MODULES IN ADVERTISING

(ADVE 20113)

Module 1: What is Advertising?

Objectives:
1. Explain how advertising has changed to meet the needs of changing times
2. Describes innovations that have impacted advertising

Introduction
In this part of module, we will tackle Advertising, its definition and how times
changed advertising to people. This part describes the innovation that have impacted by
the use of advertising in product.

The changing Times in Advertising

o Advertising is used to promote the sale of products and service
o To enhance its image or educate consumers
o Advertising is a paid form of communication intended to inform, persuade,
and remind an audience to take some kind of action.

First signs of Advertising

Advertising has been used to promote trade for centuries. By looking at the
evolution, you can see how its role has changed over the years. Advertising provides a
mirror to our social history that reflects values and aspirations of the culture.

Advertising in the early Centuries

Advertising has been around practically since the beginning of time.
Advertising appeared as in scriptions on Egyptian tombs around 3000 B.C. The
Greek engraved theater advertisement in stone around 500 B.C.
Colonial Americans used public message board in town squares where
merchants could advertise of their services and goods. Throughout the 18 th
century, Ben Franklin greatly influenced advertising. As the owner of
Pennsylvania Gazette, he introduced the used of headlines, illustrations, and
advertisements placed next to editorial items. He added pictures to
advertisement in 1732.
In 1848 it was possible to print 10,000 sheets per hour on a printing press,
so newspaper advertising grew in popularity. The 1870s techniques in color
lithography fueled the poster boom of the 1880s.
Also during the 19th century, circus mogul P.T. Barnum helped spur the
growth of outdoor advertising. He created unique advertising in the form of
banners of his museum and traveling circus. His banners used attention-grabbing
headlines, such as “Caravans of Giant Coursing Elephants and Camels,” to draw
crowds to the events.

Advertising in the 20th and 21st Centuries

By the start of the 20th century, large agencies in London were
commissioning artists to produce specific brief, targeted ad campaigns.
Advertisements reflected cultural and social changes. In the 1920s, advertising

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(ADVE 20113)

was glamorous and promoted consumption during prosperous times. During the
Great Depression in the 1930s, advertising took a no- nonsense approach, and
law passes to prohibit deceptive advertising practices. In the 1950s, the TV
added a whole new dimension to advertising. Typical advertisement focused on
families and new technological advances. In the 1970s, advertisements became
more creative and innovative, reflecting values that were more nontraditional.
The economy was robust in the 1980s, and thus advertisements promoted
consumption.
In the latter half of the 20 th century and the early 21st century, advertising
became more visual- and youth- oriented. Advertising also entered the electronic
age. Various forms of advertisements began popping up on the internet.

Advertising Trends in American History

Advertising has responded to changing business, media and cultural trend over
time. As it evolved, it encouraged Americans to take an active role in a consumer
society.

Early Advertising Trends

Advertisements remained fairly consistent during the early and mid-19 th
century. Newspaper were commonly used for advertising. Typical newspaper ads
were no wider than a single column, and illustrations and special typefaces were
generally not used. Magazine advertisements usually reserved the back pages
for their ads.

Mass Production
In the latter half of the 19th century, at the end of Industrial Revolution,
advertisements changed dramatically. New mass production techniques in the
1880s used assembly lines to create standardized products in large quantities.
Manufacturers began developing brand names to help consumers clearly identify
their products. Large department stores that cropped up in the growing cities in
the late 19th and early 20th centuries joined manufacturers to advertise branded
goods.

Changes in the Advertising Industry

Advertising agencies were founded in the late 19 th century and became a
key component in the advertising process. They grew out of the need to sell
branded products that were being mass produced. Advertising helped consumers
identify the differences between the branded products.
Advertising agencies that were first used only to sell advertising space in
local newspaper and a limited number of magazines were now being called upon
to design copy and artwork for advertisements.

Inventions Impacting Advertising

Advertising innovators are constantly searching for new years to communicate
their message to customers. Four inventions that have influenced advertising include
the printing press, radio, television, and the Internet.
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By Ken Kaser
 MODULES IN ADVERTISING
(ADVE 20113)

Printing Press
The invention of the printing press made information of all kinds available
to the general population. Printing could spread information quickly and provided
a platform for advertising. The printing press was used to produce posters and
handouts containing information about goods and services for sale during the
16th century.

Radio
Advertising could be heard for the first time through the use of radio in the
1920s. the first commercial was broadcast in 1922. Radio programming included
soap operas, music, and serial adventures that often were sponsored by
advertisers. Radio stations and radio advertising grew in the 1930s and 1940s.
Radios appeared in virtually every home in America, and the sales of products
advertised on the air exploded.

Television and Cable Television

The invention of television in the 1920s changed everything. Television
became a mass advertising medium in the 1950s when the prices of television
sets became more affordable. Advertising agencies were challenged to produce
mini movies in units of 30 and 60 seconds. They had to learn how effectively
segment the audience and deliver the appropriate commercial message for the
intended audience.
Cable television, developed in the 1970s, was the next great innovation to
impact the advertising industry. It offered more channels with specific programs
offerings. Advertising could now narrow the demographics of their intended
audiences. Before the advent of cable television, the networks attempted to
reach targeted audiences by airing at different times throughout the broadcast
period. They would air commercials during the evening news to reach an older
audience. Cable television broadcast new channels like MTV that catered to a
younger audience and ESPN for (typically) male sports fan. The Food network
catered to people who loved cooking. These new cable televisions enabled
advertisers to reach out to target audiences who had specific interests.
Television and cable televisions were also the perfect platforms for
infomercials. An infomercial is a lengthy paid advertisement that showcases the
benefits of a product. Infomercials can range from 5 to 30 minutes, or longer, and
often include a product demonstration highlighting the product’s features and
benefits, testimonials from satisfied customers, and before/ after photos for
beauty and fitness products.

