Advertising Chapter 1

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ADVERTISING

Loryly G. Dalogdog, LPT, MBA


MAJOR EXAM
30%

PERFORMANCE TASK
40%

QUIZZES
20%

COMPREHENSIVE SYNTHESIS
10%
Advertising Topics:

Chapter 1-What is advertising


Chapter 2- Consumer Behavior
Chapter 3-The Basics of Marketing
Chapter 4-Product and Price Planning
Chapter 5-Distribution Planning
Chapter 6- Promotion Planning
Chapter 7-Advertising Media
Chapter 8-Effective Advertising and Sales Promotion
Chapter 9-Communicating Effective Advertising and Promotional
Messages
Chapter 10-Management of Effective Advertising
Chapter 11-Consumer Oriented Advertising and Sales Promotion
Chapter 12-The Economics of Advertising
WHAT IS ADVERTISING?

• History of Advertising
• Influences on Advertising
• The Advertising Industry and Careers
1.1 HISTORY OF
ADVERTISING
Goals:

• Explain how advertising has changed to meet the needs of


changing times.
• Describe inventions that have impacted advertising.
THE CHANGING TIMES IN
ADVERTISING
Advertising is not an easy term to define.

HOW WILL YOU DEFINE


ADVERTISING?
Most people think of advertising

√ as an attempt to persuade them


to purchase a good or service.

√ In many cases, advertising


is used to promote the sale of products and
services.

√ However, a corporation may


also use advertising to enhance its image or
to educate consumers
Advertising-is a paid form
communication intended to inform,
persuade and remind an audience to
take some kind of action.
“WHAT YOU
HAVE RIGHT
NOW”
1. Introduce your self
2. Promote your product
Spin
here
Advertising in the Early
Centuries

• Advertising has been around


practically since the begging of
time. Advertisements appeared as
inscriptions on Egyptian tombs
around 3000 B.C.

• The Greeks engraved theater


advertisements in stone around
500 B.C.
• In many parts of South America, Asia, and Africa, stone carvings or
paintings displaying commercial advertisements on old walls have
been discovered.

• Colonial Americans used public message boards in town squares


where merchants could advertise the sale of their services and
goods.
Throughout the 18th century, Ben Franklin greatly influenced
advertising. As the owner of the Pennsylvania Gazette, he
introduced the use of headlines, illustrations, and advertisements
placed next to editorial items. He added pictures to advertisements
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 population was Also during 19th
With the onset of referred to as the century, circus
the Industrial consumer society mogul P.T. Barnum
Revolution in the because it was helped the growth
19th century, there shifting away from outsoor advertising.
was a period of self-sufficiency and He created unique
economic becoming more banners for his
prosperity and dependent in the museum and
rapid growing of marketplace to traveling circus. His
populations and meet its needs. As banners used
urbanizations. a result of the new attention-grabbing
consumer society, headlines such as
advertising “CARAVANS OF
expanded. GIANT COURSING
ELEPHANTS AND
CAMELS,” to draw
crowds to the
events.
20th century, large agencies in London were commissioning artists to produce specific
brief, targeted ad campaigns. Advertisement reflected cultural and social changes. In
the 1920s , advertising as glamorous and promoted consumption during prosperous
times.
During the Great Depression in the 1930s, advertising took a no-nonsense approach,
and laws were passed to prohibit deceptive advertising practices.

1950s, the TV added a whole new dimension to advertising. Typical advertisement


focused on families and new technological advances, such as the automatic washer and
dryer.

1960s and 1970s


advertisements became
more creative and
innovative, reflecting
values that were more
nontraditional non
traditional advertising.
20th century and the early 21st century, advertising become more visual-and youth-
oriented.
Adverting also entered the electronic age. Various forms of advertisements began
popping up on the Internet.
Inventions Impacting
Advertising
Advertising innovators are constantly searching for new ways to communicate
their message to customers. Several inventions over the years have made
advertising more effective.
Four inventions that have influenced advertising include:

1. printing press
2. Radio
3. television
4. Internet
PRINTING PRESS
The invention of printing press made information of all kinds available to general population.
Printing could be spread information quickly and provided platform for advertising. The printing
press was used to produce posters and handouts containing information about good 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. Paul Harvey, a pioneer in radio advertising,
launched Paul Harvey News and Comment in 1951. At one time, his radio show had an audience
of 24million listeners a week, airing on 1, 600 radio stations.
TELEVISION AND CABLE TELEVESION
The invention of television in the 1920s changed everything. Television become a mass
advertising medium in the 1950s when the prices of television sets became more affordable.
Print and radio took a backseat to television because for the first time, commercial were
broadcast with sight, sound and motion.

