Advertising

Principles and Practices

11th Edition

Sandra Moriarty
Nancy Mitchell
William Wells

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

 Chapter 1:
Advertising
Part 1
Principle: Back to Basics

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Questions to explore
1. What is advertising, how has it evolved, and what
does it do in modern times?
2. How is the industry organized – key players, types
of agencies, and jobs within agencies?
3. Why and how is the practice of advertising
changing?

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

What is advertising?

“Advertising is a paid form of persuasive

communication that uses mass and interactive
media to reach broad audiences in order to connect
an identified sponsor with buyers (a target
audience), provide information about products
(goods, services, and ideas), and interpret the
product features in terms of the customer’s needs
and wants.”

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Advertising’s basic functions
 Inform (creates awareness of brands,
products, services, and ideas)

 Persuade (tries to convince customers

that a company’s services or products are the
best, and it works to alter perceptions and
enhance the image of a company or product)

 Remind (reminds people about the need

for a product or service, or the features and
benefits it will provide)

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So what are the key components?
1. Strategy
The logic behind an advertisement stated in
objectives that focus on areas such as sales,
emotional appeal, or brand reputation.

2. Message
The concept behind a message and how it is
expressed based on consumer insights.

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So what are the key components?
3. Media
Targets prospective
buyers by matching their
profiles to media
audiences.

4. Evaluation
Based on strategic
objectives and
professional standards

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Comparative Advertising
 The FTC USA defined comparative
advertisement as one which “compares
alternative brands on objectively measurable
attributes or price, and identifies the
alternative brand by name, illustration or
other distinctive information”

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Common types of advertising
 Brand advertising
◦ Focused on long-term brand identity and image
◦ Comparative vs Noncomparative

 Retail or local advertising

◦ Focused on selling merchandise in a geographical
area

 Direct-response advertising (Social Media, Text

Msgs, Email, Contests, Chatbots, Upselling)
◦ Tries to stimulate an immediate customer response

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Common types of advertising
 Business-to-business advertising (B2B)
◦ Sent from one business to another

 Institutional advertising
◦ Establishes a corporate identity; attempts to win
the public over to the organization’s point of view

Corporate identity is how your business

presents itself to the outside world

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Common types of advertising
 Nonprofit advertising
◦ Used by not-for-profit organizations to reach
customers, members, volunteers, and donors

 Public service advertising

◦ Usually produced and run for free on behalf of a
good cause

 Specialized advertising
◦ Used to address specific areas such as health
care, green marketing, international campaigns

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Types of Advertisements
Brand Advertising
Brand Advertising
 Comparative Advertising
• “Direct”
◦
Name the
competitors
◦
https://
www.youtube.com/
watch?
v=KvfbzwNzaWs
 Comparative Advertising
 “Indirect”
◦
“Leading cold
medicines”
Retail Advertising
Local
Advertising
Direct-Response
Business to Business (B2B)
B2B

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Institutional
Institutional advertising consists of
promotional activities that aim to
improve reputation, create a positive
image or encourage support of an
organization.

https://www.youtube.com/watch?
v=R9gq_Oe0TK4

https://www.youtube.com/watch?
v=GAwTsvo5vS8
Nonprofit Advertisng
Public Service
(Public Service Announcement PSA)
Bringing it all together
All advertising:
 Demands creative,
original messages.

 Must be strategically
sound, well executed.

 Is delivered through
some form of media.

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Is advertising the only tool?
Other tools in the promotional toolkit:

 Publicity
 Public relations
 Direct-response
 Specialties

Together, these tools are known as marketing

communication, or marcom.

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The Advertising World

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Who are the key players?
The Organization
 The message sponsor or advertiser

 Likely to have a marketing team that initiates the

advertising effort

 Hires the advertising agency

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Who are the key players?
The Agency
 Creates, produces, and distributes the messages.

 Employs experts who are passionate about their

work.

 Can negotiate the best media deals for clients.

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Who are the key players?
The Media
 Channels of communication that deliver messages
and engage audiences.

 Many are large media conglomerates such as

Time Warner and Viacom.