Internet
In the 1990s, a web revolution in advertising began. Internet advertising is
now $42 billion industry that has overtaken the conventional methods of
advertising. Chat rooms, blogs. E-mails, pop-up advertisements, instant
messaging, and webpage notices are just a few of the ways advertising can let
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 MODULES IN ADVERTISING
(ADVE 20113)

people who are surfing the web know about product and services. Social
networking sites, such as facebook and twitter, are becoming more popular
advertising avenues.
Advertisements placed on popular search engines allow products and
services to be widely promoted. Consumers can use the internet to access
information about a product or service that they want to purchase. the internet
also allows customers to compare various brands of products and services,
sometimes on a single website, such as the Epinions website.
Online Advertising has presented a challenge to advertisers. They had to
determine the most effective way to deliver their messages on the web. Online
advertising has become more sophisticated over the years, moving from simple,
pop-up ads to elaborate web videos.

Assignment

What inventions had the great impact on advertising? And why?

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Advertising and Sales Promotion
By Ken Kaser
 MODULES IN ADVERTISING
(ADVE 20113)

Module 2: Influences on Advertising

Objectives:
1. Describe environmental influences on advertising.
2. Describe consumer influences on advertising.

Introduction
We should be aware how advertising influence our surroundings. In this part, we
will talk about how advertising influence our environment and consumer and how
creative they did on advertising a product or service.

Environmental Influences
Advertisements are used as public relations tools to present businesses as good
stewards of the environment. Protecting the environment from harmful pollutants,
conserving nonrewable resources like coal
and oil, disposing of waste responsibly,
selling environmentally friendly products,
and using environmentally safe and
sustainable energy sources to meet
business needs are advertising themes
that emphasize businesses’ responsibility
in conserving the environment. The use of
advertising to support and improve the
environment is known as Green
Marketing.
Because of the growing movement
towards environmentally friendly products
and processes, business that use green marketing have an advantage when introducing
their product or service in the marketplace. Advertising can be used to educate
consumers on how products or service benefit the earth or conserve resources.

The Environmental Impact of Print Advertising

Print advertising affects the environment through carbon dioxide emitted into the
atmosphere as a result production and distribution of print media. On average, over 7
billion metric tons of carbon dioxide greenhouse gases associated with print advertising
are emitted into the atmosphere annually by the U.S. advertisers spent over $65 billion
dollars on print advertising and created over 250,000 ad pages in recent years. A single
advertising page for a popular consumer magazine can equal as much as seven tons of
carbon dioxide emissions created from production, printing, logistics and landfill
disposal or incineration of post- consumer and unsold media.
Victoria’s Secret has agreed to reduce environmental impact of its catalog by
using recycled paper and not using paper from endangered forest. John Hardy, a
manufacturer of jewelry and accessories, began the Sustainable Advertising program in
2006. The pilot program was a bamboo reforestation project on Nusa Penida, an island
southeast of Indonesia where the company’s workshops are located. The objective of
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By Ken Kaser
 MODULES IN ADVERTISING
(ADVE 20113)

the project was to sequester the carbon dioxide associated with the company’s print
advertising by planting bamboo, a long lasting wood perennial grass.

Advertising when Environmental Disaster Strikes

Companies associated with environmental disasters are faced with major public
relations nightmares. The British Petroleum Deepwater Horizon explosion on April 20,
2010, killed 11 people and was declared to be one of the worst oil spills on the world.
The three-month oil spill caused major damage to wildlife and Gulf Coast Industries.
BP’s reputation and stock prices took major hit due to environmental disaster.
BP’s advertisements before the Gulf Coast oil spill focused attention on the
company’s commitment to the environment. The advertisements highlighted new
inventions used by BP to conserve energy and the environment. Frequently the BP
commercials highlighted the company’s commitment to communities and individuals.
The company increased the number of markets where it purchased newspaper
advertising from 2 states in 2019 to 17 states in 2010. According to the House Energy
Committee, BP spent $93.4 million – about $5million per week – on newspaper
advertisements and TV spots between April and the
end of July in 2010. Congressional investigation forced
BP to defend its increased spending for advertising
when the businesses of so many Gulf Coast citizens
were shut down during the oil spill clean-up. BP
claimed that the advertising campaign was needed to
inform the public about clean- up efforts and the
compensation claims process. Advertising plays an
important role when environmental disaster strikes. Business must carefully develop
advertising strategies that promote a sense of responsibility.

Social and Political Influences

Advertising is highly influenced by social and political issues. Because
advertising related to these issues can have both positive and negative results,
advertisers must carefully plan their strategies.

Social and Ethical Responsibility

Two goals of advertising include selling a product and maintaining a high public
perception of the company or product. Most companies or industries want to relay an
image of being committed to the well- being of the community. Their advertisements
frequently focus on the company’s or industry’s contributions to the community or
society.
Social responsibility is the principle that businesses should contribute to the
welfare of society. Many businesses now view social responsibility as an opportunity for
growth. 55% of consumers indicated they are more likely to choose a product that
supports a certain cause when choosing between similar products. By advertising its
social responsibility efforts, a business can increase profits. Oftentimes a business will
advertise that a portion of its profit will be donated to a charitable cause.

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Advertising and Sales Promotion
By Ken Kaser
 MODULES IN ADVERTISING
(ADVE 20113)

Political Advertising
While advertising is important for political campaigns, there is no clear agreement
on the effects of political advertising on electoral outcomes. During an election year,
unregulated political advertisements on television and radio are predominant in U.S.
Great Britain prohibits of broadcast advertising by political candidates and regulate their
television advertisements. The number of negative advertisements in U.S. election
campaigns has increased over the years. Negative campaign advertisements involve
criticism of a candidate, a policy position, or past performance. Some of the
advertisements question the character of political candidates. Exposure to
advertisements does influence public perceptions of the candidates. The debate
continues over the effectiveness of negative political.

