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Advertising A welcome to Advertising for 5th year students. Instructor: Dr. Ebtisam Fetohy Advertising Today’s Lesson lecture Outline lecture Description and introductory questions Advertisements Advertising in Context Brand and Marketing Mix Role of advertising Integrated communications Summary and Discussion Lecture Outline Description and Rationale Although advertising is an accepted part of every day life, there is still great debate as to how advertising works and the role it can and should perform within the marketing communication mix. This lecture enables the students to review this debate and apply the theories to the advertising in our media today. They will learn how to put together an advertising plan and will examine the ingredients of an effective advertisement and ways in which this effectiveness can be measured. Aims and Objectives To gain an understanding of the role of advertising within the Marketing Communications Mix To examine communication and advertising theories and their relationship with consumer behavior To develop knowledge of advertising strategy and planning To examine the importance and uses of creativity in advertising To gain an understanding of various production techniques To appreciate the complexities of evaluation Learning Outcomes The students will be able to: Identify the role of advertising within the Marketing Communications Mix Analyze advertisements in terms of creativity and execution Create advertising objectives and put together a plan to meet these objectives Examine marketing data, using appropriate techniques, and use the information to establish and solve marketing communication problems Understand the techniques and procedures involved with advertisement production Put together testing procedures for the evaluation of advertisements Advertisements Advertisements are not just advertising اعالن. Def’n: a) To describe the process of using advertisements to sell things B) To refer to the industry that produces the ads. Advertisements ‘above – the-line’ – advertising in the media ‘Below – the – line’ – point of sale messages رسائل نقاط البيع advertisements What is an advertisement? Anything that calls attention to a product or service Examples: TV commercial Newspaper/magazine ad Poster Clothing Cigarette lighter, …. Advertising in Context Who engages in advertising? Businesses, Governments, and Individuals. Advertising in Context Media advertising is becoming less, rather than more, important in the overall scheme مخططof marketing communications. This is not necessarily for good reasons but it is a fact. Advertising in Context Fast-moving consumer goods (fmcg) Key factor Weekly feedback تعليقات Short term results from sales promotion Budgets shift to below-the-line رسائل نقاط البيع I.e.,: various types of price cutting Advertising in Context This can actually lead to an increase in the price elasticity مرونةof brandstherefore self-defeating (فاشل (هزيمة In long run – consistent media advertising can build the strength of a brand. Brand and Marketing mix What is a Brand? It is a product whose producer has made every effort to make it uniquely desirable to potential buyers, consistently using every element in its presentation to do so. Brand and Marketing mix Why do companies do this? If done well, it makes the brand difficult to compete against. It develops an aura هالةmaking it appear better than its competition. Brand and Marketing mix A brand is created by all the elements of the marketing mix working together. Creates a positive prejudice in people’s minds. Brand and Marketing mix Def’n – Marketing Mix: a range of tools and techniques that allows businesses األعمال التجاريةto provide customers with what they want. It acts as a conduit قناةfor consumer demand to reach businesses. Thusly هكذا, turning this demand into profitable sales. Brand and Marketing mix Marketing mix tools include (6 P): Product formulation and variation Packaging Sales literature The sales force (policy) Pricing Sales promotion Direct mail Advertising Market research (place) Branding Brand and Marketing mix 1) 2) 3) Components of the marketing mix Net sales value Costs and contribution المساهمة The marketing mix 1) Net sales value ¤ ¤ ¤ Gross margin الربح االجمالي Cost of goods: Materials Packaging تغليف Manufacturing تصنيع 2) Costs and contribution ¤ ¤ ¤ ¤ Operating التشغيلcontribution Selling costs (the marketing mix) Sales Distribution Communications Research 3) The marketing mix Sales and distribution costs The communications mix Advertising Public relation (PR) Direct marketing Promotions Exhibitions Etc. Role of Advertising Simply put: Advertising exists to help to sell things. It is mainly about brands It is mainly designed to create and strengthen consumer impressions انطباعاتof the brand Exception is public service advertising Role of advertising Marketing Communication Economic Societal The process a business uses to satisfy consumer needs by providing goods and services • • • • Product category Target هدفmarket Marketing mix Brand عالمة