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Advertising as a process

Chapter 1. Advertising as a process. What is advertising?. Three criteria must be met for a communication to classified as advertising: The communication must be paid for The communication must be delivered through mass media The communication must be attempting to persuade.

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Advertising as a process

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  1. Chapter 1 Advertising as a process

  2. What is advertising? Three criteria must be met for a communication to classified as advertising: • The communication must be paid for • The communication must be delivered through mass media • The communication must be attempting to persuade Ch 1: The process 2

  3. Distinctions Within advertising? • Advertisements • Specific messages designed to persuade an audience • Advertising Campaign • An integrated series of ads and promotions that communicate a central theme or idea • Integrated Brand Promotion (IBP) • Coordinating promotional tools to build and maintain brand awareness, identity, and preference Ch 1: The process 3

  4. Is this political message an advertisement or a public service announcement?

  5. Advertising as a Communications Process • Production: The advertiser and social context determine ad content. • Accommodation and negotiation: The ways in which consumers interpret ads. • Reception: The context of ad reception and the audience’s understanding of an ad result in a meaningful interpretation of the ad. Ch 1: The process 5

  6. Audiences for Advertising • Household Consumers • Business Organizations • The Trade Channel • Professionals • Government Ch 1: The process 6

  7. Audience Geography Global International National Regional Local Ch 1: The process 7

  8. This ad ran in Italy. Do you think this was a “global” ad or and “international” ad? What’s the difference?

  9. Advertising as a Business Process: Role of Advertising in Marketing and Brand Promotion • Advertising and the marketing mix • Advertising in brand development and management: • Advertising in market segmentation, differentiation, and positioning • Advertising in revenue and profit generation: Ch 1: The process 9

  10. The Marketing Mix Product Distribution Perceived Value Promotion Price Ch 1: The process 10

  11. Advertising in Brand Development and Management • The Brand • Brand Extension • Brand Loyalty • Brand Equity Ch 1: The process 11

  12. Advertising’s role in SDP marketing Positioning Segmentation (heterogeneous > homogeneous) Differentiation (perceived as different or unique) • Distinct from other brands • Occupies a “value” level • External niche vs. internal Ch 1: The process 12

  13. Revenue and Profit Generation • Economies of scale • Inelasticity of demand Ch 1: The process 13

  14. Types of Advertising • Primary demand stimulation • Selective demand stimulation • Direct response advertising • Delayed response advertising • Corporate advertising Ch 1: The process 14

  15. Is this ad an example of primary or selective demand stimulation? What’s the difference? Ch 1: The process 15

  16. The Economic Effects of Advertising Gross Domestic Product Business Cycles Competition Prices Value Ch 1: The process 16

  17. Special Events Television Advertising C o u p o n s Integrated Brand Promotion (IBP) Coordinated promotional events reinforce one another Ch 1: The process 17

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