Influence of Industry Trade Groups

Referred to as Trade Associations, are founded and funded by business
operating in specific industry and are responsible for public relations activities such as
advertising, education, political donations, lobbying, and publishing. The main focus of
trade associations is collaborating between companies to develop industry standards.
Trade groups exert their influence by contributing to the campaigns of political
candidates and parties through Political Action Committees (PACs), producing
advertising to influence public sentiment, and lobbying legislators to support or oppose
particular legislation. Trade group also attempt to influence the activities of
governmental regulatory agencies.
Industry trade groups produce advertisements to promote the views of an entire
industry. Advertisements also are used to improve the industry’s image. The
advertisements mention the industry’s products as a whole, painting the industry in a
positive light to gain approval from its public and to form positive associations with the
industry and its product.
Some advertisements are developed to shape opinions on a specific issue. Ads
against domestic violence, smoking, and drinking and driving use dramatic scenes to
make point. Some industries that manufacture controversial products, such as alcoholic
beverages, produce ads to promote responsible use of the products.

Consumer Influence
The Consumer is the end user of a product or service. The overall consumer
market consists of all buyers of goods and services for personal or family use. More
than 310 million people spend trillions of dollars annually for goods and services in the
U.S. Consumer behavior describes how and why people make purchase decisions.
Advertising is highly influenced by consumer needs and purchase patterns.

Analyzing Consumer Motivation

To effectively sell a product or service, marketers need to determine the major
needs being satisfied by a good or service purchased by consumers. Two principal
ways to evaluate the motivation behind consumer purchases are by direction (what they
want) and intensity (how much they want it). Direction refers to what the customer wants
from a product. Marketers need to understand the principal motivation behind the

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 MODULES IN ADVERTISING
(ADVE 20113)

purchase of a product to develop advertisements that correctly target potential

customers.
Intensity is used to determine whether a customer’s interest in a product is
compelling enough to motivate them to make the purchase. Understanding consumer
motivation is the best way to learn how to increase buyer incentive through effective
advertising.

Getting the Message to Consumer

Historically, advertises used mass media – television, radio, magazines, and
newspaper – as a one-way channel of communication to consumers. The latest
technology has given consumers greater control over how they get information about
products and products brands.
Consumers also exert control over the messages they receive by using digital
video recorders (DVRs) and controllers that have skipping capabilities. Because
consumers now can easily ignore advertisements, advertisers must adapt to consumer
control by using more entertaining and informative advertising. To counter the effects of
DVRs, advertisers are now running televisions programs. As new technology emerges,
advertisers will need to continue to find new ways to get their messages to consumers.

Assignment
Find an advertisement that had an environmental message on the internet. How
did the advertiser benefit from this advertisement?

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Advertising and Sales Promotion
By Ken Kaser
 MODULES IN ADVERTISING
(ADVE 20113)

Module 3: Advertising Industry and Careers

Objectives:
1. Describe the participants in the advertising industry
2. Explain how the advertising industry works

Introduction
In this part, we will know how advertising work in many different form and how
does it affect us in buying a product or service that was being advertised and to know
who are the person participate in advertising.

How the Advertising Industry Works

Advertising is the most effective way to reach consumers and create product/
service awareness. Advertising has become increasingly important as more and more
companies compete for consumer dollars. Companies rely on advertising to drive
demand for their products and services. Developing the most effective advertisements
is a time consuming, expensive process. Successful advertising requires more than a
strong understanding of the product or service being promoted. It also requires
knowledge about psychology, consumer behavior, cultural trends, technology, the
competition, and many more marketing elements.

Types of Advertising
Advertiser include large for non-profit corporations that sell products, or services,
nonprofit groups, politicians, and other types of organizations. Among these various
types of advertisers, there are three common types of advertising.

Product Advertising
Most companies use some form of
product advertising. Product advertising uses rational
arguments to communicate why consumers need a
specific product by highlighting the benefits
associated with the use of that product. Product
advertising presents at least one product
characteristics as a reason for purchasing a product.

Brand Advertising
A brand is an important component in many advertisements. A brand is
the combination of unique qualities of company, product, product line. The name, logo,
slogan, and design are important elements of brand. Brand advertising is used to build
an image based on the set of values held
by the company. Nike is known for
competitive edge and can-do attitude,
which has been communicated through
its “Just Do It” slogan. Through brand
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 MODULES IN ADVERTISING
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advertising, Nike has created a personality in the minds of consumers. Individual look
for brands that match their personalities.

Corporate Advertising
Some companies use corporate advertising, which is intended to enhance
a company’s reputation or build good-
will. It is known as institution
advertising. Corporate advertising
does not ask consumers to take
specific action, such as buy a product.
Instead, it promotes a positive attitude
toward the company.
When GE ran an
advertisement about capturing and
using wind energy through the use of
windmills, it was not promoting a
product. Instead, it was attempting to
associate its name with energy
conservation. Corporate advertising
can also be used by companies to take a stand on important social issues.

The Advertising Agency

Many companies obtain the outside services of an advertising agency to develop
advertising strategies. The advertising agency is a marketing business that plans,
creates, and manages the advertising for other businesses. The primary role of the
advertising agency is to analyze a company’s goals and help it achieve those goals
through well-planned, result-oriented advertising strategies. Advertising agency are also
assigned with the tasks of building campaigns to increase sales of the company’s
products, to reaffirm the brand image, to attract new customers, and to retain current
customers. They are challenged to find ways to present a business’s product and
service offerings in a positive light.
Many companies decide to work with advertising agencies because of the
knowledge, expertise, and talent they can provide. Representatives of the advertising
agency create, strategize, and plan advertising messages to reach targeted audiences.
The first task of the advertising agency is to develop a thorough understanding of the
product to be advertised and the target audience for the product so that an overall
advertising strategy can be developed. Then an advertising campaign is created, and
the advertising agency searches for the most effective types of media to use to promote
the product. The agencies must do all of this while staying within their client’s budget.

