William Wells - Advertising. Principles and practice. Golden Arches Update

CHAPTER STRUCTURE

• 
  What makes a successful advertisement?
• 
  World of Advertising
• 
  Five participants in the world of advertising
• 
  The evolution of advertising
• 
  Current problems of advertising

After reading this chapter, you will be able to:

• 
  Discuss the components of successful advertising.
• 
  Describe advertising and identify its nine types and four roles.
• 
  Recognize the five players in the world of advertising.
• 
  Explain how key figures and events in advertising history impact advertising today.
• 
  Summarize the current problems in advertising.

As we will see in Exhibit 1, the strategic communications solutions that White Star Line used to launch the Titanic focused on promoting luxury, admiration, celebrity, and the ship itself was advertised along with other firms' products. This shows how much work is required for advertising campaigns.

EXAMPLE 1 Titanic sale

Perhaps, after Noah's Ark, the Titanic is the most famous ship in history. How did the Titanic shipwreck become the Titanic phenomenon?

In 1907, J. Bruce Ismay, manager of the White Star Line, one of the most famous companies shipping, met with Lord William James Pirrie, owner of Harland and Wolff, a British shipbuilding firm, to discuss strategy for competing with other shipping companies. The strategy called for the construction of three huge Olympic-class steamships, large enough to cater to two growing markets: immigrants who needed cheap and safe passage to America, and wealthy people. Wealthy people could afford expensive apartments on the Titanic: $4,000 or more—about $85,000 today—for a ticket from England to New York. The size of the Titanic made it the largest moving object in the world, and its luxury captured the imagination of the public: Turkish baths, elevators, swimming pools, gold and marble, interiors from different historical eras. The building has become a place of pilgrimage for tourists. On May 31, 1911, more than one hundred thousand people watched the launch of the Titanic from the Harland and Wolff shipyard in Belfast, Ireland.

During the time between the Titanic's launch and her maiden voyage in April 1912, the White Star Line's advertising staff worked tirelessly in England and New York to publicize when the ship would sail, where it would be from, how much a ticket would cost, and advertising campaign in order to sell tickets. At one time, they prepared materials promoting the launch of the Titanic as an event of global scale: for example, a series of color postcards demonstrating the power and size of the Titanic. One of them compared the Titanic to the wonders of the world.

The Titanic spawned several joint advertising campaigns with companies wishing to be associated with a technical miracle: an example is the Liverpool-based Wilson's Cooking Apparatus, which supplied the Titanic with kitchen equipment. Also involved in the promotion of the Titanic was Captain Edward J. Smith, a skilled sailor who was famous for working for the White Star Line for a quarter of a century and would be on the Titanic for his last Atlantic crossing and retirement.

But absolutely fantastic fame came to the Titanic after its death. Colliding with an iceberg, it sank after 2 hours and 40 minutes. Sixteen manned rescue boats (and four collapsible ones), many of them incomplete, kept approximately 700 passengers alive; more than 1,500 died. Enough people survived to report the disaster in detail to the insatiable newspapers, which at that time had just been equipped with a telegraph. "Titanic" became one of the first major sensations in the twentieth century reflected in the media.

Since 1912, each new generation has retold this story. And every generation produces products associated with the name of the Titanic. The Titanic, as a phenomenon, sailed safely into the third millennium.

Think about it:

• 
  What types of advertising and other types of market promotion of Titanic did White Star Line use?
• 
  What was White Star Line's strategy in developing the Olympic class ships?
• 
  How does the evolution of Titanic-related products and services help us understand the history of advertising?

Was it successful? advertising campaign"Titanic"? The planning, creation and execution of each individual advertisement defines very specific aspirations. And to reach the consumer, it must work together with other forms marketing communications. The advertising and popularity of the Titanic attracted the attention of the whole world and helped sell all tickets for the first voyage. But, to be honest, we are not sure about the success of this advertisement.

Only the advertiser (and his advertising agency) knows whether the advertising campaign achieved its goals and was truly successful. Only successful advertising - the main theme of our book - helps the advertising customer achieve his goals.

Is an advertisement recognized as the winner of a competition always successful? To answer this question, let's look at one example. A sample from industry publication Advertising Age shows that best advertising 1997 VW "Sunday Night" ad parodying the television show Seinfeld - does not convey any information. According to one reviewer, she won the award for her "expressiveness, wit, reasoning, obsessiveness and, above all, for what she didn't say."

However, an advertisement is successful to the extent that it achieves its objectives, not because it wins prizes. This does not deny the value of creativity, which often forms an essential part in achieving the actual objectives of advertising. But creativity in itself does not lead to the creation of successful advertising. Think about it. Would the company consider the commercial successful if the VW Golf's sales decreased as a result of the advertising campaign? (In fact, sales increased, as we will see in Chapter 13).

Good or successful advertising operates on two levels. First, advertising must satisfy consumers' goals by attracting them and delivering relevant information. At the same time, advertising must serve the goals of the customer. For now, remember that the goals of the advertiser and the consumers are different. The advertiser is responsible for ensuring that the goals of both parties are aligned.

Initially, consumers are interested in watching advertisements for entertainment or to satisfy curiosity. If the ad is exciting enough, he may remember it. He may then conclude that the advertisement is relevant to his own needs and provides him with important information about how to satisfy those needs. Advertising can also encourage consumers to try something new by showing them how to do it in a convenient way. Advertising can increase a consumer's determination to purchase a product or remind him of how his needs were met in the past.

The advertiser's goals are different. Ultimately, advertisers want consumers to buy their products and services. To motivate a consumer to take action, they must gain his attention, be able to provide him with sufficient information and convince him to change his purchasing behavior, i.e., try their product and settle on that choice.

To win, the advertiser must understand the consumer well enough to provide him with the necessary information when required. In addition, the advertiser must understand how the consumer's goals change as he receives advertising information and what type of advertising delivery he uses or prefers. All of these actions increase the advertising's chances of achieving excellence.

Strategy

Every successful ad has a solid strategy. The advertiser develops advertising to achieve specific goals and carefully directs it specific audience, creates a message that meets the most important interests of that audience, and launches it into those media (print, broadcast, Internet, etc.) that will reach the selected audience most effectively.

Practical advice

• 
  increase in sales;
• 
  changes in consumer behavior;
• 
  increasing brand awareness.

Creativity

Creative concept is the central idea of ​​how an advertisement can capture attention and be remembered. Each of the advertisements we have already discussed has a main idea that is original and creative.

A concern for creative thinking powers the entire field of advertising. Strategy planning calls for creative problem solving; research efforts are creative; purchasing advertising time or space, choosing the moment to place advertising also require a creative approach. The advertising industry is considered a field of inspiration precisely because it constantly requires creativity in the choice of media and advertising content.

Execution

Finally, every successful ad is well executed. This means that individual details, techniques used and product value characteristics are presented in the finest harmony. Many of the techniques involved are experimental, such as the use of the popular computer graphics software package "ADOBE" in Louie the Lizard's Budweiser commercial.

However, in this advertising too, the quality of execution is more important than the technology used. AT&T's commercials call for a warm emotional connection with a subtle emotional effect. This advertisement awakens feelings without being overly sentimental or pretentious.

Good advertisers know very well: “how to say” is no less important than “what to say.” What you say comes from strategy, and how you say it comes from creativity and execution. Strategy, creativity and execution are the three ingredients that make advertising effective. A successful advertisement must have these three qualities: the right strategy, an original creative concept and execution that is most suitable for conveying the advertising message to the audience.

Final warning: It is very easy to judge the creative concept and execution of a particular ad and call it a success. However, the final test of an advertisement is whether it achieved its objectives: this information is not always available to the consumer or observer. Be aware that trying to evaluate advertising without real-time information is risky.

What is advertising? What are its most important parameters? The standard definition of advertising includes six elements. First, advertising is a paid form of communication, although some types of advertising, such as social advertising (PSA), have free space and time in the funds mass media. Secondly, the news conveyed in the advertisement is not only paid for by the sponsor, but also identifies him. Thirdly, most advertising tries to persuade the buyer to do something or influence him, that is, to convince him to do something, although in some cases it is aimed only at introducing the consumer to a product or service.

Fourth and fifth, an advertising message can be transmitted by several different types media to reach a large audience potential buyers. Finally, since advertising is a form of mass communication, it is not personalized. Thus, full definition the concept of advertising is impossible without indicating all these six characteristic features.

Ideally, every product manufacturer would like to speak personally with each customer about the product or service being offered for sale. Personal selling is coming close to realizing this idea, but it comes with significant costs.

