intro to advertising - CH1 - advertising perspectives

intro do advertising

1. INTRODUCTION TO advertising Advertising PERSPECTIVE

2. WHAT IS ADVERTISING?? 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 ( Arens , 2006)

3. WHAT IS ADVERTISING?? Structured & composed Creatively well planned and designed Non personal communication Mass communication Paid - Paid by sponsors to TV, radio, newspaper etc to carry the ads

4. WHAT IS ADVERTISING?? Persuasive -intended to persuade people to buy service / products Some are intended to inform Identified sponsors Sponsor / brand will be obvious Through various media Ads reaches us through a channel of communication (medium)

5. P = press ad (newspapers & magz ) R = radio (local & national commercial) O = outdoor (roadside posters, billboards) T = transport/transit (bus, train) E = exhibitions ( incl trade fairs) C = cinema (screen ads) T = television E = electronic (internet) D = direct mall Media used in advertising

6. keypoints Trade advertising Consumer advertising Generic advertising Product advertising Brand advertising Range advertising Corporate advertising Retail advertising Co-operative advertising Direct-response advertising

7. Trade advertising B2B “push and pull”  to motivate trade to stock up products “pull”= encourage customers to go to the shop and buy product – through advertising “push” = selling in products to the trade (wholesalers/retailers) “selling in”= inform trade about saleable products, include advertising in the trade press

8. Trade advertising Trade’s needs  not concern whether product can fulfill their needs or satisfy their wants Only concern if the qualities will make the product saleable  to earn profit and income Called “trade press” Emphasize points which benefit trade rather than consumers Other way – sales call, direct mail & trade exhibition

9. Trade advertising - content Suggested retail price – customers willing to pay Discounts available for bulk purchase May include result of any market research – potential acceptance and demand Additional incentive provided by manufacturer Promotional support planned – launch advertising (budget & commercial schedule), planned sales promotional scheme (try & buy)

10. Trade advertising - content Incentives for retailers and staff (to encourage stock and push product ) POS (point-of-sale) & display material available / in store demonstrations Leaflets & brochures can be supplied Possibility of credit facilities – stimulate purchase & further profit for stockist

11. Consumer advertising

12. consumer advertising - generic Advertising a product type rather than a brand Usually undertaken by a trade association or consortium of manufacturers & suppliers Eg : campaign to promote fresh product like milk, fruit, vegetables Does not promote particular supplier, but promote overall benefits & advantage of product Can also include promotion of service eg : campaign that encourage public to “get the strength of the insurance companies ard u

13. consumer advertising - product Concentrate on benefits & advantages of product eg : price, value & performance In press ad – pack shot is prominence & copy talks about benefits of buying and using product On tvc – product shot usually in last frame scenario which shows the benefit which spelt out in storyline

14. consumer advertising - brand Emphasize on brand name Sometimes little or no reference to the product – esp when there are many products sold under family brand Many products have single brand name – developed reputation over years  goes beyond mere content and benefits Eg : Kit Kat, Mars Bar, Polo – customers loyalty Advertising slogan o ften as famous as brand name (Have a break, have a Kit Kat)

15. consumer advertising - brand Nowadays, manufacturer try to build global brands Eg : Coca Cola – name, logo, bottle can design Some companies use different name in diff countries Some rebrand products in certain countries, with new name without losing sales and loyalty Eg : Snickers in USA and Europe, Marathon in UK

16. consumer advertising - range Manufacturer has complete range of products to suit different needs eg : shampoo Ranges frequently promoted in a single advertisement Range ad suggesting that this brand is the “one-stop shop” for beauty care New products can easily be introduced as range image is transferred to new product

17. consumer advertising - corporate Promote the company not products Differs from brand advertising – company name is not always the brand name Eg : Unilever and Procter & Gamble These companies rely on brand ads to differentiate their products

18. consumer advertising - corporate Objectives : Corporate ad may be used in trade ad  trade recognize that the product has support and confidence of large company – will not risk its reputation Improve customer relations – get customers to accept company – smoothen sales Used for financial advertising – reassure existing shareholders, launch company in stock exchange or attract new investors

19. consumer advertising - corporate Crisis communication – eg : attack by environmental pressure group  to extol virtue of company and feature success achieved Used when research shows that people are unaware of the company’s name and what it does

20. consumer advertising - retail Supermarkets, stores and shops want customers to come into their outlets – not just buy 1 but do all their shopping Objectives : Retailer wants to build traffic build their image especially if there’s strong competition Gain and maintain awareness and market share

21. consumer advertising - retail Message based on what brand and products they have or range of product offered May include additional benefits – convenient location, free parking, late night opening etc Media – national TV, national press, poster. Local newspaper, radio Likely to appear at the end of the week – people shops during the weekends

22. consumer advertising – co-operative Manufacturers and retailers cooperate to do specialist promotion emphasizing particular brand made available only certain outlet Eg : special pack or model (domestic appliances) at certain outlet only Its only for limited period with special offer price or gift Not favoritism because done on regular basis with most stores and most chains – if restricted to particular chain or outlet, other retailer would purchase rival brands

23. consumer advertising – co-operative Media ( promotion with national chain) – national media, local press Media (local store) – local newspaper Media (car) – manufacturer supplies artwork and use agency to buy space in bulk, add dealers name, address, location Other media – leaflet d rops (door-to-door), POS and other display material jointly financed by suppler and seller

24. Direct-response advertising Advertising to customers who deal with manufacturer or suppler without intermediate wholesalers or retailers Customers complete order form in magazines or catalogues or order through phone It is effective for new companies and new products to get into the market place Major selling force in its own right

25. Direct-response advertising Has to work hard to sell products - no face to face press ad with all sales message in one go, tv and radio hv to cover all selling points comprehensively Normally incorporate sales promotion technique (money off discounts) All elements are towards making the buyers commit themselves Mechanism for ordering : Broadcast – free or low cast call Press ad – coupon requires name, address, quantity, colour , size with payment information

26. Direct-response advertising Media – specialist direct marketing tv channels to single interest publication National newspapers – usually during weekends, particularly Saturday & Sunday Products – fairly conventional – products that can cause embarrassment if asked for in shop – eg : large size clothes, not generally in shop, wigs, baldness Conventional - cassette tapes, CDs or books

27. Direct-response advertising Highly effective – companies have done a lot of experiment and continuous experiment with all elements of the message and combination of media Direct mail is popular medium often used by companies that sell through catalogue Catalogue is 2 stage selling  1 st stage = mail shot inviting customers to send off for catalogue 2 nd stage = customers places order