Abm Basics 1

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    Introduction toAdvertising

    PROF. (DR.) ANUPAM NARULA

    B.Sc. (Math's), M.A (Eco.), PGDBM (MKTG), Ph.D. (Eco.)

    DEAN,

    MANGALMAY INSTITUTE OF MANAGEMENT STUDIES,8 - KNOWLEDGE PARK-II ,

    GREATER NOIDAGREATER NOIDA

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    Chapter Outline

    I. Chapter Key Points

    II. What is Advertising?

    III. Roles and Functions of Advertising

    IV. The Key Players

    V. Types of Advertising

    VI. What Makes an Ad Effective?

    VII. The Evolution of Advertising

    VIII.The Current Advertising Scene

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    Key Points

    Define advertising and explain its key components

    Discuss the roles and functions of advertising withinsociety and business

    Identify the key players and their roles in creatingadvertising

    Explain the different types of advertising

    Summarize the characteristics of effective advertising

    and explain why it is always goal directed Analyze the changes affecting the advertising

    industry

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    Defining Modern Advertising

    Advertising is paid

    persuasive

    communication

    Uses Non-Personalmass media to reach

    broad audiences to

    connect an identified

    sponsor with a target

    audience

    Five basic

    components:

    1. Paid communication

    2. Sponsor is identified3. Tries to persuade or

    influence

    4. Reaches a large

    audience5. Conveyed through

    impersonal mass media

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    Key Concepts of Advertising

    Strategy

    Creative idea

    Execution

    Media

    The logic and planningbehind the ad

    Advertisers develop ads

    to meet objectives Advertisers direct ads to

    identified audiences

    Advertisers create

    messages that speak tothe audiences concerns

    Advertisers run ads inthe most effective media

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    Key Concepts of Advertising

    Strategy

    Creative idea

    Execution

    Media

    The central idea that

    grabs the consumers

    attention

    Creativity drives theentire field of

    advertising

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    Key Concepts of Advertising

    Strategy

    Creative idea

    Execution

    Media

    Effective ads adhere to

    the highest production

    values in the industry

    Clients demand the bestproduction the budget

    allows

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    Key Concepts of Advertising

    Strategy

    Creative idea

    Execution

    Media

    Communication

    channels that reach a

    broad audience

    How to deliver themessage is just as

    important coming up

    with the creative idea of

    the message

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    Roles of Advertising

    Marketing

    Communication

    Economic

    Societal

    The process a business

    uses to satisfy consumer

    needs by providing

    goods and services Product category

    Target market

    Marketing mix

    Brand

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    Roles of Advertising

    Marketing

    Communication

    Economic

    Societal

    Can reach a mass

    audience

    Introduces products

    Explains important

    changes

    Reminds and reinforces

    Persuades

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    Roles of Advertising

    Marketing

    Communication

    Economic

    Societal

    Moves from being

    informational to

    creating demand

    Advertising is anobjective means for

    providing price-value

    information, thereby

    creating a more rational

    economy

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    Roles of Advertising

    Marketing

    Communication

    Economic

    Societal

    Informs consumersabout innovations andissues

    Mirrors fashion anddesign trends

    Teaches consumersabout new products

    Helps shape consumerself-image

    Perpetuates self-expression

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    The Key Players

    Advertiser(client)

    Agency Media

    Supplier Audience

    Uses advertising to sendout a message about its

    products

    Initiates the advertisingeffort by identifying amarketing problem

    Approves audience,

    plan and budget Hires the advertising

    agency

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    The Key Players

    Advertiser

    (client)

    Agency

    Media

    Supplier

    Audience

    Has strategic and

    creative expertise,

    media knowledge,

    workforce talent, andnegotiating abilities

    Advertising department

    In-house agency

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    The Key Players

    Advertiser

    (client)

    Agency

    Media

    Supplier

    Audience

    The channels of

    communication that carry

    the message to the audience

    Are also companies or hugeconglomerates

    Mass media advertising can

    be cost effective because the

    costs are spread over thelarge number of people the

    ad reaches

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    The Key Players

    Advertiser

    (client)

    Agency

    Media

    Supplier

    Audience

    Assist advertisers,

    agencies, and the media

    in creating and placing

    the ads

    Vendor services are

    often cheaper than those

    in-house

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    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 aspossible

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    Types of Advertising

    Brand advertising

    Retail or Local advertising

    Direct-Response advertising Business-to-Business advertising

    Institutional advertising

    Nonprofit advertising Public Service advertising

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    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

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    What Makes an Ad Effective?

    Effective advertising

    messages will achieve

    the desired impact

    (objective) on the targetaudience

    Award Shows

    EFFIES, AME, IPA

    Judge effectiveness

    CLIOS, One Show,

    Cannes

    Judge creative ideas

    Not all award-winingads are effective

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    The Evolution of Advertising

    Age of Print

    Industrial Revolution and Emergence of

    Consumer Society

    Modern Advertising Era

    Accountability Era

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    The Current Advertising Scene

    Expanded view

    Integrated

    Marketing

    Communication

    Globalization

    Electronic media are

    changing the media

    landscape

    New media are morepersonal and interactive

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    The Current Advertising Scene

    Expanded view

    Integrated

    Marketing

    Communication

    Globalization

    The practice of unifying

    all marketing

    communication tools so

    they send a consistent,persuasive message

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    The Current Advertising Scene

    Expanded view

    Integrated

    MarketingCommunication

    Globalization

    Increasing globalization

    of marketing programs

    Advertisers are moving

    into global markets andagencies are forming

    huge multinational

    operations