Transactions concluded with sales representatives, can result in additional costs for the customer in excess of $150 each.

Although advertising carried out using interactive technology can be considered more personal communication than mass communication, personal selling is still a long way off. By using interactive media such as the World Wide Web, advertisers can increase their sensitivity to the needs of the mass consumer, but this is not the same as meeting with each consumer individually to discuss a product or service. The important thing here is that interactive advertising reaches a wide audience just as much as regular advertising.

The costs of time in broadcast media and space in print media are spread across the vast number of people to whom these media are available. For example, $1.2 million may be perceived as a prohibitive expense for a single ad during a Super Bowl game. However, if you consider that the advertiser thus reaches an audience of more than 500 million people, his costs do not seem excessive at all.

Most examples of advertising are national consumer advertising; its other name is advertising trademark. The focus of this advertising is on creating an image and ensuring long-term brand recognition. All her efforts are subordinated to the desire to build a clear idea of ​​the brand of a product. The White Star Line associated the Titanic brand with power, scientific wonder and unparalleled luxury.

Trade and retail advertising is local in nature and focused on a retail outlet or service enterprise where a wide variety of products can be sold or offered certain services. Its messages advertise products that are available locally, encourage the flow of shoppers or service users to the advertised location, and attempt to create a highly visible image of the location. Trade and retail advertising focuses on price, availability of goods or services, location of the point and opening hours.

Politicians use advertising to encourage people to vote for them, so it is an important part of the political process in the United States and other democracies that allow advertising of candidates for elected office. While such advertising is an important source of communication for voters, critics are concerned that political advertising tends to focus more on building a politician's image than on the controversial issues that candidates are competing against.

Another type of advertising, called directory advertising, is necessary for people to be able to find out how and where to purchase a certain product or get a necessary service. A well-known form of such advertising is the Yellow Pages, although, as we will see in Chap. 9, many other directories successfully perform the same function.

Direct response advertising can use any advertising medium, including direct mailing, but differs from national or trade-retail advertising in its attempt to stimulate direct, made-to-order sales. The buyer just needs to respond by phone or by mail, and the goods will be delivered to him in one way or another.

Business advertising includes messages sent to retailers, wholesalers and distributors, as well as industrial buyers and professionals such as lawyers and doctors. Business advertising is usually concentrated in business, industry and professional magazines, contains clear, technically rich text and illustrations, which is typical for this type of advertising.

Social advertisement conveys a message that promotes something positive, such as not drinking while driving or encouraging good treatment of children. Advertising industry professionals create it for free, and space and time in the media are also provided on a non-commercial basis.

Interactive advertising is delivered to an individual consumer with a computer and Internet access. Advertising is placed on Web pages, banners, etc. In this case, the consumer can respond to the advertisement, modify it, expand it, or not pay attention at all.

So, we see that there is more than one type of advertising. In fact, the advertising industry is wide and varied. All types of advertising require creative, fresh messages that are strategically structured and well executed. We will discuss each type in more detail in subsequent chapters.

• 
  marketing;
• 
  communication;
• 
  economic;
• 
  social.

Marketing- These are the activities carried out in a business to satisfy the needs and wants of the buyer through goods and services. The specific customers to whom a company directs its marketing efforts form target market. Marketing tools include the product, its price, the means used to deliver the product (place of sale). Marketing also includes a mechanism for transmitting information to the buyer. This mechanism is called marketing communications or promotion. The four tools listed are generally defined as the marketing mix or 4Ps of marketing.

Marketing communications consists of four related modes of communication: advertising, sales promotion, public relations and personal selling. In the case of the Titanic, White Star relied on traditional advertising, public relations (news coverage), special events (breakfast) and celebrity guests (Captain E. J. Smith). Advertising is therefore just one element general program The company's marketing communications, although the most visible.

Communication role

Advertising is one of the forms of mass communication. She transmits Various types information aimed at achieving understanding between sellers and buyers. Advertising not only informs about the product, but at the same time transforms it into a certain image, which becomes inseparable in the buyer’s mind from the actual information about the properties of the advertised product.

Economic role

There are two systems of views on advertising. The first, the theory of market power, considers advertising to be a means of persuasion that increases product differentiation and reduces consumer willingness to use similar products from competing firms. According to this belief system, advertising reduces the price elasticity of demand. As a result, advertising for a small restaurant chain, such as Ruth's Chris Steak House, will focus on the quality of the products, wide range and a pleasant atmosphere and will try to avoid mentioning prices or discounts.

Another approach, economic information theory, suggests that price elasticity promotes consumer awareness of the quality of close substitutes for a given brand. The basic assumption of this advertising-information model is that advertising informs about alternatives and increases price elasticity so that a small change in price leads to a large change in demand. In this case, Ruth's Chris Steak House advertising would be most effective by emphasizing the price, either explicitly or implicitly - "Still the best price on a steak!"

Economists and marketers have not yet given a strong preference to either approach. However, in a recent study, Anusree Mitra and John Lynch assessed these theories as they applied to three consumer groups. The results obtained support both approaches. The study found that advertising not only informs about existing substitutes, it also provides consumers with memory cues so that they consider more substitution options at the time of purchase.

In addition, advertising can increase price elasticity by increasing the number of well-known similar brands. How? The more brands consumers have to choose from, the more price-sensitive they become. The study found that, contrary to the market power school of thought, where consumers need to rely on their memory to come up with alternative decisions, advertising can increase price elasticity. And where consumers receive information at the point of sale, the practical effect of advertising may be to reduce price elasticity, which is consistent with the above-mentioned school of thought.

An example of the first type of market would be basic kitchen equipment: refrigerators and stoves, i.e., goods purchased on an irregular basis, the advertising of which contains the latest data. The second type of market is represented by a regular supermarket, where products such as bread, cereals and eggs are purchased frequently.

Social role

Advertising also does social role, and not just one. It informs us about new or improved products and teaches us how to use these new products. It helps to compare products and their features, allowing the buyer to make an informed purchasing decision. It reflects trends in fashion and design and contributes to our aesthetic ideas.

Advertising has the ability to flourish in a society that enjoys a certain level of economic abundance, that is, where supply tends to outpace demand. At this heyday, advertising moves from simply providing information services (telling customers where they can find the products they need) to messages that create demand for a particular brand.

The interesting thing is this: does advertising follow the trend or is it itself the leading link? Does advertising cross the line between reflecting public values ​​and creating them? Critics insist that advertising continually crosses this line, targeting vulnerable groups such as teenagers too heavily. The growing power of advertising in terms of money (we spend more each year on educating consumers than on educating our children) and in terms of dominance in communications (the media can no longer survive without the support of advertising) leaves no doubt.

Can advertising manipulate people? Some argue that advertising tells people how to behave. They believe that even if individual advertising fails to determine our behavior, the cumulative effect of non-stop advertising on television, radio, print and everywhere outside our doors can have an overwhelming effect. In the article "Principal Issues" we will look at the role of advertising in the increased popularity of socially disapproved behavior - smoking cigars.

There is no conclusive evidence of the manipulative power of advertising because there are too many other factors influencing our choices. In addition, advertisers are not objective and often, for their own benefit, distort or do not include certain information in advertising messages. Manipulation and other ethical issues will be discussed in more detail in the next chapter.

• 
  Information about a brand or product. Advertising often does not contain detailed information, but providing the consumer with relevant information to help them make a decision is still its main function. The type of information depends on your needs target audience. For example, in the case of buying a new suit, they may only contain the price and address point of sale. The American Dairy Association simply tells us: "Drink milk." Advertising for technology is usually very detailed.
• 
  Inspiration to action. In many cases, consumers are reluctant to change established habits. Even if they are somehow dissatisfied with the product or service they are using, they are already accustomed to this product, and it seems difficult for them to learn about something new. Advertising invites the consumer to switch to a new brand by presenting its arguments using inscriptions and drawings. Benefit, quality, more low price, guarantees or attracting celebrities - all methods are possible.
• 
  Reminder and reinforcement. It's amazing how many advertisements are sent to consumers every day. Since they quickly forget why they bought a certain brand of microwave oven or car, advertising must constantly remind them of the brand name, its benefits, its cost, and so on. The same messages act again, inviting you to buy the product again. Most TV advertising seems to serve this function.

In addition to defining the essence of advertising in terms of types, various roles and functions performed, one can also approach this definition in terms of the actors in the process of bringing advertising information to the buyer. Here are five major players in the advertising world:

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  advertisers;
• 
  advertising agencies;
• 
  mass media;
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  intermediaries;
• 
  audience.

