McGraw-Hill/Irwin © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Chapter 1
What is Advertising Today?

Defining
advertising and
Insert Bunny ad
introducing the p. 3
profession Here
 Objectives
Define advertising and Explain how
differentiate it from advertising differs from
other forms of the basic human
marketing communication
communications process

Define marketing and Discuss advertising’s

identify the four role in marketing
elements of marketing strategy

Differentiate consumer
and business markets
 Exchanges perception,
What is Advertising?
satisfaction

Advertising
The structured and
composed
Usually paid for
nonpersonal
communication Usually persuasive in nature

About products

From identified sponsors

Through various media

 Communication: What makes
Advertising Unique

The human communication process

Source Encoding Message Channel

Formulates Encodes it as Sends it via

an idea a message a channel
 Communication: What makes
Advertising Unique

The human communication process

Source Encoding Message Channel

Decoding Receiver

To be By a
Feedback decoded receiver
 Communication: What makes
Advertising Unique
 Applying the communication process to advertising
Source Message Receivers

Sponsor
Author

Within the text of the advertisement

Persona Literary form Implied
1. Autobiography consumers
2. Narrative
3. drama
Sponsorial
consumers
Feedback
Actual
consumers
 Source Dimensions

Legally responsible
Sponsor
Has a message for consumers

Copywriter, art director, or

creative group
Author
Creates the message but
invisible to the audience

Real or imaginary
spokesperson
Persona
Represents the sponsor
 Message Dimensions

Autobiography “I” tell a story about myself

to “you,” the imaginary
audience

Narrative Third person tells a story

about others to imagined
audience

Drama Characters act out events in

front of imagined audience
 Receiver Dimensions

Implied Ad texts presume an audience

consumers Gatekeepers who decide if the ad

will run

Sponsorial These implied consumers are not

real
consumers
Sponsor’s executives

Actual People in the real world who

comprise the target audience
consumers
Applying the Communication Process to
Advertising

Redeemed
Coupons
Feedback
and
Interactivity
Phone
Inquiries

Increased
Survey
Sales
Responses
 Exchanges perception,
What is Marketing?
satisfaction
Process of planning and
Marketing executing

The conception, pricing,

distribution and promotion

Of ideas, goods, and services

To create exchanges that satisfy

Perceived needs, wants, and

objectives
Advertising and the Marketing Process

Marketing What
the ads
Strategy should
Determines accomplish What
media
should
be used
Where
advertising
should Who should
appear be the
targets
Identifying Target Markets and Target
Audiences
Marketing
Activities
Targe
Targe
tt
Mark
Mark
et
et

Total
Market
Identifying Target Markets and Target
Audiences

Advertising

Target
Target
Audienc
Audienc
ee

Total
Audience
 Types of Markets

Consumer
Markets
Total
Market
Industrial
 Types of Markets

Consumer
Markets
Total
Market
Industrial
Types of Markets

Consumer
Markets

Includes retail
advertising

Public service
announcements
 Types of Markets

Also called
Business-to-business
Consumer
Markets
Specialized
Trade
Farm BTB
Professional
advertising
advertising
advertising
advertising:

Industrial
Implementing Marketing Strategy

Marketing Strategy:
A mix of controllable strategic elements:

Product Distribution

Pricing Communication
 The Product Element

For virtually every product Mass

merchandi
specialists use a specific consume
type of advertising package
goods
advertisin

Tech or science Insurance or

products use tax prep
high-tech companies use
advertising service
advertising
The Price Element

Does the company

YES
NO
compete on price?

Sale advertising

Clearance advertising

Loss-leader advertising
 The Price Element

Does the company

NO
compete on price?

Regular price-line Image

advertising advertising
 The Distribution Element

Global Marketers
Global advertising sends
consistent messages
around the world

Brazil
Turkey
Spain
Italy
 The Distribution Element

Other Global
Marketers
International advertising
tailors messages to
foreign markets

Turkey
Spain
Brazil
Italy
 The Distribution Element

National
advertising
Companies marketing in
several regions
 The Distribution Element

Local
Advertising
Businesses and retailers
operating in a small
trading area
 Communication Element

Advertising
Marketing
Communications Personal selling
(marcom)
Sales promotion
All planned messages
That companies create
And disseminate to support Public relations activities
marketing
Collateral materials
 Communication Element

Integrated
Collateral
Materials Marketing Product
Communications Advertising

Sales
Promotion

Public
Personal Relations
Selling
 Communication Element

Integrated
Marketing
Communications

Collateral Personal Sales Public Product

Materials Selling Promotion Relations Advertising