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Chapter 1
Advertising as a
process
What is advertising?
Three criteria must be met for a
communication to classified as
advertising:
• The communication must be paid for
• The communication must be delivered
through mass media
• The communication must be attempting
to persuade
Ch 1: The process 2
Distinctions Within
advertising?
• Advertisements
– Specific messages designed to persuade an
audience
• Advertising Campaign
– An integrated series of ads and promotions that
communicate a central theme or idea
• Integrated Brand Promotion (IBP)
– Coordinating promotional tools to build and
maintain brand awareness, identity, and
preference
Ch 1: The process 3
Is this political
message an
advertisement or
a public service
announcement?
Advertising as a
Communications Process
• Production: The advertiser and social context
determine ad content.
• Accommodation and negotiation: The ways in
which consumers interpret ads.
• Reception: The context of ad reception and
the audience’s understanding of an ad result in
a meaningful interpretation of the ad.
Ch 1: The process 5
Audiences for Advertising
•
•
•
•
•
Household Consumers
Business Organizations
The Trade Channel
Professionals
Government
Ch 1: The process 6
Audience Geography
Global
International
National
Regional
Local
Ch 1: The process 7
This ad ran in Italy. Do you think this was a
“global” ad or and “international” ad?
What’s the difference?
Advertising as a Business
Process: Role of Advertising in
Marketing and Brand Promotion
1. Advertising and the marketing mix
2. Advertising in brand development and
management:
3. Advertising in market segmentation,
differentiation, and positioning
4. Advertising in revenue and profit generation:
Ch 1: The process 9
The Marketing Mix
Product
Promotion
Distribution
Price
Ch 1: The process
Advertising in Brand
Development and Management
1. The Brand
2. Brand Extension
3. Brand Loyalty
4. Brand Equity
Ch 1: The process
Segmentation
(heterogeneous > homogeneous)
Differentiation
(perceived as different or unique)
Positioning
Advertising’s role in SDP
marketing
•Distinct from
other brands
•Occupies a
“value” level
•External niche
vs. internal
Ch 1: The process
Revenue and Profit
Generation
1. Economies of scale
2. Inelasticity of demand
Ch 1: The process
Types of Advertising
1.
2.
3.
4.
Primary demand stimulation
Selective demand stimulation
Direct response advertising
Delayed response
advertising
5. Corporate advertising
Ch 1: The process 14
Is this ad an example of primary
or selective demand stimulation?
What’s the difference?
Ch 1: The process 15
The Economic Effects of
Advertising
Gross Domestic Product
Business Cycles
Competition
Prices
Value
Ch 1: The process 16
Integrated Brand Promotion
(IBP)
C
o
u
p
o
n
s
Coordinated
promotional
events
reinforce one
another
Ch 1: The process 17