Advertising begins with the advertiser - the individual or organization who usually initiates the advertising process. The advertiser makes decisions regarding who the advertisement will be intended for, what means of message delivery to use, determines the advertising budget and the duration of the advertising campaign.

We can only roughly estimate annual advertising costs. In addition, expense categories become more complex, and estimates become less accurate. Robert J. Cohen, senior vice president and chief forecasting officer at McCann-Erickson Worldwide, which is considered the most trusted source on ad spending, admits it's a guessing game. However, he estimates total advertising spending for 1998 at $200 billion in the United States and $418.7 billion worldwide.3

IN modern conditions The ranks of advertising organizations are constantly changing. Currently, McCann-Erickson Worldwide is the largest consolidated agency with $12.8 billion in revenue, and J. Walter Thompson Co. is the largest single agency with $2.7 billion in revenue. Specialty agencies (those focused on a single industry, such as healthcare or banking) are growing twice as fast as general agencies.

The advertiser uses a third-party agency because it is confident that it will be more efficient and productive in creating a single commercial or an entire advertising campaign. The strengths of a successful agency lie primarily in its resources, creative expertise, staff talent, media knowledge, advertising strategy and ability to handle client affairs.

Most large companies have their own advertising department. Responsibility for advertising activities lies with the advertising manager, advertising director or head of advertising, who usually reports to the marketing director. In a typical company that produces many consumer products organized into brand groups, each brand group is managed by a brand manager.

A brand manager is a manager who bears full responsibility for trade, product development, budget and income, as well as for advertising and other areas of promoting the product of a given brand to the market. The advertising manager or director works with the agency to develop an advertising strategy.

The agency typically presents the advertisement to the brand manager and advertising director. The advertising director and specialist in evaluating and supporting advertising effectiveness expresses his thoughts to the brand manager. Often the advertising director is responsible for approving advertising before testing it with actual customers.

The advertising manager organizes and recruits the staff of the advertising department, selects the advertising agency and coordinates the necessary efforts with other company departments and related businesses outside his organization, and also leads advertising control activities. Is it at the right time, in the right volume and in the right place? Does advertising really deliver what the company needs? Is the work being done within the budget? And, most importantly, does advertising achieve its objectives?

Who exactly performs all these functions is defined differently depending on the industry and the size of the business. For example, a small retailer may have one person on staff (usually the owner) who develops the idea for the advertisement, drafts it, and selects the delivery vehicle. The material implementation of such advertising may be entrusted to temporary workers or local media.

Larger retailers have more sophisticated advertising departments and may have in-house specialists do most of the work in-house.

Product manufacturers prefer to rely more on advertising agencies for these tasks, and their advertising managers act as a liaison between the company and the agency in such cases.

Own agency

Companies that need more careful control over advertising have their own agencies within the company. For example, large retailers find that self-production advertising provides cost savings, as well as the ability to quickly revise deadlines. Agencies within firms perform most, and sometimes all, of the functions of an independent advertising agency. White Star Line's Liverpool-based advertising department planned and executed much of the Titanic's publicity.

Mass media

• 
  selling space in newspapers, magazines, on street billboards and in mailing lists;
• 
  sale of time in broadcast media: radio and television;
• 
  the sale of space and time in electronic and other means, such as the World Wide Web;
• 
  assistance in the selection of advertising media and their analysis;
• 
  assistance in advertising production.

Mass media are obliged to deliver advertising messages in such a way that the delivery method is compatible with the creative concept. For Ball Park Franks, for example, the launch of its new hot dog packaging required detailed product information, product imagery and inclusion famous person- former basketball star Michael Jordan.

To fulfill the requirements of the advertising message, the magazine seems best choice for Ball Park. The combination of message and media was not chosen arbitrarily. Media personnel gather information about its audience to match the message with the delivery medium. Ball Park's new hot dogs are designed for kids about to start school, so print ads have appeared in magazines such as Sports Illustrated, Jr., Jack "n" Jill and Star War Kids.

ABBREVIATION IN P&G

IDEA OF MARKET

THE FOUR R'S OF MARKETING

PLACE (DISTRIBUTION CHANNEL)

PRICING

ORGANIZATION OF LONG-TERM RELATIONSHIPS

THE ESSENCE OF BUSINESS: IDEAS. INCREASED VALUE

EXPERIENCE. OBJECTIVITY AND DEFENSE

FULL CYCLE AGENCY

AGENCY PHILOSOPHY

INTEGRATED MARKETING COMMUNICATIONS

HOW AGENCIES ARE ORGANIZED

ACCOUNT MANAGEMENT

CREATIVE DEVELOPMENT AND PRODUCTION

MEDIA PLANNING AND PURCHASING

INTERNAL SERVICES

THE FUTURE: EFFICIENCY, EFFICIENCY AND RESPONSIBILITY

PART II BASIS, PLANNING AND STRATEGY OF ADVERTISING

CHAPTER 5. CONSUMER AUDIENCE

IF YOUR TUMMY HURTS

MARKET SEGMENTATION/TARGET MARKETING

REFERENCE GROUPS

GEOGRAPHICAL LOCATION

PURCHASING BEHAVIOR

DECISION MAKING PROCESS

CHAPTER 6. STRATEGIC RESEARCH

UNDERSTANDING EUROPEAN GENERATION X

STRATEGIC RESEARCH VERSUS EVALUATION RESEARCH

SECONDARY RESEARCH PROVIDERS

WHO COMPOSES THE FACTS?

STRATEGIC NEWSLETTER

DIAGNOSTIC STUDY AND EARLY FEEDBACK

COMMUNICATION TESTS

CHAPTER 7. STRATEGY AND PLANNING

KNOWS WHAT TO DO

MARKETING PLAN

EVALUATION OF PLANS

EXECUTION DETAILS

AUDIENCE

AWARENESS: AN IMPRESSION MADE

REINFORCING INFLUENCE: MEMORIZATION

HOW BRAND IMAGE WORKS

BRAND IMAGE

PART III. MEANS OF DISTRIBUTION OF ADVERTISING INFORMATION

WHERE ARE THESE COLLEGE STUDENTS?

IDENTIFYING POSSIBLE TARGET AUDIENCES

AUDIENCE INDICATORS USED IN ADVERTISING MEDIA PLANNING

ADVERTISING MEDIA PLANNING ACTIVITIES: STAGES OF PLAN FORMATION

FLOW CHART: SCHEDULING AND BUDGET DISTRIBUTION

CHAPTER 10. PRINT MEDIA

HOW TO CATCH "GENERATION X"

STRUCTURE OF NEWSPAPERS

NEWSPAPER READERS

ADVANTAGES OF NEWSPAPERS

THE FUTURE OF NEWSPAPERS

MAGAZINE READERS

DISADVANTAGES OF MAGAZINES

MTU IN EUROPE: ONE COUNTRY AT A TIME

CABLE AND PAY TV

INTERACTIVE TELEVISION

KYK PEOPLE WATCHING TV

FLAWS

CABLE RADIO AND DIGITAL RADIO BROADCASTING (ODB)

RADIO AUDIENCE ASSESSMENT

FLAWS

SPECIAL SKILLS: EXCELLENT KNOWLEDGE OF ADVERTISING MEDIA POSSIBILITIES

NEGOTIATION: THE ART OF THE BUYER

TECHNICAL AND SCHEDULE ISSUES

IDEAS ARE BORN: THE “DID YOU DRINK MILK?” CAMPAIGN

WHAT MAKES AN IDEA CREATIVE?