 The mass media enable advertisers to reach many

people with a single message in a cost-efficient
manner.

Copyright © 2015 Pearson Education, Inc. publishing as Prentice Hall

Who are the key players?
Professional Suppliers
and Consultants

 Provide specialized services

to advertisers and agencies.

 Includes artists, writers,

photographers, producers,
printers, and vendors who
supply user-generated
content online

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Types of agencies
 Full-Service Agencies
◦ Encompasses account management, creative
services, media planning, and account planning.

 In-House Agencies
◦ Is a part of the advertiser’s organization; helps to
control costs and maintain control over brand
image.

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Types of agencies…..
 Specialized Agencies
◦ Specialize in certain functions, audiences,
industries or markets.

 Creative Boutiques
◦ Small agencies that work only on the creative
execution of an idea or product.

 Media-Buying Services
◦ Specialize in the purchase of media for clients

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How are agency jobs organized?
The five main areas:

1. Account management
2. Account planning and research
3. Creative development and research
4. Media research, planning, and buying
5. Internal operations

Let’s take a look at each one……

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Agency jobs......
Account management
 This team acts as a liaison between the client and

agency.
 The account executive interprets the client’s

marketing research, strategy for the agency.

Account planning and research

 This team gathers market intelligence and acts as

the voice of the consumer.

 Strategic specialists research consumers’ wants,

needs and brand relationships.

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Agency jobs......
Creative development and production
 Includes copywriters, art directors, and producers.

Media research, planning, and buying

 This department provides research, planning, and

buying services.

Internal operations
 Includes traffic, print production, finance, and

human resources.

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How are agencies paid?
From three main sources:
1. Commissions: based on
media billings.
2. Fees: based on an hourly
rate or project. Also
covers travel and various
expenses.
3. Retainers: A regular
amount billed each
month, based on
projected work.

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How are agencies paid?
Two recent trends:

1. Based on performance: the agency is paid a

percentage of the client’s sales or marketing
budget.

2. Value billing: the agency is paid for its creative

and strategic ideas rather than for executions
and media placements.

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 How is the Practice
of Advertising Changing?

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Consumer in charge
 The days of pounding people with images,
shoving them down their eyeballs are over.

 Consumer-generated advertising creates valuable

brand publicity.

 Consumers have taken control of media and

marketing through the Web and social media.

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Blurring lines
and converging media
 Television is still a major player, but the number
of cable channels has exploded.

 Digital media has fragmented the media world

with new, ever-changing forms.

 Agencies must take a stronger leadership role in

the development of brand strategy.

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Accountability and effectiveness
 Accountability: This has grown in importance
over the past two decades.
 Effectiveness: In tight economic times, it is more
critical than ever to deliver results.

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A question for you……
What is an effective ad?

Answer:

Effective ads deliver the message the advertiser

intended, and that consumers respond to as the
advertiser hoped they would.

Effectiveness is gauged according to predetermined

objectives.

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Integrated Marketing
Communication (IMC)

The first principle of IMC:

“Everything communicates!”

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Integrated Marketing
Communication (IMC)

“Integrated marketing communications (IMC) is

an approach to creating a unified and seamless
brand experience for consumers across
channels”

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Integrated Marketing
Communication (IMC)
 IMC is all about integration.

 IMC is the primary tool of brand communication.

 Brand messages must complement one another

and present the same basic brand strategy.

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Looking ahead
In Chapter 2, we will:

 Explain the bigger picture of advertising and its

role in marketing communication and marketing.

 Explore new ways that agencies are working to

interact with customers and cement brand
relationships.

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It’s a Wrap
“Old Spice: The Smell of Success”

 Old Spice generated excitement

with guys who were not current
customers and women who
typically made most body wash
purchases.

 The “hunk” atop the horse

captivated the audience – think
“eye candy!”

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It’s a Wrap
“Old Spice: The Smell of Success”

Key lessons
 Old Spice used research to generate insights that

drove the campaign.

 They involved both men and women in the

conversation about what a guy should smell like.

 The campaign generated an incredible amount of

free public relations and social media buzz.

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