Participants in the Advertising Industry

The Advertiser (persons, organizations, companies, and manufacturers of
products and services) that needs creative messages (advertisements) and advertising
campaigns to reach target markets. Advertisers hire advertising agencies to create the
most effective advertisements for target markets. Advertising agencies handle a broad
range of marketing tasks, requiring people with experienced and specialized skills. They
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 MODULES IN ADVERTISING
(ADVE 20113)

offer creative services, media services, marketing research services, account

management services, and production services.
Advertising Agency Services and Careers
Account management in the advertising agency begins with the account
executive who serves as the main link between the client and the advertising agency.
Account executives communicate the client’s objectives to the other team members
and ensure that strategies are carried out on schedule and within budget.
An account planner directs the marketing research efforts involved in an
advertising campaign. The account planner helps the creative team understand “turn
the consumer on”.
Many advertising agencies employ media planers who explore media options to
determine the most effective way to deliver the client’s message at the lowest cost.
The artistic look of the advertisement is the responsibility of the art director,
while the words used in the advertisements are the responsibility of the copywriter. A
creative director oversees and helps guide the creative process to ensure that team
members deliver an advertisement that conveys the client’s message.
The production department for an advertising agency is led by a producer who
manages everything happens after an advertisement is developed.

Media Services and Careers

Although the larger advertising agencies have their own media departments,
many of the smaller agencies outside this task. Outsourcing occur when individual task
is assigned to companies that specialize in planning, designing, and creating
advertisements. Because communication and media options are constantly changing
and becoming more complex, advertising agencies may choose to work with a company
that specializes in media services. A media planning and buying company has the
expertise of placing advertisements where it will reach the right people at the right time
in the right place in a cost- effective way.
There are many more positions within a media company. Executive media
directors oversee management of media planning, including budgets, costs, resource
allocation, and strategic leadership. Group media directors lead overall management
of one large client and/ or multiple clients. Associate media directors are responsible
for the overall service of assigned accounts and media teams.
Executive media buying directors are responsible for management of the media
buying and operations. Media buying directors represent agency’s senior
management on a day-today basis and are involved with negotiations.

Support Organizations and Careers

A boutique advertising agency, also referred to as a virtual ad agency, is a small,
specialized advertising company that outsources many of its service. The primary
objective of a boutique advertising agency is to create brand identification for a product
or service through the use of nontraditional creativity.
Brand specialists may act as consultants to advertising agencies. They are called
upon to identify what makes a company unique in a market flooded with consumer
choices. The brand specialist creates an identity for a product that is to be used
throughout the advertising campaigns.
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Advertising and Sales Promotion
By Ken Kaser
 MODULES IN ADVERTISING
(ADVE 20113)

Social media has provided new opportunities for communicating advertising

messages. Advertising agencies that want to incorporate this new technology trend into
their advertising strategies may outsource projects to social media marketers who have
expertise with Facebook, Twitter, and Youtube. Marketers in this field look ways to use
social media to create buzz about a product.

Assignment
Explain the Advertising Agency

Module 4: the consumer is in charge

Objectives:
1. Recognize the importance of understanding the customer’s wants and needs
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Advertising and Sales Promotion
By Ken Kaser
 MODULES IN ADVERTISING
(ADVE 20113)

2. Identify the 5 step consumer decision making.

Introduction
We should know and be inform at the importance of understanding the
customer’s wants and need for us to have a great business. In this part we will tackle
about it and also the 5 step in consumer decision making.

Understanding the Customer

To succeed, a business must understand its customers, but that isn’t always
easy. The product and service preferences of customers change frequently. Consumer
Behavior describes how consumers make buying decisions, choose among alternatives,
and use products.

Identifying Consumer Needs and Wants

All consumers have needs and wants. A NEED is anything you require for
survival. Abraham Maslow was a psychologist who identified five areas of personal
needs, which are referred to as Maslow’s Hierarchy of Needs. The five levels of needs
in the hierarchy include
physiological, security, social,
esteem, and self- actualization.
Basic physiological needs
(food, sleep, water, shelter, air)
must be satisfied first before
individuals can focus on higher-
levels needs. Once basis needs are
covered, security becomes a high
priority for individuals. After people
have a sense of physical and
economic security, their attention
turns to social needs. Friends, love,
and sense of belonging are all part
of social needs. Gaming respect and recognition form others satisfies esteem needs.
Running for president of student organization might be an attempt to satisfy esteem
needs. Self- actualization involves intellectual growth, creativity, and accomplishment.
WANT is something that is desired. Wants are not essential for living, but they
are important for maintaining a desired lifestyle. Good marketing and advertising create
wants. Flashy advertisements often create an image that attracts consumer.

Scarcity
Personal needs and wants are never ending, but the resources used in the
production of products and services are limited. This is the concept of scarcity. Scarcity
may result in the production of fewer products and services at higher prices. A
consumer’s financial resources are limited by his or her income. Scarcity affects the way
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Advertising and Sales Promotion
By Ken Kaser
 MODULES IN ADVERTISING
(ADVE 20113)

consumers make buying decisions. They must decide how to use their limited income to
buy all things they want and need.

So Many Different Decisions

Every day consumers are faced with buying decisions. Dome decisions require
little or no thought while others are time consuming.

Consumer Decision-Making Process

Consumers usually follow a formal consumer decision making process when
buying products services, especially new or expensive items. There are five steps in the
decision making process:
1. Recognize the problem- occurs when the consumer recognizes a need,
desire, or problem. Advertising can play a big role in this step by triggering
a need. The urgency to satisfy the need plays an important role in the
decision making.
2. Search for information- once the need or problem has been identified, the
consumer gather information about alternative solutions. The extent
search for information depends on your past experiences. When the need
is one you have satisfied before, identifying alternatives may be relatively
easy.
3. Evaluate alternatives- after alternatives have been determined, the
consumer must evaluate them and narrow down the number of choices.
This may involve summarizing information, comparing the benefits of each
choice, and ranking the alternatives.
4. Make the purchase- when an appropriate option has been identified. An
option is appropriate if it will satisfy the need or solve the problem at an
affordable price.
5. Evaluate the purchase- the consumer decides whether the purchase met
his or her expectations and satisfy the need. Marketers are paying more
attention to post- purchase satisfaction. They also make effort to
communicate with customers after a sale to reinforce the buying decision
and to ensure satisfaction.