STRATEGY AND CREATIVITY

CREATIVE ROLES

CREATIVE PROCESS MANAGEMENT

"HARD" AND "SOFT" SALE

TEXT AND IMAGE

STOP AND DREAM

MAIN TEXT

DEVELOPMENT OF LAYOUTS

FONT DESIGN

REPRODUCTION IN COLOR

NEW TECHNOLOGIES

FROM THE BIG SCREEN TO THE HOME SCREEN

SHOOTING

PLANNING AND PRODUCTION OF TELEVISION ADVERTISING

PRACTICAL ADVICE FOR PRODUCING TV ADVERTISING

RADIO TEXTS

WORKING WITH IMAGES

THEY ARE BACK

TYPES OF DIRECT MARKETING

INTEGRATED DIRECT MARKETING

DIRECT MARKETING MANAGEMENT

DEVELOPMENT OF A DIRECT MARKETING PROGRAM

CATALOGS

INTERACTIVE MARKETING

GOODS DELIVERY

APPEAL design

DEVELOPMENT TRENDS OF TELEPHONE DIRECTORIES

CHAPTER 18. PROMOTION OF PRODUCTS

HAPPY OPPORTUNITIES

THE ROLE OF PRODUCT PROMOTION IN MARKETING

NEW PRODUCT INTRODUCTION

PROMOTION OF PRODUCTS DIRECTED AT CONSUMERS

PROMOTION OF GOODS DIRECTED TO AN INTERMEDIARY

THE FUTURE OF PRODUCT PROMOTION

CHAPTER 19. PUBLIC RELATIONS

USING THE MEDIA

TRACKING PUBLIC OPINION

PR TOOLS AND TECHNIQUES

MEDIA RELATIONS

ELECTRONIC COMMUNICATIONS

EFFICIENCY MARK

CHAPTER 20. CAMPAIGN PLAN

WHERE IS YOUR "MUSTACHE"?

CAMPAIGN STRATEGY

MARKETING COMMUNICATIONS

CAMPAIGNS

GRADE

CHAPTER 21. CONDUCTING EVALUATION STUDIES

FOR GENERAL MOTORS EVERYTHING IS THE SAME

EVALUATION RESEARCH: COMPANIES AND METHODS

RECOGNITION TESTS

CONSIDERABILITY TESTS

ASSESSMENT OF DIRECT RESPONSE

Focus Groups

PERSONNEL TESTS

ANALYSIS OF EVALUATION STUDIES

STORE WITHOUT STORE

RETAIL TRENDS

BUYING AND SELLING SPACE IN LOCAL MEDIA

RETAIL MARKET RESEARCH

BUSINESS AND CONSUMER MARKETING

TRANSLATION PROBLEMS

CULTURES WITH HIGH AND LOW CONTEXT DEPENDENCE

SPECIFIC CHALLENGES IN INTERNATIONAL ADVERTISING

INERTIA. RESISTANCE. REJECTION AND POLITICS

NAME INDEX

INDEX OF COMPANY AND BRAND ABBREVIATIONS

Alphabetical index

GOLDEN ARCHES UPDATE

McDonald's restaurants still hold world leadership in the field of provision fast food, although the general trends look ominous. Hundreds of new competitors, customers' passion for low-calorie food - all this convinced McDonald's of the need for some strategic changes.

The result was the "Arch Deluxe" - a quarter-pound round bun with cheese, tomatoes, lettuce, onions, ketchup, seasoned with sauce and with a piece of bacon at the customer's request. Price: $2.39 with bacon, $1.99 without. “McDonald’s owns the children’s market, but the main, regular consumer in the fast food industry is almost an adult young man, yesterday’s teenager,” noted Prudential Securities commentator Janice Meyer. “They (at McDonald’s) are always concerned about regular customers there was more."

The Arch Deluxe advertising campaign got off to a bad start. On the day of the first show, May 9, 1996, the advertisement appeared on four major television channels and cable channels. Simultaneously, performances took place on stages in New York, Los Angeles and Toronto. A distinctive feature of the print media advertising campaign was a peel-off coupon placed in the picture instead of a baby's tongue, and its cost was estimated at $100 million.

Whether it worked or not is a big question. McDonald's insists that "Arch Deluxe exceeded expectations" by more than 30% and became one of the most successful products in the company's history, with more than 100 million of these burgers sold in the first two months alone. True, McDonald's does not say what these expectations were, how it keeps secret whether the indicated quantity includes burgers sold at a discount or given away for free (and this, according to one expert, is approximately 20%), and whether it has displaced "Arch Deluxe" other burgers of the company.

The situation facing McDonald's typifies the business climate of the 1990s. Growing industries—soft drinks, computer technology, sports equipment, and fast food—tend to be dominated by one or two companies—Coca-Cola and Pepsi, Apple and IBM, Nike and Reebok, McDonald's and Burger King. Relatively minor competitors like Diet Dr. Pepper, Compaq, Adidas and Wendy's are faced with a choice: either rush into a frontal attack (an impossible task) or settle for a strategy of attacking from the flanks. Wendy's, for example, recognizes that the only way competition lies through advertising, which must be targeted both in content and in the choice of media.

WHAT MAKES AN ADVERTISING GREAT?

Coca-Cola advertisement from the 1960s. was undoubtedly huge. The miniature with the lyrical song “I would buy the whole world...”, which was sung by the children of all the peoples of the Earth gathered on the top of the hill, is considered a classic. The company's commercials at that time won many awards and significantly contributed to consumer awareness of the product and a significant increase in sales. When did Coke commercials stop being big? Some insist that it all started with the introduction of Diet Coke. In their opinion, buyers were unable to figure out whether it was “Coke” or not. Others doubt the correctness of the marketing decision. Was Diet Coke so closely related to regular Coke that one product replaced the other? Was Coke's interpretation of the country's demographic changes correct? What is the role of new competitors better than the old ones in all this? Finally, it should not be forgotten that the emphasis on price discounting as a way of life in the soft drink industry has dramatically changed the relative importance of advertising in the business. Even the most ambitious advertising cannot take into account such a variety of powerful factors. And yet, what is grandiose advertising?

Often the definition of great advertising comes down to simply identifying what people like most about it. We all have our favorite advertisements. What TV commercials do you remember? What stuck in your memory from the radio commercial? Or in magazines? Why do you prefer them? If you're like most people, your favorite commercials are either funny or cleverly executed. As we will see later, the reasons why people like a certain advertisement and its effectiveness, or grandiosity, are often based on the same qualities.

Many companies are engaged in surveys of people “why” they prefer this or that advertising. The advertising industry itself evaluates its own products through incentive programs such as Clios, EFFIES and Addy Awards. However, neither the preferences of buyers nor the winning of industry prizes by an advertisement turns it into a grandiose one. Many agencies who have developed award-winning advertising campaigns have been rejected by their clients because the firms did not see an increase in sales.

This was convincingly summed up by David Ogilvy: “If I could convince creative lunatics to give up their desire for awards, I would die happy... It's time to put an end to advertising that forgets to promise the buyer at least some benefit. It's time to stop throwing dust. into the eye by artistic means"1. Part I: Advertising Basics and Its Environment

So, if neither awards, nor popularity, nor longevity are reliable measures of grandiosity

You can obtain the full text of this book by contacting the publisher, bookstore or library.

CHAPTER 1. Introduction to Advertising
What makes a successful advertisement?
World of Advertising
Definition of Advertising, Types of Advertising, Roles of Advertising, Functions of Advertising
Advertisers, Advertising Agencies, Media, Free Traders of Ideas, Target Audience
The evolution of advertising
The Print Era, The Industrial Revolution and the Emergence of Consumer Society, Modern Advertising
Current problems of advertising
Interactive Advertising, Integrated Marketing Communications, Globalization, Market Niche Marketing, Consumer Power, Relationship Marketing and Customer Compliance
Summary
Notes

CHAPTER 2. Advertising and Society: Ethics, Regulation, Responsibility
Advertising and society
Ethics criteria, Ethics problem
Ethical Issues in Advertising
"Inflated" advertising, Taste and advertising, Stereotypes in advertising, Advertising for children, Advertising of controversial goods, Advertising acting on the subconscious
Advertising Laws and Regulations
Impact of Federal Case Law on Advertising
First Amendment to the US Constitution, Development of Privacy Law: Internet Advertising
Federal Trade Commission
Misrepresentation, Validity of Claims, Comparative Advertising, Confirmations, Demonstrations, Remedies against Misleading and Dishonest Advertising
Other regulatory agencies
Quality Control Department food products and Drugs, Federal Communications Commission, Other Federal Agencies
Self-regulation and social responsibility
Self-discipline, Pure and cooperative self-regulation, Local regulation: BBB, Regulation of mass media and advertising
Summary
Notes

CHAPTER 3. Advertising and the Marketing Process
What is marketing?
Marketing plan, The role of advertising in the marketing plan, Types of markets, Methods of working with the market
Marketing concept and relationship marketing
Four Marketing Tools
Product, Distribution Channel, Pricing
Advertising agencies: a combination of marketing and advertising
Why hire an agency?, Types of agencies, How agencies are organized, How advertising agencies are paid, The impact of new technologies on advertising
Summary
Notes

