Download The Importance of Advertising

CHAPTER 1
Advertising in a Marketing
Communications
Environment
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Copyright © 2009 Pearson Education Canada
Learning Objectives
 Assess the role of advertising and its
relationship to marketing and other elements
of marketing communications
 Identify distinctions among the various forms
of advertising
 Identify and define the seven components of
integrated marketing communications
Continued…
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Learning Objectives (cont.)
Explain the conditions that are necessary for
advertising to be effective
Identify the basic social and business issues
confronting the marketing communications
industry in Canada
Describe the roles that laws and regulations
play in guiding marketing communications
programs in Canada
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The Importance of Advertising
Advertising is undoubtedly the most
visible form of marketing, and its an
industry that is continuously evolving
due to rapid changes in technology.
Continued…
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The Importance of Advertising
(cont.)
Advertising is all around us
Consumers underestimate the influence it has
on us
Plays a major role in achieving brand and
company objectives by helping to attract new
customers and retaining current customers
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The Role of Advertising
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
Advertising is a paid form of marketing
communication through the media that is
designed to influence the thought patterns
and purchase behaviour of a target audience.

Its primary role is to influence the behaviour
of a target market (or target audience) in such
a way that members of the target market view
the product, service, or idea favourably.
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Advertising and Integrated
Marketing Communications
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Integrated Marketing
Communications
Involves the coordination of all forms of
marketing communications into a unified
program that maximizes the impact upon
consumers and other types of
customers.
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Integrated Marketing
Communications (IMC)
It embraces many forms of communication:
Advertising
Public relations
Sales promotion
Personal selling
Event marketing and sponsorships
Direct-response communications
Interactive communications
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IMC
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Factors Affecting IMC
Multi-tasking consumers and new technologies
Media dollars moving toward digital media
(Internet and mobile devices)
Database marketing allows consumers to be
reached effectively and efficiently
Media planning is dominating over the creative
component in advertising
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The Forms of Advertising
Consumer Advertising
Business-to-Business Advertising
Product and Promotional Advertising
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Consumer Advertising
Persuasive communications designed to
elicit a purchase response from
consumers.
The major types of consumer advertising are:
National advertising
Retail advertising
End-product advertising
Direct-response advertising
Advocacy advertising
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Business-to-Business
Advertising
Advertising directed by business and
industry at business and industry.
The major types of business-to-business
advertising are:
Trade advertising
Industrial advertising
Service-industry advertising
Corporate advertising
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Product and Promotional
Advertising
Advertising that informs customers of
the benefits of a particular brand.
Communicates a distinct reason why buying
now is better than buying later
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Conditions Necessary for
Using Advertising Effectively
For advertising to be effective, certain
conditions should be positive.
Market and Product Demand
Product Life Cycle
Competitive Advantage
Competitive Environment
Product Quality
Management Commitment
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Issues in Contemporary
Advertising
Transition to IMC
Adapting to New Technologies
Reacting to an On-Demand Media Environment
Continued…
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Issues in Contemporary
Advertising (cont.)
Reaching the Mobile and Multi-tasking
Consumer
Changing Business Environment
The Delivery of Inappropriate or Controversial
Messages
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Sex in Advertising
Using sex appeal in an appropriate
manner and for appropriate products
seems natural, but gratuitous sex is
something consumers shouldn’t have to
tolerate.
Do you agree or disagree? Explain your
position
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Extreme Advertising
Depicting dangerous or disturbing
situations in advertising messages has
come under much scrutiny in recent
years.
Do you believe this type of advertising
encourages young people to get involved in
risky activities like what is depicted in
advertisements? Explain your position?
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Laws and Regulations
The marketing communications industry
in Canada is highly regulated.
Regulation control comes from three primary
sources:
Canadian Radio-Television Communications
Commission (CTRC)
Advertising Standards Canada (ASC)
Competition Bureau
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CTRC
Independent public authority in charge
of regulating and supervising Canadian
broadcast and telecommunications
Governed by the Broadcasting Act and the
Telecommunications Act.
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ASC
Industry body committed to creating and
maintaining community confidence in
advertising.
Its mission is to ensure the integrity and viability
of advertising through self regulation.
The Canadian Code of Advertising Standards is
the principal instrument of self-regulation.
Continued…
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ASC (cont.)
The Code addresses the following concerns
about advertising:
Accuracy & clarity of
messages
Disguised advertising
techniques
Price claims
“Bait and Switch”
Guarantees
Comparative
advertising
Testimonials
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Professional &
scientific claims
Imitation
Safety
Superstitions & fears
Advertising to children
and minors
Unacceptable
depictions & portrayals
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Competition Bureau
Responsible for the administration and
enforcement of the Competition Act, a
law that governs business conduct and
marketing practices in Canada.
The Competition Act contains criminal and civil
provisions to address false, misleading, and
deceptive marketing practices.
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