Types of Consumer Decision Making

1. Routine decision making- is used for frequently purchased, low-cost
products that require little thought. The consumer is familiar with the
products available for routine purchases spends little time searching and
selecting them
2. Limited decision making- takes a moderate amount of time to collect and
compare information about an unfamiliar product or brand. Products that
are more expensive and purchased less frequently often require limited
decision making.
3. Extensive decision making occur when the consumers uses a methodical
decision making process to buy an infrequently purchased product. This
type of decision making is commonly used to buy automobiles and homes.

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Advertising and Sales Promotion
By Ken Kaser
 MODULES IN ADVERTISING
(ADVE 20113)

Consumers are willing to spend time and effort evaluating alternatives to

ensure they make the right decision.

Assignment
Write a post-purchase evaluation for a recent purchase. The evaluation should describe
your product expectations and your satisfaction or dissatisfaction with the purchase.

Module 5: Consumer Purchase Classifications

Objectives:
1. Distinguish between types of consumer purchase
2. Recognize the level of consumer involvement in buying decisions
3. Describe different types of consumer products
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Advertising and Sales Promotion
By Ken Kaser
 MODULES IN ADVERTISING
(ADVE 20113)

Introduction
In this part we will be discussing about the types of consumer purchase and we
will be recognizing the level of consumer involvement in buying decisions and lastly, to
describe the different types of consumer products.

The Buying Decision

Consumers are faced with buying decisions ranging from routine to complicated.
Buying decisions that require little or no little though involve a low level risk while other
decisions that require extensive thought involve higher risks.

Types of Purchases
1. New purchase- involves buying a product or service for the first time. New
purchases tend to be infrequent. Consumers may be inexperienced with
the product or service, making it the most challenging type of purchase.
2. Modified purchase- sometimes consumer realize that products purchased
in the past do not totally meet their current needs. After consumers identify
the product changes or improvements needed, they will make a modified
purchase to meet their new specifications. A modified purchase occurs
when consumer must make new decisions about a product or service that
they have previously purchased.
3. Repeat purchase- purchasing the same products and services over and
over again. This the most common type of purchase and involves routine
decision making. The buyer has identified a product or service that meet
his or her needs and habitually purchases it with little or no thought.

Consumer Involvement in Buying Decisions

The level of involvement, or time to effort, consumers apply to their buying
decision varies for different products and services. Knowing the level of consumer
involvement associated with various products and services is helpful to advertisers.
 When consumers have had a past experience with a product or service,
there is lower level of involvement in making the buying decisions. When a
consumer has a favorite brand of soda, he or she will not spend a lot of
time deciding between the competing brands of soda offered at the
supermarket.
 Consumers’ specific interests can increase the level of involvement in
buying decisions. Consumers who are interested in technology products
will spend more time shopping before purchasing items in this product
category.
 When consumers perceive risk associated with a purchase, they will
become more involved in the buying process. High-priced items can result
in financial risk. Thus, a higher level of consumer involvement is
associated with higher priced items. Psychological risks occur if
consumers experience anxiety about making the right decision.

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Advertising and Sales Promotion
By Ken Kaser
 MODULES IN ADVERTISING
(ADVE 20113)

 Circumstances also can influence the level of consumer involvement in

making a purchase. A consumer may put some more thought into buying
a product or service if it is for a special occasion
 Higher consumer involvement is often associated with purchases that
enhance self-image. If a consumer wants to make a statement or reinforce
his or her image by purchasing a certain product, the buying decision
becomes more relevant. Designer clothing and luxury cars are often
purchased to make a personal statement about the buyer

Types of Products
Each day consumers make purchases ranging from routine to unique products.
1. Convenience products- are purchases regularly without much planning.
Consumers want to purchase convenience products as quickly and easily
as possible. They do not spend too much time shopping and comparing
products and brands that seem to be familiar.
a. Impulse products- are purchased without no advanced planning
b. Emergency products- purchased because of an urgent need
2. Shopping products- consists of products that consumers want to own after
they met personal needs. They are more expensive than convenience
products. Automobiles, homes, furniture are examples of shopping
products. Consumers are willing to spend extra time shopping and
comparing before making a buying decision.
3. Specialty products- are those that have a strong brand loyalty. Consumers
are reluctant to buy substitutes because of their positive past experiences
with the product.
4. Unsought products- are not actively sought out by consumers. This could
be because the consumer is unaware of the product or service.
Advertising in used to increase awareness of the products.

Assignment
What is Consumer Involvement in Buying Decisions?

Module 6: Influences on Consumer Behavior

Objectives:

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1. Discuss consumer buying motives

2. Describe individual, social, and marketing influences on consumer behavior

Introduction
We will be discussing the buying motives and how does it work. We will be
describing the influences in consumer behavior.

Buying Motives
The actions of individuals are influenced by motivation, which is an incentive or a
reason for doing something. Consumer purchases are influenced by short- and long-
term motivation.
Motivation has a direct influence on consumer buying behavior. Buying motives
are the driving forces that cause consumers to buy product and service. Three
categories of buying motives that influence consumer decision include:
1. Emotional Motives- reasons to make a purchase based on feelings,
beliefs, or attitudes.
Consumer purchases
may be influenced by
such things as love
and affection, guilt,
fear, protection,
appearance, prestige,
and popularity.
Emotional advertising
spends more time creating a special experience than describing product
features. Advertising for technology products, such as cellphones, shows
people staying in touch with loved
ones.
2. Rational Motives- not all buying
decisions are based emotions.
Purchases that are based on facts
or logic. Quality, reliability,
convenience, value, and cost are
examples of rational buying motives.
Rational motives are very important
for expensive purchases like homes
and automobiles.
3. Patronage Motives- purchases that
are based on loyalty. Consumer may be loyal to a particular business or a
specific brand. Loyalty results from previous positive experiences or
personal identification with the product or business.

Factors Influencing Consumer Buying Decisions

Understanding what influences consumer buying decisions is essential for the
success of a business.

