Download INTRODUCTION TO ADVERTISING

INTRODUCTION TO
ADVERTISING
Definition. The Industry. Roles. Types. Evolution
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Team Obama campaign in 2006 was woven round
the theme –change- and the slogan ‘yes, we can’
Team Buhari capitalized on the change mantra with
drive to ease of corruption, impunity, bad
governance
Team Obama spent $310m while Team Buhari
spent N1.424bn
How was this money spent? – print, TV, social media,
radio, billboard, promotion, etc
Most of Obama money was raised online
Before we define advertising…
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The whole business of marketing communications is building
a relationship – relationship marketing
Consumers can choose from a wide variety of products and
services. As a result, the customer relationship—in which the
sale is only the beginning—is the key strategic resource of
the successful 21st-century business. Commitment to
relationship marketing helps:
identify, satisfy, retain, and maximize the value of
profitable customers
manage the contacts between the customer and the
company to ensure their effectiveness
develop a full view of the customer by compiling and
analyzing customer data.
The importance of relationship
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The cost of loosing a customer – no amount of
marketing can win back a lost loyal customer; wordof-mouth marketing can have snowballing effect
The cost of acquiring new customer – defensive
marketing cost less than offensive marketing
because it is not easy to lure satisfied customer
away from the competition
The value of loyal customer – the longer customer
stays with a product, the more they are willing to
pay premium
Relationship could be
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Basic transactional relationship. The company sells the product but
does not follow up in any way (Target).
Reactive relationship. The company (or salesperson) sells the
product and encourages customers to call if they encounter any
problems
Accountable relationship. The salesperson phones customers shortly
after the sale to check whether the product meets expectations and
asks for product improvement suggestions and any specific
disappointments. This information helps the company continuously
improve its offering
Proactive relationship. The salesperson or company contacts
customers from time to time with suggestions about improved product
use or helpful new products
Partnership. The company works continuously with customers (and
other stakeholders) to discover ways to deliver better value
What then is advertising?
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Advertising is the structured and composed
nonpersonal communication of information, usually
paid for and usually persuasive in nature, about
products (goods, services, and ideas) by identified
sponsors through various media.
X-ray each of the key concepts in the definition
Roles of advertising
Five Players of Advertising
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The Advertiser is the individual or organization that
usually initiates the advertising process.
The Advertising Agency plans and implements part or
all of the advertising efforts.
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May use an outside agency, or their own advertising
department or in-house agency.
The Media are the channels of communication that carry
the messages from the advertiser to the audience, i.e.
television, magazines, radio, etc.
Five Players of Advertising
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The Vendors are a group of service organizations that
assist advertisers, advertising agencies, and the media,
i.e. freelance copywriters, graphic artists,
photographers, etc.
The Target Audience may be the purchaser or the
consumer of the product, or both. May need to design
different ads for each group.
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Critical to know as much about these target audiences as
possible.
The Evolution of Advertising
14411850
1850’s1900
Age of
Print
Industrial
Revolution &
Consumer Society
World War IWorld War II
Advertising
Declines
1950’s
Reintroducing
Consumers to
Marketing
19001950’s
1920’s
Age of
Science
Rise of
Agencies
1960’s1970’s
1970’s1990’s
Creative
Era
Accountability
Era
Current Advertising Issues
Interactive Advertising
Integrated Marketing Communication
Globalization
Niche Marketing
Consumer Power, Relationship Marketing
and Customization
Some other Key Issues in Advertising
1. Message related issue such as misleading claims;
puffery; comparative ad; endorsement/testimonials
2. Product related issues – controversial product;
unhealthy/dangerous product; prescription drugs;
tobacco; alcohol; gambling
3. Subliminal advertising
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Advertising and Social Responsibility
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Is advertising inherently good for society or not?
People draw on the demand creation debate as well
as the manipulation of the mind debate [shape vs
mirror debate] and then the over-commercialization
debate
Ethical issues
 Advocacy
 Accuracy
 Acquisitiveness
Is being ethical a problem?
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Social Responsibility
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Public service announcements (PSAs)
 Ad
Council
Social marketing
Other KEY social responsibility issues are
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Poor taste/offensive ad
2.
Sex in ad
3.
Portraying diverse people fairly & accurately –
gender stereotypes; body image & self image;
racial & ethnic stereotypes; cultural differences in
global ad; age related stereotypes; advertising to
children; gay/lesbianism; senior citizens
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Advertising legal/Regulatory environment
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Government laws and regulations such as
Trademark and copyright protection, APCON,
NAFDAC, SON, NBC
Industry self regulations - AAPN, OAPN,
socially responsible
Media review
Public/community review – CPC, local groups;
activists
Competitive complaints
Best advertising practices
Protection of the advertising business
Children’s Online Privacy Protection Act
Enacted
Enacted to
to Protect
Protect the
the Privacy
Privacy
Of
Of Children
Children When
When They
They Are
Are
Using
Using the
the Internet
Internet
Places Restrictions
Restrictions on
on Collecting
Collecting
Places
Information From
From Children
Children Via
Via
Information
The Internet
Internet
The
Privacy Policies
Policies Must
Must
Privacy
Be Posted
Posted on
on Home
Home Pages
Pages
Be
And Area
Area Where
Where Information
Information
And
Is Collected
Collected
Is
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Segmentation
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Market segmentation is a marketing strategy
that involves dividing a broad target market
into subsets of consumers who have common
needs, and then designing and implementing
strategies to target their needs and desires
using media channels and other touch-points
that best allow to reach them.
Positioning
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. A product’s position is the way the product is
defined by consumers on important attributes –
the place the product occupies in consumers’
minds relative to competing products. “Products
are created in the factory, brands are created
in the mind,” says a positing [sic] expert.