تجارية Role of advertising Marketing Communication Economic Societal Can reach a mass audience Introduces products Explains important changes Reminds and reinforces يعزز Persuades Role of advertising Marketing Communication Economic Societal Moves from being informational to creating demand Advertising is an objective موضوعية means for providing price-value information, thereby creating a more rational economy Role of advertising Marketing Communication Economic Societal Informs consumers about innovations and issues Mirrors fashion تصممand design trends االتجاهات Teaches consumers about new products Helps shape consumer self-image Perpetuates يدعم selfexpression Integrated Communications Advertising is part total continuum of communications about the brand. It may have a leading role and carry the greatest budget: but it can be merely cast يلقيييin a supporting role for a campaign of of activity centered around an event. The importance of advertising Involves a huge amount of money Work is done by relatively few people Major expense is for media time/space Companies spend only a small percentage of sales on advertising Types of advertising Product advertising—Tries to sell a specific product to *final users or *channel قناةmembers • • Pioneering ريادي- االبتكاريadvertising builds primary demand Competitive advertising builds selective demand Corporate/institutional advertising—Tries to *promote an organization's image, *reputation سمعةor *ideas—rather than a specific product Major advertising media Magazine Television Newspaper Yellow Pages األدلة التجارية Radio Outdoors النزهات Cinema Internet The Functions of Advertising Builds awareness of products and brands Creates a brand image Provides product and brand information Persuades people Provides incentives to take action Provides brand reminders Reinforces يعززpast purchases and brand experiences The Key Players الممثلون Advertiser (client) Agency Media Supplier Audience Uses advertising to send out a message about its products Initiates the advertising effort by identifying a marketing problem Approves يصدقaudience, plan and budget Hires the advertising agency The Key Players Advertiser (client) Agency Media Supplier Audience Has strategic and creative expertise, Media knowledge, Workforce talent موهوبة, and Negotiating تفاوضيةabilities • Advertising department • In-house agency وكالة خاصة The Key Players Advertiser (client) Agency Media Supplier Audience The channels of communication that carry the message to the audience Are also companies or huge conglomerates تكتالت Mass media advertising can be cost effective because the costs are spread over the large number of people the ad reaches The Key Players Advertiser (client) Agency Media Supplier Audience Assist *advertisers, *agencies, and *the media in creating and placing the ads Vendor بائعservices are often cheaper than those in-house خاصة The Key Players Advertiser (client) Agency Media Supplier Audience The desired audience for the advertising message Data-gathering technology improves accuracy of information about customers Advertisers must recognize the various target audiences they are talking to and know as much about them as possible Types of Advertising Brand advertising Retail بالمفردor Local advertising Direct-Response advertising Business-to-Business األعمال advertising Institutional advertising Nonprofit advertising Public Service advertising بين What Makes an Ad Effective? 1. If it creates an impression for a product or brand 2. If it influences people to respond in some way 3. If it separates the product or brand from the competition in the mind of the consumer Conclusion A. B. C. i. ii. Advertising agencies: How they work, How they are organized, and How to choose and use one. Advertising strategy: How to think about what the ads are trying to do, and Understanding the people they are aimed at. How good advertisements can be created. conclusion A. B. C. D. Media: What is available, and How it is bought, Sold and Planned. Putting a campaign plan together. Judging advertisements and evaluating campaigns. The law, regulation and self-regulation Advertising internationally دولياand globally If we have time – The relationship between advertising and the economy and society Summary Advertising is a core part of many companies’ marketing mix: the activities that link a brand to its market and its consumers or customers Traditionally, media advertising has taken the lion’s share of marketing communications budgets, at least for most consumer goods companies, since it is a cost-effective means of reaching large numbers of people. Summary As media and markets have fragmented, however, other forms of communication are gaining importance, and advertising is increasingly seen as just part of an integrated communications programme As such, advertising works together, and integrates with, a variety of other forms of communication. Questions for discussion Is advertising becoming more or less important to companies? Why should this be so? How might the marketing mix differ for a brand of frozen food, a charity and a bank?