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 Individual Influences- many buying decisions are influenced by personal

characteristics that are unique to an individual. The characteristics that
make a person unique form that that person’s personal identity.
o Personality- the set of emotion, traits, and behaviors that define an
individual.
 Attitude- is a state of mind or point of view.
 Self- concept- person perceives him or himself
 Lifestyle- examine how a person lives as identified by
material goods, activities, interests, and relationship.
o Gender- Men and Women have different needs, resulting in a
variety of gender-specific products, such as health and beauty
products. Many TV networks target men or women. ESPN air
sporting events primarily watched by men, while the Lifetime Movie
Networks air movies about topics that interest woman.
o Age- consumer behavior is highly influenced by a person’s age.
Wants and needs of individual change as they grow older. A
person’s age influences the types of product and service that he or
she will buy and the product features that are important. Marketers
often categorize their target markets by age groups, such as under
25, 25-34, 35-44, 45-54, and so on. Age is consideration when
creating advertisements and choosing the advertising media.
o Culture and Ethnicity Culture- can be described as the shared
attitudes and behaviors of a specific group. The history, beliefs,
values, customs, and language of a group make up its culture.
Ethnicity is a shared identity with a group of people who have a
common heritage or culture. Cultural and ethnic views and values
have a strong influence on individual choices and decisions.
 Social Influences- buying behavior of an individual is influenced by his or
her social environment. A social environment consists of other individuals
or groups with whom you interact on a regular basis.
o Reference group- an organization or group of people that an
individual identifies with and admires
 Informal reference group- friends, family, coworkers, and
social organizations
 Formal groups- clubs and professional organizations.
 Marketing Influences- consumers have many choices pf product and
services they can purchase to meet their needs.
 Advertising Influences- an advertising campaign is a series of related
advertisements with a common theme or idea that focuses on a specific
product, service, brand, or message. “sell the sizzle, not the steak” refers
to selling the benefits of a product, not its attributes (features). A
successful advertising campaign combines creativity with a convincing
message that appeals to a strong need or want within the target audience.
 Promotional Influence- Promotion is any form of communication that a
company uses to create a favorable image of its products or services.
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Assignment
Find on the Internet an Advertisement (video or picture) that describe
emotional motive and how did you know/tell that it was an emotional motive?
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Promotions are used to introduce demand/action, and increase repeat

sales.

Module 7: The Marketing Concept

Objectives:
1. Explain the marketing concept
2. Define the functions of marketing

Introduction
We should know on how to satisfy the wants and needs of our customer and
because of that we will be discussing the marketing concept and the functions of
marketing.

What is Marketing?
Marketing means different things to different people. Some people think of
advertising when they hear the term marketing. Marketing involves all of the process
used to identify, create, and maintain exchange relationships that satisfy individuals and
organizations. An exchange occurs when people giving up something in return for
something else. When a customer pays money for a product, an exchange has
occurred.

The Marketing Concept

The marketing concept focuses on identifying and satisfying the needs of
customers during the development and marketing of a product or service.

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Focusing on customer needs and wants to develop and market products or

services that are considered better than competitors’ products or services.
 Applying the marketing concept to the planning, production, pricing,
distribution, and promotion of products and services.
 Satisfying customer needs and wants while operating profitability.
Business must conduct research, watch consumer trends, and listen to customer
feedback to produce products and services that will sell.

The Marketing Mix

Is the combination of four marketing elements – product, price, distribution, and
promotion – used by a business. Sometimes the marketing mix is referred to as the 4
P’s Marketing, with place used as the alternate term for distribution.
1. Product- is a good or service produced to meet consumer demand. It is
the central focus of marketing mix. The product or service has to satisfy
consumers’ wants and needs to generate a demand for it.
2. Price- the amount customers pay for a good or service. It plays a major
role in what will be produced and consumed. The availability of a product
can affect prices.
3. Distribution- involves having the product in the right place at the right time.
Distribution also involves the packaging, storage, handling, and
transportation of products. The product packaging and storage facilities
must provide adequate protection so that the product arrives to the
customer in usable condition.
4. Promotion- use promotion strategies to build relationship with customers.
Promotion involves all communications used by a business to create a
favorable impression of its products or services. There are many form of
promotion, including advertising, publicity, public relations, personal
selling, and even word of mouth from satisfied customers.

Marketing Functions
Are related activities that must be completed to accomplish an important
marketing goal.
1. Marketing planning-involves identifying target markets and developing an
effective marketing strategy and marketing mix that will produce a
satisfying exchange relationship.
2. Product and service management- involves creating products and
services that meet the needs of customers. Researching, testing and
gathering customer input are essential activities of the product and service
management function.
3. Distribution- involves determining the best methods and procedures to use
so that customers can locate, obtain, and use a product or service.
4. Pricing- involves establishing and communicating the value of products
and services to customers.
5. Promotion- is the communication of information about products and
services to potential customers.

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6. Selling- is direct, personal communication with perspective customers that

involves assessing needs, explaining how the business’s products and
services can satisfy those needs, and following up to ensure satisfaction.
7. Marketing-information management- involves collecting and managing the
information needed to make marketing decisions. Accurate and current
information about changes and trends in the market are vital to a
business’s success.
8. Financing- has 2 components. First businesses must budget to ensure
they have the financial resources needed to carry out their marketing
strategies. Second, business may need to provide financial assistance to
customers to enable them to buy products and services.
9. Risk management- involves identifying potential risks associated with
marketing decisions and activities and developing a strategy for dealing
with and reducing the risks.

The Marketing Plan

is a written description of the marketing objectives and the planned marketing
strategies and activities required to meet those objectives. A marketing plan contains
detailed information about how the marketing functions will be carried out.
Assignment
Explain the marketing functions

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Module 8: The Target Market

Objectives:
1. Define target market
2. Explain the process for selecting target market

Introduction
Businesses should have target market that can help them to determine on who
they will be selling for. In this part we will discussed target market and to explain the
process for selecting target market.

What is a Target Market?

Every business has a target market, which is a specific group of consumers to
whom the business wants to sell its products or services. The target market may be
defined in terms of age, gender, income, level, ethnicity, religion, location, or lifestyle.
To identify the target market, a business creates a profile of typical customer who is
likely to purchase its product or services.

