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Advertising Basics of advertising Language associated with advertising How Many Ads to You See Each Week? The average person is exposed to approximately 2000 ads each week. Do you see that many or more? Key words advertise advertisement advertising advertiser advertising agency advert ad Warm-up Discussion What are your impressions of advertising in daily life? What part has advertising played in your purchase or selection of products or services? What is your attitude towards advertising, positive or negative? Discussion What is advertising? What is advertising? Advertising is the nonpersonal communication of information, usually paid for and usually persuasive in nature, about products (goods and services), or ideas by identified sponsors through the various media. — AMA Advertising’s role in marketing Marketing is a process—a series of actions or methods that take place sequentially—aimed at satisfying customer needs profitably. This process includes developing products, pricing them strategically, making them available to customers through a distribution network, and promoting them through sales and advertising activities. 4Ps (marketing mix): product, pricing, place (distribution) & promotion (communication) Advertising’s role in marketing Advertising is one of the numerous tools used in the promotion, or communication aspect of marketing. (a promotional or communication tool) TYPES OF ADVERTISEMENTS • Advertising – Definition? Two types 1) Product Advertisements Purpose is a) Pioneering (informational) b) Competitive (compare to others) c) Reminder (refresh memory & validate usage) Nokia - What is the type and purpose of this ad? Dial Soap What is the type and purpose of this ad? TYPES OF ADVERTISEMENTS 2) Institutional Advertisements Purpose is a) Advocacy (state company position on a cause) b) Pioneering (state what the company does) c) Reminder (reinforce & promote company) Can advertise a company or an entire industry Key Bank What is the type and purpose of this ad? The Wall Street Journal What is the type and purpose of this ad? Designing the Advertisement Message Appeal • Fear Appeal – avoid a negative experience • Sex Appeals – increase the attractiveness of the use • Humorous Appeal – use will be fun and exciting Often used in combination Advertising Advertising is any impersonal, one- way mass communication about a product or organization that is paid for by a marketer. Product Advertisements Product advertisements are advertisements that focus on selling a specific good or service the company offers. Institutional Advertisements Institutional advertisements are advertisements designed to build goodwill and an image for an organization without focusing on any one product the company makes. Infomercials Infomercials are program-length (30-minute) advertisements that take an educational approach to communication with potential customers. Product Placement Product placement is a sales promotion tool that uses a brand-name product in a movie, television show, video, or a commercial for another product. Cooperative Advertising Cooperative advertising consists of advertising programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products. Selecting the Right Advertising Media Cost per thousand Reach Frequency Audience Selectivity The cost of reaching a thousand people or households at least once The number of different people exposed to an advertisement at least once The number of times an individual is exposed to a message The ability of an advertising medium to reach a precisely defined market. Functions of Advertising To identify products and differentiate them from others. (branding) To communicate information. To induce consumers to try new products and to suggest reuse. (new and repeated consumers) To stimulate the distribution. To build brand awareness, preference and loyalty. To lower the cost of sales. (For the cost of reaching just one prospect through personal selling, companies can reach thousands of people through media advertising.) Classifications of Advertising Classification by target audience Consumer advertising: aimed at people who buy for their own use Business advertising: aimed at people who buy for use in business Classification by geographic area: International/global advertising (foreign markets) National advertising Regional advertising (in one area or region) Local advertising (in only one city or local trading area) Classifications of Advertisement Classification by medium: Print advertising (newspaper, magazines, brochures, flyers) Electronic advertising (television, radio: commercials; Internet) Outdoor advertising (billboards, kiosks, public transport, events) Direct-mail advertising (through the Postal Service and by e-mail) POP (point of purchase) advertising Advertising Media & Methods wall paintings web banners web popups mobile telephone screens shopping carts skywriting human directional town criers painted vehicles in-flight ads subway platforms shopping bags train cars event tickets and supermarket receipts e-mails (spam) street furniture Discussion 1. 2. 3. Questions: Outdoor advertising is increasing in many countries. Is this a good thing? What products do you think are suitable for outdoor advertising? Make a list of the advantages and disadvantages of the major media.