PART II. BACKGROUND, PLANNING AND STRATEGY

CHAPTER 4. Consumer audience
Consumer behavior
Consumer Audience, Target Market
Cultural and social factors influencing consumer behavior
Culture, Social Class, Reference Groups, Family, Demographic Characteristics, Geographical Location
Psychological factors influencing consumer behavior
Perception, Learning, Motivation and needs, Relationships, Personality, Psychography
Purchasing decision process High and low involvement decision making processes Stages of the decision making process
Summary
Notes

CHAPTER 5. Planning and researching advertising agency orders
Planning and researching orders: a challenge for intelligence and intuition
Strategic Research
Secondary Research, Primary Information Providers, Advertiser Research Departments and the Transition to Order Planning, Who Compiles the Facts?
Strategic Summary
Marketing Purpose, Product, Target Audience, Promise and Support, Brand Identity, Strategy Statement
Research when creating a message
Diagnostic studies and early feedback, Communication tests
Evaluation study
Memory Tests, Persuasiveness Tests, Direct Response Scoring, Communication Tests, Personnel Testing, Market Tests, Substitutes for Market Tests, Brand Tracking, Hidden Features of Appraisal Research
Challenges in conducting research
Globalization, New technology advertising media, Virtual research
Summary
Notes

CHAPTER 6. How advertising works
Impact of advertising
External environment of the advertising process, Internal environment of the advertising process
Perception: Creating a Stopping Impact
Contact (234) Awareness: the impression made, Understanding: the explanation of the advertisement, Persuasion: the attractive force of the advertisement, Remembering: the anchoring force
How does a trademark work?
Brand Image, Promise, Creating Brand Value
Creativity or content?
Summary
Notes

CHAPTER 7. Advertising Strategy and Planning
Strategic planning
Strategic planning: develop a smart solution, Planning documents, Business plan
Marketing Plan
Marketing Objectives, Marketing Challenges and Opportunities, Selecting Target Markets, Marketing Strategies, Plan Execution, Evaluating Plans
Advertising plan
Introduction, Situational analysis, Strategic decisions in advertising, Execution, Evaluation, Advertising budget
Creative plan and strategy advertising text
Appeal Strategies, Commercial Prerequisites
Summary
Notes

CHAPTER 8. Media Advertising: Planning and Purchasing
Connection between media planning and advertising campaign
Consolidation of advertising media: new perspectives, The concept of aperture in media planning, Sources of information for media planning
Defining the goals of the media plan
Determination of target audiences, Sales geography, Timing, Duration: how long to advertise
Development of a media strategy
Strategies for reaching the target audience: new methods, Geographical strategies for reaching: the proportion of investments in media, Strategies for distributing advertising over time, Strategies for placing an ad
Methods for selecting advertising media
Audience Metrics Used in Media Planning, Net Reach and Media Planning, Frequency and Media Planning, Reach and Frequency Combination, Cost Effectiveness as a Planning Metric, Selection and Procurement of Acceptable Media Advertising
Functions of media buyers
Providing internal information media planners, Selecting an advertising medium, Negotiating advertising prices, Monitoring the implementation of the planned media plan, Analyzing the effectiveness of media after an advertising campaign
Special skills of media buyers
Negotiation: the art of the buyer, Tracking the implementation of the plan
Procurement of global media advertising
Stages of forming a media plan
Situation analysis, Advertising campaign objectives and aperture possibilities, Selection of advertising media, Flow diagram: scheduling and budget allocation
Summary
Notes

CHAPTER 9. Print media
Print media
Newspapers
Structure of Newspapers, Newspaper Readers, Quantifying Readership, Newspaper Advertising, Advantages of Newspaper Advertising, Disadvantages of Newspaper Advertising, Changes in the Newspaper Industry
Magazines
Types of Magazines, Quantifying Readership, Magazine Advertising, Advantages of Magazines, Disadvantages of Magazines, Changes in Magazine Industry: Operational Technology
Outdoor advertising
Street advertising, Buying space for outdoor advertising, Audience
Advertising on transport
Transport advertising audience, Other media
Advertising in telephone directories
Advertising in the Yellow Pages
Media strategy for print media
Summary
Notes

CHAPTER 10. Electronic mass media
Television industry
Network television: wired and wireless television networks, Public television, Cable and pay television, Local television, Specialized television, Organization of sales of television programs, Interactive television, Changes in the television industry
TV advertising
Forms of television advertising
Television audience
Television audience assessment, Advantages of television, Disadvantages of television
Radio structure
AM radio, FM radio, Cable and DAB radio, Web radio
Radio advertising
Radio networks, Spot radio advertising
Radio audience
Radio audience assessment, Advantages and disadvantages of radio, Choosing radio as a media tool
Interactive media
Strategies for advertising in broadcast and interactive media
Summary
Notes

CHAPTER 11. Creative side advertising activities
What is creativity in advertising?
Creative leap, Creative concept, Strategy and creativity, Creativity and strategy when developing an advertising message, Creative thinking
Creative roles
Text and image, Artistic editing, Text composition
Creative person
Personality characteristics
Creative process
Stages and Stages, Brainstorming
Creative strategy and its implementation
Product categories and advertising strategy, Rational and emotional strategies, Commercial premise, Support, Creative platform summary, Execution decisions
Effective Creativity
Integrity and Creativity, The Creative Side of Online Advertising
Summary
Notes

CHAPTER 12. Creation print advertising
Printable advertisement
Advertising in newspapers, Advertising in magazines, Advertising in directories, Outdoor advertising, Advertising on transport, Literature about the product
Creating print advertising text
Headings, Other highlighted text elements, Body text
Print advertising design
Layout development stages, Print advertising design principles, Color, Font design
Print advertising production
Art Reproduction, Color Reproduction, Printing Process, Final printed works and stitching, Printing technologies
Summary
Notes

CHAPTER 13. Creating advertising for electronic media
Advertising radio spots
Characteristics of radio advertising appeal, Tools
Television commercials
Elements, Characteristics of appeal of television advertising, Television advertising in countries with a different culture
Other types of television and large format advertising
Advertising and informational video, Advertising on video cassettes, Advertising in cinemas, Representation of the brand in artistic formats
Creative team
Creation of advertising text for broadcast media
Radio advertising text, Television advertising text, Television advertising production planning
Artistic editing of television
Computer graphics
Broadcast advertising production planning
Scenario
Broadcast advertising production
Radio advertising production, Television advertising production, Production process
Internet advertising
Website design, Banner advertising design
Summary
Notes

CHAPTER 14. Direct Marketing
Direct Marketing
Direct Marketing Strategy
Direct Marketing Industry
Direct Response Advertising, Database Marketing, Home Shopping
Participants
Advertisers, Agencies, Consumers
Direct Marketing Media
Direct mail advertising, Catalogs, Telephone marketing, Print media, Broadcast advertising, Internet
Database Management
Types of Mailing Lists
Integrated Direct Marketing
Integration of advertising channels, One appeal, many channels, Interactive technology, Gaining loyalty
Summary
Notes

PART V. ELEMENTS OF INTEGRATED MARKETING COMMUNICATIONS

CHAPTER 15. Stimulation
Sales promotion
Volume of promotional expenses, Reasons for increasing sales promotion expenses
Sales promotion aimed at consumers
Coupons, Contests and sweepstakes, Returns and refunds, Prizes, Sample testing
Intermediary-directed incentives
Point of Sale Display, Retailer/Dealer Kits, Reseller Contests and Sweepstakes, Trade Fairs and Exhibitions, Reseller Incentives and Trade Agreements
Other types of incentives
Special Event Sponsorship and Marketing, Souvenir Advertising, Interactive and Internet Incentives, Licensing, Commitment/Long Term Programs, Cooperative Marketing Programs
The role of incentives in marketing
Incentive Strategies, Incentive Integration
Summary
Notes

CHAPTER 16. Public relations
Public relations activities
Comparison of PR and advertising, Existing differences, Product promotion
Types of PR activities
Management in the field of public problems, Image and reputation management, Relationship management, Crisis management
PR tools
Own advertising, Messages about public services, Corporate Advertising, Internal Publications, Representatives, Photos and Films, Demonstrations, Exhibits and Special Events, Press Release, Press Conference, Electronic Communications
PR for non-profit organizations
Nonprofit Organizations, Charity and Mission Marketing
Evaluating performance and mastery
Summary
Notes