Building Success Using Target Markets

A business’s marketing and sales initiatives are based upon identified target
markets. It is very difficult to take steps to connect with potential customers without a
clear understanding of who is likely to be interested in the products and services offered
by the business.
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Businesses spend a lot of time and money on research to identify target markets
and the products and services demand by those target markets. Based on the market
research data, a business can make changes or improvements to its product before it is
offered in the marketplace. It can also develop new product lines to increase the size of
its customer base.
The task of identifying a target market is an ongoing process for businesses of all
sizes. Even businesses that have a strong presence in several markets will be on the
lookout for emerging markets where they can reach new customers. By exploring the
appeal of their products in various target markets, business can determine if expansion
into other markets would be successful.

Target Market Strategies

There are various target market strategies businesses can follow:
1. Undifferentiated strategy- viewing the market as one big market rather
than as segmented markets. One marketing mix is used for the entire
market. This strategy lowers marketing costs but increases the dangers of
competition.
2. Concentrated strategy- is used for niche market, which is smaller market
that has a unique set of needs. A business concentrates on satisfying the
needs of a narrowly defined market segment by using one highly
specialized marketing nix.
3. Multi-segment strategy- choose to serve two or more target markets. A
business may offer different products for different target markets. A
business may also offer the same product or service to different target
markets. It helps protect businesses from sudden changes in customer
changes in customer tastes or financial conditions that affect an entire
target market.

Selecting a Target Market

The target market should be described in as much detail as possible based upon
the product or service offered by the business. Some questions that should be
addressed about the target market include the following:
 Are the target customers is male or female?
 How old are the target market customers?
 Where do they live?
 What do they do for living?
 How much money do they earn?
 What other aspects of their lives matter?
 What needs or wants will product or service satisfy?
 What price are they willing to pay for the product or service?
By answering these questions, a business can define the target market, develop
a product or service that will meet the needs of the market, and create a marketing mix
that appeals to customers.

Effective Target Markets

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Can help a business grow by bringing in new customers and retaining current
ones. An effective target market has the following characteristics:
1. People in the target market have common, important needs and will
benefit from the use of business’s product or service.
2. People in the target market can afford the product or service.
3. The demand for the product or service by the target market is high enough
to produce a profit.
4. There is adequate data available about the target market that can be used
to create an effective marketing mix.

Target Market Examples

The importance of target markets is evident in some of today’s most well-known
products. Businesses have built success on selecting the right market.
The Youth Market- PepsiCo used target analysis to broaden the audience for its
Mountain Dew brand. From its early beginnings in Tennessee, Mountain Dew acquired
a “hillbilly” image through the use of its hillbilly mascot pictured on the bottle and its
slogan “Yahoo Mountain Dew!” Entering new markets was a challenge. In 1990
Mountain Dew sponsored the X-Games, which is an annual event focusing on action or
extreme sports that are popular with youth. It was during this time that the slogan “Do
the Dew” was introduced. Advertising campaigns began targeting urban youth by
featuring hip-hop music artist Busta Rhymes in a variety of extreme-sports antics. The
campaign was a hit, and sales increased in inner-city markets. Mountain Dew continues
to target the active youth market by airing action packed, high energy commercials and
using online ad campaigns and contests.

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Assignment
Explain the target market strategies
Explain target market

Module 9: Market Segmentation

Objectives:
1. Differentiate between market segmentation and mass marketing
2. Describe market segmentation categories
3. Explain how to select market segments that have market potential

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Introduction
We should be informed on the groups that we will be selling our product or
services to. In this part, we will talk about market segmentation and mass marketing.

Market Segmentation VS. Mass Marketing

A market segment is a subgroup of individuals within a larger market who share
one or more characteristics. Because individuals in a market segments share similar
characteristics, they tend to purchase similar products and services.

Market Segmentation and Target Markets

Market segmentation is the process of dividing a large group of consumers into
meaningful subgroups based on identifiable and similar characteristics and needs.
Business rely in market research and marketing information to identify market
segments. The market segments are analyzed, and a target market is selected.
There are many advantages of market segmentation. By customizing a
marketing mix based on the needs of a specific market, customer satisfaction rises,
leading to increased profits. This helps offset the higher marketing costs associated with
the market segmentation process.

Mass Marketing
Is an attempt to appeal to a large, general group of consumers. A company that
uses market segmentation focuses its efforts on a specific group of consumers with
unique needs. A company that uses mass marketing directs its efforts to the whole
market in order to reach the largest number of consumers. Mass marketing is more
commonly used for products and services that everyone tends to buy, such as soap,
snacks, and household cleaners.
There are some benefits of mass marketing. The business can reach a larger
audience, gain wider exposure, increase sales volume, and lower marketing costs.
Mass marketing involves developing one marketing mix for all consumers, which can be
risky when trying to appeal to a diverse group of customers with different needs.
Mass marketing can be effective for large companies that have volumes of
production and that sell to domestic and international markets.

Customer Profile: Types of Segmentation

A market segment consists of individuals with similar characteristics. Marketers
can examine various segmentation data to build a customer profile. A customer profile
is a description of the characteristics exhibited by an individual who is likely to buy a
business’s products or services that will meet specific wants and needs.
1. Geographic Segmentation- is based where consumers live. Market
segments could consist of a particular zip code, section of the country, or
part of the world. This form of segmentation believes that individuals who
live in the same geographic area might have the same wants and needs.
2. Demographic Segmentation- include consumer characteristics such as
age, gender, race, marital status, income, education level, and occupation.
Types of music, housing, restaurant menus, and automobiles are

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developed to meet the needs and wants of different demographics.