Cable television, developed in the 1970s was the next great innovation to impact the advertising
industry. It offered more channels with specific program offerings.

Television and Cable television were also the perfect platforms for infomercials. An infomercials is
a lengthy paid advertisement that showcases the ,benefits of a product.
How did the invention of cable television
influence advertising?
An infomercials is a lengthy paid advertisement that showcases
the ,benefits of a product. Infomercial 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 US
Dollar that has overtaken the conventional method of advertising. Chat rooms, blogs, e-mails,
pop-up advertisement, instant messaging and web page notices are just a few of the ways
advertisers can let people who are surfing in the Web know about products and services.
Social networking sites, such as Facebook and Myspace are becoming more popular advertising
venues.
Consumers can use the Internet to access information about a product or service that they want
to purchase.
Internet provides wide exposure for products and services, advertisers will continue to develop
innovative advertising strategies.
1.2 INFLUENCES ON ADVERTISING
• ENVIRONMENTAL INFLUENCES
In recent years, protecting the environment has become a top priority for
many Americans. Because of increased environmental awareness business
are taking notice and making changes to their products and services to help
protect the environment. Advertisement are used as public relations tools to
present business as good stewards of the environment.
Protecting the environment from harmful pollutants, conserving
nonrenewable resources like coal and oil, disposing of water responsibly,
selling environmentally friendly products and using environmentally safe.
• The use of advertising to support and improve the environment is known
as green marketing.
Why is there a green marketing movement in
today’s business?

How is advertising used when environment


disasters occur?
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 product.
• Social responsibility- is the principle that businesses should contribute to the
welfare of society.
• Political Advertising-While advertising is important for political campaigns,
there is no clear agreement on the effects of political advertising on electoral
outcomes.
• What role does advertising play in political campaign?
• Influence of Industry Trade Groups
Industry trade groups, referred to as trade associations, are founded
and funded by business operating in a 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 collaboration between companies to develop
industry standards.

• Consumer Influences
The consumer is the end user of the product or service. The overall
consumer market consist of all buyers of goods and services for personal or
family use.

The consumer behavior describes how and why people make purchase
decision.
• Analyzing Consumer Motivation
Two principal ways to evaluate the motivation behind consumer purchases are:
• by direction (what they want)
• and intensity (how much they want).
Direction refers to what the customers wants from a product.
Ex. A customer is selecting a pain reliever may like the idea that one pain reliever
is priced lower than other similar alternative, what the customer really wants is fast
pain relief.

Intensify is used to determine whether a customer's interest in a product is


compelling enough to motivate them to make the purchase .
Ex. Burger King’s “ Aren’t You Hungry for Burger King Now?”
Getting the Message to Consumers

Historically, advertisers used mass media--television, radio, magazines and


newspapers-as one way channel of communication to consumers.

The latest technology has given consumers greater control over how they
get information about products and product brands. Consumers are in
control of the disbursement of product information whey they use blogs,
which are websites frequented by individuals with common interest. The
facts, opinions, and personal experiences posted by individual on blogs are
emerging as new, sophisticated sources of product and brand information.
1.3 THE ADVERTISING INDUSTRY AND
CAREERS
• 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 peso. 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.
TYPES OF ADVERTISING
• Product advertising-uses rational arguments to communicate why
consumers need specify product by highlighting the benefits associated
with the use of the product. Product advertising presents at least one
product characteristic as a reason for purchasing a product.
Ex. Hyundai advertisements emphasize the 100,000 mile
warranty.
• Brand Advertising-it is an important component in many
advertisements. A brand is the combination of unique
qualities of company, product, or product line. The name,
logo, slogan and design are important elements of the
brand.
• Corporate Advertising-Some companies use corporate
advertising which is intended to enhance a company's reputation or
build goodwill. It is also known as institutional advertising. This
type of advertising does not ask consumers to take specific action,
just to buy a product. instead, it promotes a positive attitude toward
the companies.
• The advertising agency is a marketing business that plans, creates,
manages the advertising for other business. .It also assigned with the tasks of
building campaigns to increase sales of the company's product, to reaffirm
the brand image, to attract customers and to retain the current customers.

• Advertisers- is the client (persons, organizations, companies and


manufacturers of products and services) that needs creative messages
(advertisements) and advertising campaigns to reach target markets.

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