CHAPTER 17. Trade, retail and business advertising
Trade and retail advertising
Local Trade and Retail Advertising, Differences between Local Trade and Retail Advertising and National Brand Advertising, Cooperative Advertising, Highly Specialized retailers, Retail trade outside of stores, Retail via the Internet and e-commerce, Institutional trade advertising and trade and retail advertising of goods, Trends affecting trade and retail advertising, Creation of trade and retail advertising
Buying space in local media
Media strategy for local businesses retail, Media selection
Business advertising
Types of business advertising, Marketing in business sphere compared to consumer marketing, Purposes of business advertising, Creation of business advertising
Business advertising media
General publications on business and trade, Directory advertising, Direct marketing, Mass media consumer advertising, Internet, Does business advertising affect sales?
Summary
Notes

CHAPTER 18. International advertising
The Evolution of Global Marketing
Domestic production, Export, Nationalization and regionalization
Global Perspective
Global Brands, Global Debates and Advertising
international Management
Common Language, Global Advertising Plan, Agency Selection
Approaches to international advertising campaigns
Centrally controlled campaigns, Global product positioning, Budgeting, Selecting communication channels for international advertising campaigns, Implementation of international advertising campaigns, Achieving global results, Performance evaluation
Specific difficulties in international advertising
Laws and Regulations, Customs and Culture, Time, Inertia, Resistance, Rejection and Politics
Summary
Notes

CHAPTER 19 Campaign Plan
Integrated Marketing Communications
Integrated marketing communications tools, Stakeholder audiences, Coordination
Campaign Plan Structure
Situation Analysis, SWOT Analysis, Campaign Strategy, Communications Strategy, Media Plan, Other Marketing Communications Tools, Campaign Allocations and Budget
Campaign evaluation
Creating synergy
Summary
Notes

APPLICATION. Hallmark Integrated Marketing Communications Campaign
Why do people buy postcards?
Industry trends
Company brands and retail distribution system
Hallmark Brand Value
Primary Research
Creative strategy
Media advertising

