Advertising

Module 3: How Advertising Works?

How advertising
Module 3
works?
01 Types of Advertising

02 The Advertising Agency

03 Participants in the Advertising

Industry
How the Advertising Industry Works
Advertising is the most effective way
to reach consumers and create product/
service awareness. Advertising has become
increasingly important as more and more
companies compete for consumer dollars.
Companies rely on advertising to drive
demand for their products and services.
Developing the most effective
advertisements is a time consuming,
expensive process. Successful advertising
requires more than a strong understanding
of the product or service being promoted. It
also requires knowledge about psychology,
consumer behavior, cultural trends,
technology, the competition, and many
more marketing elements.
ADVERTISING – MODULE 3
 ADVERTISING – MODULE 3

Types of Advertising
Advertiser include large for non-profit corporations that sell
products, or services, nonprofit groups, politicians, and other
types of organizations. Among these various types of advertisers,
there are three common types of advertising.
1.Product Advertising
2.Brand Advertising
3.Corporate Advertising
 ADVERTISING – MODULE 3
Product Advertising
Most companies use some form of product advertising.
Product advertising uses rational arguments to communicate
why consumers need a specific product by highlighting the
benefits associated with the use of that product. Product
advertising presents at least one product characteristics as a
reason for purchasing a product.
 ADVERTISING – MODULE 3

Brand Advertising
A brand is an important component in many
advertisements. A brand is the combination of
unique qualities of company, product, product line.
The name, logo, slogan, and design are important
elements of brand. Brand advertising is used to
build an image based on the set of values held
by the company. Nike is known for competitive
edge and can-do attitude, which has been
communicated through its “Just Do It” slogan.
Through brand advertising, Nike has created a
personality in the minds of consumers. Individual
look for brands that match their personalities.

Corporate Advertising
Some companies use
corporate advertising, which is
intended to enhance a company’s
reputation or build good-will. It is
known as institution advertising.
Corporate advertising does not ask
consumers to take specific action,
such as buy a product. Instead, it
promotes a positive attitude
toward the company.
ADVERTISING – MODULE 3
When GE ran an advertisement
about capturing and using wind
energy through the use of windmills,
it was not promoting a product.
Instead, it was attempting to
associate its name with energy
conservation. Corporate advertising
can also be used by companies to
take a stand on important social
issues.
 ADVERTISING – MODULE 3

The Advertising Agency

Many companies obtain the outside services of an advertising
agency to develop advertising strategies. The advertising agency is a
marketing business that plans, creates, and manages the advertising for
other businesses. The primary role of the advertising agency is to analyze
a company’s goals and help it achieve those goals through well-planned,
result-oriented advertising strategies. Advertising agency are also
assigned with the tasks of building campaigns to increase sales of the
company’s products, to reaffirm the brand image, to attract new
customers, and to retain current customers. They are challenged to find
ways to present a business’s product and service offerings in a positive
light.
 ADVERTISING – MODULE 3

The Advertising Agency

Many companies decide to work with advertising agencies because
of the knowledge, expertise, and talent they can provide. Representatives
of the advertising agency create, strategize, and plan advertising
messages to reach targeted audiences. The first task of the advertising
agency is to develop a thorough understanding of the product to be
advertised and the target audience for the product so that an overall
advertising strategy can be developed. Then an advertising campaign is
created, and the advertising agency searches for the most effective types
of media to use to promote the product. The agencies must do all of this
while staying within their client’s budget.
 SOCIAL MEDIA
 The Advertiser (persons, organizations, companies, and manufacturers of products and services)
that needs creative messages (advertisements) and advertising campaigns to reach target markets.
Advertisers hire advertising agencies to create the most effective advertisements for target markets.
 Advertising Agency Services and Careers
 Account management in the advertising agency begins with the account executive who serves as
the main link between the client and the advertising agency. Account executives communicate the client’s
objectives to the other team members and ensure that strategies are carried out on schedule and within
budget.
 An account planner directs the marketing research efforts involved in an advertising campaign.
The account planner helps the creativeYourteam understand “turn the consumer on”.
Picture Here And Send To Back
 The artistic look of the advertisement is the responsibility of the art director, while the words used
in the advertisements are the responsibility of the copywriter. A creative director oversees and helps
guide the creative process to ensure that team members deliver an advertisement that conveys the client’s
message.
 The production department for an advertising agency is led by a producer who manages
everything happens after an advertisement is developed.

Participants in the Advertising Industry

ADVERTISING – MODULE 2
Academic Exchange
Answer the question:

1. Describe the three common types of

advertising?
2. Explain the advertising agency.
 Group Work
Create a group of 3 members. Identify
examples of product, brand, corporate
advertising. Present it in a slide or vide
form.
Thank You