Demographics offer an abundance of useful information about consumers.
3. Psychographic Segmentation- describe consumers based on their
interests, attitudes, opinions, and lifestyle. Psychographic focus attention
on the way people spend their time and the motives behind their actions.
Lifestyle and social interests influence the types of products and services
offered to a market segment. Information about the lifestyle of a target
market is valuable for creating advertisements that connect with
consumers.
4. Product Usage Segmentation- refers to the amount of a product
purchased and used. Product usage information can help determine the
value of a market segments. Consumers may be first-time users, light
users, or heavy users. Marketers focus their attention on heavy users and
try to change first time and light users into heavy users. Product usage is
rewarded through customer loyalty programs that offer special pricing and
deals only to loyalty program members.
5. Benefit Segmentation- groups consumers based on specific benefits they
expect to receive from a product or service. Benefit segmentation focuses
on the consumer’s needs and wants more than any other types of
segmentation. Benefit segmentation can be used to create effective
advertisements that focus in the benefits desired by selected target
markets.

Selecting of Market Segments

Market segmentation groups consumers based on these similarities. This allows
business to gain a better understanding of a specific market and its potential customers,
which results in the development of a more effective marketing mix.
Identifying Market
A business must identify market segments and target markets before it
can create an effective marketing mix that will reach customers. Steps for
identifying market segments are as follows:
1. Select a market or product category to study.
2. Choose a basis for segmenting the market.
3. Collect and analyze data.
4. Identify market segments
5. Select the market segments with the most potential

Analyzing Market Potential

Market potential is based on profitability. Factors that determine whether a
market segment has strong potential include the following:
1. The market is measurable. Geographic, demographic, and
psychographic data are readily available for analysis.
2. The business is capable of producing a product or service at a price
that meets customers’ wants and needs.

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3. The market segment must have many potential customers and the
potential for growth.
4. The market segment is accessible. There are specific advertising
media, such as magazines or websites, that the target likes to use,
making potential customers easy to reach.
5. The business can serve the market segment more effectively than
competitors can.
Even if a business determines that it can serve the market more
effectively than its competitors can, it is highly unlikely that the
business will capture all the customers in the market.

Assignment
Differentiate market segmentation and mass marketing

Module 10: Product Development

Objectives:
1. Identify the stages of new product development
2. Explain the various levels of products and the components that make up the
product mix

Introduction

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In starting a business, we should be aware on how to develop a product and how

to know if this will be effective. In this part, we will tack the stages of new product
development and describe the different forms of levels of products.

It Starts with a Product

A product is a good or service produced and sold to consumers or other
business. The product must be useful to customers and satisfy their needs. There are
many existing products on the market. The product development process often starts
with a new product.

New Products
Can mean different things to different people. When products that have been
sold in specific markets enter new markets, they are often classified as “new.” A
business that she had success with product in its home country may decide to sell the
product globally. Discovering a new use for an existing product can result in a “new
product” for new markets.

Stages of New Product Planning

When developing a new product, the business must specify the characteristics
of the product and identify how those characteristics will meet the needs of the target
market. There are 6 stages in the product development process.
1. Generate ideas- finding ideas for new products is the most difficult stage
in new product planning. Ideas comes from many sources. They often
originate from problems that customers have that cannot be solved with
products that are currently on the market. Business must gather
information from consumers and involve them in the development
process.
2. Screen ideas- after new product ideas have been identified, the second
stage of the product planning proves involves, carefully screening the
ideas. Business must reject ideas that are not workable for any reason.
Factors to consider during the screening includes:
i. Sales and profit potential
ii. Production costs and time
iii. Legal and safety issues
iv. competition
3. Prepare a business analysis- product idea that survive the screening will
move on to the next stage - the business analysis. The business is much
more detailed study of some factors examined in the product screening
process. It is used to determine the size of the market, costs of production
and marketing, and sales and profit projections. Market research plays an
important role in this stage because markets, competition and costs must
be studied.
4. Develop a marketing strategy- when a business determines that a product
idea is realistic, a sample marketing strategy is created. Research is
conduct during this stage to identify a target market and to ensure there is

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demand for the product. Marketers should decide on the product’s

packaging, branding, and labeling.
5. Develop and test the product- if research and analysis indicate that a
product idea has a good chance of success, it will enter the development
stage. The development stage can take many years and can be very
expensive. The production process often involves many team members,
including researchers, marketers, engineers, and production employees.
6. Market the product- introduction of the new product into the market is the
final stage. This stage requires extensive program. All of the marketing
mix components must be carefully planned. Manufacturers must produce
the product, transportation companies must ship the product, wholesalers
must store the product, advertising agencies must promote the product,
and retailers must sell the product.

Product Mix
The product mix, or product assortment, includes all of the different products a
business sells.
Product Levels
A business’s product mix often begins with a basic product. Consumers
are familiar with the basic product and know how it meets their needs. The basic
product is very similar to products offered by competitors.
A business may try to meet the needs of several target markets by
enhancing its basic product. An enhanced product includes features and
options that increase the usefulness of a product.
A business may try to increase customer satisfaction by offering an
extended product. An extended product may be in the form of services or
complementary products. Guarantees, warranties, product usage
recommendations, and additional products that improve the use of the primary
product can help the customer get the most value from his or her purchase.

Product Mix Components

Whether a business offers only one product or an assortment of products, there
are three things it must consider when developing its product mix:
1. Product line- is a group of closely related products with slight variations
developed by the same business. A business that manufactures
dinnerware may offer a wide array of colors, levels of quality and prices.
2. Package and label- the two main functions of the package are protection
there is a risk of damage to the product as it is shipped and stored.
Packages should protect the product. Packages also should use design,
colors, and shapes to attract consumers’ attention and differentiate
products from competitors’ products. The label, which contains information
about the product, is an important part of the package. The label has two
functions – promotion and distribution. The product’s brand name and logo
are prominently displayed on the label. But the label also contains product
information such as ingredients and care instructions.

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3. Brand- is the combination of unique qualities of a company, product or

product line. It is the main way business differentiate their product from
competitors’ products. A trademark grants a business the exclusive right
to use a brand name, symbol or design. A licensed brand is well- known
brand owned by one company that is sold for use by another company.
Business use brands to help create awareness of their products and to
increase the likelihood of a sale.

Assignment
Why would a business license the use of its brand to another business? Give an
example of a licensed brand.

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Advertising and Sales Promotion
By Ken Kaser