GLOSSARY
NAME INDEX
SUBJECT INDEX
INDEX OF COMPANIES AND TRADEMARKS

EXCERPT

CHAPTER 1. Introduction to Advertising
CHAPTER STRUCTURE
What makes a successful advertisement?
World of Advertising
Five participants in the world of advertising
The evolution of advertising
Current problems of advertising
CHAPTER OBJECTIVES
After reading this chapter, you will be able to:
1. Discuss the components of successful advertising.
2. Characterize advertising and identify its nine types and four roles.
3. Recognize the five players in the world of advertising.
4. Explain how key figures and events in advertising history impact advertising today.
5. Summarize the current problems in advertising.
In industries once dominated by two or three manufacturers, there are now many nimble contenders turning the world around. Smaller businesses often find it easier to compete because they are smaller, more flexible, and more focused on specific rather than mass markets. Thanks to new technologies that make advertising more cost-effective, it is now available to manufacturers at all levels.
As we will see in Exhibit 1, the strategic communications solutions that White Star Line used to launch the Titanic focused on promoting luxury, admiration, celebrity, and the ship itself was advertised along with other firms' products. This shows how much work is required for advertising campaigns.
EXAMPLE 1 Titanic sale
Perhaps, after Noah's Ark, the Titanic is the most famous ship in history. How did the Titanic shipwreck become the Titanic phenomenon?
In 1907, J. Bruce Ismay, manager of the White Star Line, one of the most famous shipping companies, met with Lord William James Pirrie, owner of Harland and Wolff, a British shipbuilding firm, to discuss a strategy for competing with other shipping companies. The strategy called for the construction of three huge Olympic-class steamships, large enough to cater to two growing markets: immigrants who needed cheap and safe passage to America, and wealthy people. Wealthy people could afford expensive apartments on the Titanic: $4,000 or more—about $85,000 today—for a ticket from England to New York. The size of the Titanic made it the largest moving object in the world, and its luxury captured the imagination of the public: Turkish baths, elevators, swimming pools, gold and marble, interiors from different historical eras. The building has become a place of pilgrimage for tourists. On May 31, 1911, more than one hundred thousand people watched the launch of the Titanic from the Harland and Wolff shipyard in Belfast, Ireland.
During the time between the Titanic's launch and her maiden voyage in April 1912, the White Star Line's advertising staff worked tirelessly in England and New York to publicize when the ship would sail, where it would be from, how much a ticket would cost, and advertising campaign in order to sell tickets. At one time, they prepared materials promoting the launch of the Titanic as an event of global scale: for example, a series of color postcards demonstrating the power and size of the Titanic. One of them compared the Titanic to the wonders of the world.
The Titanic spawned several joint advertising campaigns with companies wishing to be associated with a technical miracle: an example is the Liverpool-based Wilson's Cooking Apparatus, which supplied the Titanic with kitchen equipment. Also involved in the promotion of the Titanic was Captain Edward J. Smith, a skilled sailor who was famous for working for the White Star Line for a quarter of a century and would be on the Titanic for his last Atlantic crossing and retirement.
But absolutely fantastic fame came to the Titanic after its death. Colliding with an iceberg, it sank after 2 hours and 40 minutes. Sixteen manned rescue boats (and four collapsible ones), many of them incomplete, kept approximately 700 passengers alive; more than 1,500 died. Enough people survived to report the disaster in detail to the insatiable newspapers, which at that time had just been equipped with a telegraph. "Titanic" became one of the first major sensations in the twentieth century reflected in the media.
Since 1912, each new generation has retold this story. And every generation produces products associated with the name of the Titanic. The Titanic, as a phenomenon, sailed safely into the third millennium.
Think about it:
1. What types of advertising and other types of market promotion of Titanic did White Star Line use?
2. What was White Star Line's strategy in developing the Olympic class ships?
3. How does the evolution of Titanic-related products and services help us understand the history of advertising?
Sources: Tim Ziaukas, assistant professor of PR at the University of Pittsburgh at Bradford, provided background and additional material on Titanic. His sources include: Steven Biel, Down with Old Canoe: A Cultural History of the Titanic Disaster, New York: Norton, 1996; John P. Eaton and Charles A. Haas "Titanic: Triumph and Tragedy", 2d ed. New York: Norton, 1995; Don Lynch and Ken Marschall "Titanic: An Illustrated History" Toronto: Madison Press Books, 1992; Geoff Tibballs "The Titanic: The Extraordinary Story of the "Unsinkable" ship" Pleasantville, NY: Reader's Digest, 1997; Tim Ziaukas "Titanic Public Relations: A Case Study", Journal of Public Relations Research Vol. II, No. 2 (1999 ), 105-125.
What makes a successful advertisement?
Was the Titanic advertising campaign successful? The planning, creation and execution of each individual advertisement defines very specific aspirations. And to reach the consumer, it must work in conjunction with other forms of marketing communications. The advertising and popularity of the Titanic attracted the attention of the whole world and helped sell all tickets for the first voyage. But, to be honest, we are not sure about the success of this advertisement.
Only the advertiser (and his advertising agency) knows whether the advertising campaign achieved its goals and was truly successful. Only successful advertising - the main theme of our book - helps the advertising customer achieve his goals.
Is an advertisement recognized as the winner of a competition always successful? To answer this question, let's look at one example. A sampling by trade publication Advertising Age shows that the best ad of 1997 - VW's "Sunday Night" ad parodying the television show Seinfeld - does not convey any message. According to one reviewer, she won the award for her "expressiveness, wit, reasoning, obsessiveness and, above all, for what she didn't say."
Was this ad considered the best for its creativity, uniqueness, believability or humor? No, it received the most votes because the jury paid attention to its creative elements.
However, an advertisement is successful to the extent that it achieves its objectives, not because it wins prizes. This does not deny the value of creativity, which often forms an essential part in achieving the actual objectives of advertising. But creativity in itself does not lead to the creation of successful advertising. Think about it. Would the company consider the commercial successful if the VW Golf's sales decreased as a result of the advertising campaign? (In fact, sales increased, as we will see in Chapter 13).
Characteristics of successful advertising
Good or successful advertising operates on two levels. First, advertising must satisfy consumers' goals by attracting them and delivering relevant information. At the same time, advertising must serve the goals of the customer. For now, remember that the goals of the advertiser and the consumers are different. The advertiser is responsible for ensuring that the goals of both parties are aligned.
Initially, consumers are interested in watching advertisements for entertainment or to satisfy curiosity. If the ad is exciting enough, he may remember it. He may then conclude that the advertisement is relevant to his own needs and provides him with important information about how to satisfy those needs. Advertising can also encourage consumers to try something new by showing them how to do it in a convenient way. Advertising can increase a consumer's determination to purchase a product or remind him of how his needs were met in the past.
The advertiser's goals are different. Ultimately, advertisers want consumers to buy their products and services. To motivate a consumer to take action, they must gain his attention, be able to provide him with sufficient information and convince him to change his purchasing behavior, i.e., try their product and settle on that choice.
To win, the advertiser must understand the consumer well enough to provide him with the necessary information when required. In addition, the advertiser must understand how the consumer's goals change as he receives advertising information and what type of advertising delivery he uses or prefers. All of these actions increase the advertising's chances of achieving excellence.
Successful advertising is characterized by three main parameters: strategy, creativity and execution. Our book gives them great importance.
Strategy
Every successful ad has a solid strategy. The advertiser designs advertising to achieve specific goals, carefully targets it to a specific audience, creates a message that meets the most important interests of that audience, and launches it into those media (print, broadcast, Internet, etc.) that will reach the selected audience more effectively Total.
Practical advice
Measuring Advertising Success
When discussing the success of an advertisement, consider the extent to which it achieved its objectives. The most typical goals are:
increase in sales;
changes in consumer behavior;
increasing brand awareness.
The "Can't Hide" spot for Southwestern Bell supports a clear strategy. The biggest complaint consumers have about telephone marketing companies is their evening phone calls, which typically interrupt dinner time. To reassure consumers that Southwestern Bell understands this frustration, the company developed a television ad that shows a "It's Always Dinner Time Somewhere" poster adorning the wall of the company's office. The video is built on sharp transitions from one frame to another. A group of boring salesmen with headsets while away the time in their nooks. Next shot: a middle-aged father of a family who has just returned from work, dinner is almost served. Again there are fences, there is some movement in these closets. The pork chop is already on the plate, and Dad looks at it with hungry eyes. Again the office where they dial the number. The pork chop is cut, the piece is ready to disappear into the Pope's mouth, the tension increases, then - time! Phone call. Southwestern Bell promises: "No sales calls during dinner." The idea responds to consumer dissatisfaction with telephone marketing companies.
Creativity
Creative concept is the central idea of ​​how an advertisement can capture attention and be remembered. Each of the advertisements we have already discussed has a main idea that is original and creative.
A concern for creative thinking powers the entire field of advertising. Strategy planning calls for creative problem solving; research efforts are creative; purchasing advertising time or space, choosing the moment to place advertising also require a creative approach. The advertising industry is considered a field of inspiration precisely because it constantly requires creativity in the choice of media and advertising content.
Execution
Finally, every successful ad is well executed. This means that individual details, techniques used and product value characteristics are presented in the finest harmony. Many of the techniques involved are experimental, such as the use of the popular computer graphics software package "ADOBE" in Louie the Lizard's Budweiser commercial.
However, in this advertising too, the quality of execution is more important than the technology used. AT&T's commercials call for a warm emotional connection with a subtle emotional effect. This advertisement awakens feelings without being overly sentimental or pretentious.
Good advertisers know very well: “how to say” is no less important than “what to say.” What you say comes from strategy, and how you say it comes from creativity and execution. Strategy, creativity and execution are the three ingredients that make advertising effective. A successful advertisement must have these three qualities: the right strategy, an original creative concept and execution that is most suitable for conveying the advertising message to the audience.
Final warning: It is very easy to judge the creative concept and execution of a particular ad and call it a success. However, the final test of an advertisement is whether it achieved its objectives: this information is not always available to the consumer or observer. Be aware that trying to evaluate advertising without real-time information is risky.
World of Advertising
In this section, we will define the concept of advertising by analyzing its six elements. Next, we'll look at some types of advertising, the roles of advertising, and their functions.
Definition of advertising
What is advertising? What are its most important parameters? The standard definition of advertising includes six elements. First, advertising is a paid form of communication, although some types of advertising, such as social advertising (PSA), have free space and time in the media. Secondly, the news conveyed in the advertisement is not only paid for by the sponsor, but also identifies him. Thirdly, most advertising tries to persuade the buyer to do something or influence him, that is, to convince him to do something, although in some cases it is aimed only at introducing the consumer to a product or service.
Fourth and fifth, an advertising message can be transmitted through several different types of media in order to reach a large audience of potential buyers. Finally, since advertising is a form of mass communication, it is not personalized. Thus, a complete definition of the concept of advertising is impossible without specifying all of these six characteristic features.
Advertising is paid, non-personal communication carried out by an identified sponsor and using the media with the goal of inducing (something to) or influencing (somehow) an audience.
Ideally, every product manufacturer would like to speak personally with each customer about the product or service being offered for sale. Personal selling is coming close to realizing this idea, but it comes with significant costs.
Transactions concluded with sales representatives may result in additional costs for the customer in excess of $150 each.
Although advertising carried out using interactive technology can be considered more personal communication than mass communication, personal selling is still a long way off. By using interactive media such as the World Wide Web, advertisers can increase their sensitivity to the needs of the mass consumer, but this is not the same as meeting with each consumer individually to discuss a product or service. The important thing here is that interactive advertising reaches a wide audience just as much as regular advertising.
The costs of time in broadcast media and space in print media are spread across the vast number of people to whom these media are available. For example, $1.2 million may be perceived as a prohibitive expense for a single ad during a Super Bowl game. However, if you consider that the advertiser thus reaches an audience of more than 500 million people, his costs do not seem excessive at all.
Types of Advertising
Advertising is complex because there are many different advertisers trying to reach different audiences at the same time. There are nine main types of advertising.
Brand advertising
Most examples of advertising are national consumer advertising; Another name for it is brand advertising. The focus of this advertising is on creating an image and ensuring long-term brand recognition. All her efforts are subordinated to the desire to build a clear idea of ​​the brand of a product. The White Star Line associated the Titanic brand with power, scientific wonder and unparalleled luxury.
Trade and retail advertising
Trade and retail advertising is local in nature and focused on a retail outlet or service enterprise where a wide variety of products can be sold or certain services offered. Its messages advertise products that are available locally, encourage the flow of shoppers or service users to the advertised location, and attempt to create a highly visible image of the location. Trade and retail advertising focuses on price, availability of goods or services, location of the point and opening hours.
Political advertising
Politicians use advertising to encourage people to vote for them, so it is an important part of the political process in the United States and other democracies that allow advertising of candidates for elected office. While such advertising is an important source of communication for voters, critics are concerned that political advertising tends to focus more on building a politician's image than on the controversial issues that candidates are competing against.
Advertising in directories
Another type of advertising, called directory advertising, is necessary for people to be able to find out how and where to purchase a certain product or get a necessary service. A well-known form of such advertising is the Yellow Pages, although, as we will see in Chap. 9, many other directories successfully perform the same function.
Direct response advertising
Direct response advertising can use any advertising medium, including direct mail, but differs from national or trade-retail advertising in its attempt to stimulate direct sales on demand. The buyer just needs to respond by phone or by mail, and the goods will be delivered to him in one way or another.
Business advertising
Business advertising includes messages sent to retailers, wholesalers and distributors, as well as industrial buyers and professionals such as lawyers and doctors. Business advertising is usually concentrated in business publications, trade and professional magazines, and contains the clear, technical text and illustrations that are typical of this type of advertising.
Institutional advertising
Institutional advertising is also called corporate advertising. Its messages are aimed at creating awareness of the corporation or at attracting public attention to the point of view of the relevant organization.
Social advertisement
A public service announcement conveys a message that promotes something positive, such as not drinking while driving or encouraging good treatment of children. Advertising industry professionals create it for free, and space and time in the media are also provided on a non-commercial basis.
Interactive advertising
Interactive advertising is delivered to an individual consumer with a computer and Internet access. Advertising is placed on Web pages, banners, etc. In this case, the consumer can respond to the advertisement, modify it, expand it, or not pay attention at all.
So, we see that there is more than one type of advertising. In fact, the advertising industry is wide and varied. All types of advertising require creative, fresh messages that are strategically structured and well executed. We will discuss each type in more detail in subsequent chapters.
Roles of advertising
Advertising can also be analyzed from the perspective of the roles it plays in business and society:
marketing;
communication;
economic;
social.
Marketing Role
Marketing is the activity carried out in a business to satisfy the needs and wants of the customer through goods and services. The specific customers to whom a company directs its marketing efforts constitute its target market. Marketing tools include the product, its price, the means used to deliver the product (place of sale). Marketing also includes a mechanism for transmitting information to the buyer. This mechanism is called marketing communications or promotion. The four tools listed are generally defined as the marketing mix or 4Ps of marketing.
Marketing communications consists of four related modes of communication: advertising, sales promotion, public relations and personal selling. In the case of the Titanic, White Star relied on traditional advertising, public relations (news coverage), special events (breakfast) and celebrity guests (Captain E. J. Smith). Advertising, then, is just one element of a company's overall marketing communications program, albeit the most visible one.
Communication role
Advertising is one of the forms of mass communication. It conveys various types of information aimed at achieving understanding between sellers and buyers. Advertising not only informs about the product, but at the same time transforms it into a certain image, which becomes inseparable in the buyer’s mind from the actual information about the properties of the advertised product.
Economic role
There are two systems of views on advertising. The first, the theory of market power, considers advertising to be a means of persuasion that increases product differentiation and reduces consumer willingness to use similar products from competing firms. According to this belief system, advertising reduces the price elasticity of demand. As a result, advertising for a small restaurant chain, such as Ruth's Chris Steak House, will focus on quality food, wide selection and a pleasant atmosphere and will try to avoid mentioning prices or discounts.
Another approach, economic information theory, suggests that price elasticity promotes consumer awareness of the quality of close substitutes for a given brand. The basic assumption of this advertising-information model is that advertising informs about alternatives and increases price elasticity so that a small change in price leads to a large change in demand. In this case, Ruth's Chris Steak House advertising would be most effective by emphasizing the price, either explicitly or implicitly - "Still the best price on a steak!"
Economists and marketers have not yet given a strong preference to either approach. However, in a recent study, Anusree Mitra and John Lynch assessed these theories as they applied to three consumer groups. The results obtained support both approaches. The study found that advertising not only informs about existing substitutes, it also provides consumers with memory cues so that they consider more substitution options at the time of purchase.
In addition, advertising can increase price elasticity by increasing the number of well-known similar brands. How? The more brands consumers have to choose from, the more price-sensitive they become. The study found that, contrary to the market power school of thought, where consumers need to rely on their memory to come up with alternative decisions, advertising can increase price elasticity. And where consumers receive information at the point of sale, the practical effect of advertising may be to reduce price elasticity, which is consistent with the above-mentioned school of thought.
An example of the first type of market would be basic kitchen equipment: refrigerators and stoves, i.e., goods purchased on an irregular basis, the advertising of which contains the latest data. The second type of market is represented by a regular supermarket, where products such as bread, cereals and eggs are purchased frequently.
Social role
Advertising also plays a social role, and more than one. It informs us about new or improved products and teaches us how to use these new products. It helps to compare products and their features, allowing the buyer to make an informed purchasing decision. It reflects trends in fashion and design and contributes to our aesthetic ideas.
Advertising has the ability to flourish in a society that enjoys a certain level of economic abundance, that is, where supply tends to outpace demand. At this heyday, advertising moves from simply providing information services (telling customers where they can find the products they need) to messages that create demand for a particular brand.
The interesting thing is this: does advertising follow the trend or is it itself the leading link? Does advertising cross the line between reflecting public values ​​and creating them? Critics insist that advertising continually crosses this line, targeting vulnerable groups such as teenagers too heavily. The growing power of advertising in terms of money (we spend more each year on educating consumers than on educating our children) and in terms of dominance in communications (the media can no longer survive without the support of advertising) leaves no doubt.
Can advertising manipulate people? Some argue that advertising tells people how to behave. They believe that even if individual advertising fails to determine our behavior, the cumulative effect of non-stop advertising on television, radio, print and everywhere outside our doors can have an overwhelming effect. In the article "Principal Issues" we will look at the role of advertising in the increased popularity of socially disapproved behavior - smoking cigars.
There is no conclusive evidence of the manipulative power of advertising because there are too many other factors influencing our choices. In addition, advertisers are not objective and often, for their own benefit, distort or do not include certain information in advertising messages. Manipulation and other ethical issues will be discussed in more detail in the next chapter.
Advertising Features
Although each individual advertisement or promotional campaign is aimed at solving the problems set by the sponsor, there are three main functions of advertising.
Information about a brand or product. Advertising often does not contain detailed information, but providing the consumer with relevant information to help him make a decision is still its main function. The type of this information depends on the needs of the target audience. For example, in the case of buying a new suit, they may only contain the price and address of the retail outlet. The American Dairy Association simply tells us: "Drink milk." Advertising for technology is usually very detailed.
Inspiration to action. In many cases, consumers are reluctant to change established habits. Even if they are somehow dissatisfied with the product or service they are using, they are already accustomed to this product, and it seems difficult for them to learn about something new. Advertising invites the consumer to switch to a new brand by presenting its arguments using inscriptions and drawings. Benefits, quality, lower price, guarantees or attracting celebrities - all methods are possible.
Reminder and reinforcement. It's amazing how many advertisements are sent to consumers every day. Since they quickly forget why they bought a certain brand of microwave oven or car, advertising must constantly remind them of the brand name, its benefits, its cost, and so on. The same messages act again, inviting you to buy the product again. Most TV advertising seems to serve this function.
Five participants in the world of advertising
In addition to defining the essence of advertising in terms of types, various roles and functions performed, one can also approach this definition in terms of the actors in the process of bringing advertising information to the buyer. Here are five major players in the advertising world:
1. advertisers;
2. advertising agencies;
3. media;
4. intermediaries;
5. audience.
Advertisers
Advertising begins with the advertiser - the individual or organization who usually initiates the advertising process. The advertiser makes decisions regarding who the advertisement will be intended for, what means of message delivery to use, determines the advertising budget and the duration of the advertising campaign.
We can only roughly estimate annual advertising costs. In addition, expense categories become more complex, and estimates become less accurate. Robert J. Cohen, senior vice president and chief forecasting officer at McCann-Erickson Worldwide, which is considered the most trusted source on ad spending, admits it's a guessing game. However, he estimates total advertising spending for 1998 at $200 billion in the United States and $418.7 billion worldwide.3
Advertising agencies
The second key player in the advertising world is advertising agencies. Advertisers hire independent agencies to plan and implement some or all of their advertising efforts.
In modern conditions, the ranks of advertising organizations are constantly changing. Currently, McCann-Erickson Worldwide is the largest consolidated agency with $12.8 billion in revenue, and J. Walter Thompson Co. is the largest single agency with $2.7 billion in revenue. Specialty agencies (those focused on a single industry, such as healthcare or banking) are growing twice as fast as general agencies.
The advertiser uses a third-party agency because it is confident that it will be more efficient and productive in creating a single commercial or an entire advertising campaign. The strengths of a successful agency lie primarily in its resources, creative expertise, staff talent, media knowledge, advertising strategy and ability to handle client affairs.
Advertising department
Most large companies have their own advertising department. Responsibility for advertising activities lies with the advertising manager, advertising director or head of advertising, who usually reports to the marketing director. In a typical company that produces many consumer products organized into brand groups, each brand group is managed by a brand manager.
A brand manager is a manager who bears full responsibility for trade, product development, budget and income, as well as for advertising and other areas of promoting the product of a given brand to the market. The advertising manager or director works with the agency to develop an advertising strategy.
The agency typically presents the advertisement to the brand manager and advertising director. The advertising director and specialist in evaluating and supporting advertising effectiveness expresses his thoughts to the brand manager. Often the advertising director is responsible for approving advertising before testing it with actual customers.
The advertising manager organizes and recruits the staff of the advertising department, selects the advertising agency and coordinates the necessary efforts with other company departments and related businesses outside his organization, and also leads advertising control activities. Is it at the right time, in the right volume and in the right place? Does advertising really deliver what the company needs? Is the work being done within the budget? And, most importantly, does advertising achieve its objectives?
Who exactly performs all these functions is defined differently depending on the industry and the size of the business. For example, a small retailer may have one person on staff (usually the owner) who develops the idea for the advertisement, drafts it, and selects the delivery vehicle. The material implementation of such advertising may be entrusted to temporary workers or local media.
Larger retailers have more sophisticated advertising departments and may have in-house specialists do most of the work in-house.
Product manufacturers prefer to rely more on advertising agencies for these tasks, and their advertising managers act as a liaison between the company and the agency in such cases.
Own agency
Companies that need more careful control over advertising have their own agencies within the company. For example, large retailers are finding that producing advertisements themselves provides cost savings, as well as the ability to quickly reschedule. Agencies within firms perform most, and sometimes all, of the functions of an independent advertising agency. White Star Line's Liverpool-based advertising department planned and executed much of the Titanic's publicity.
Mass media
The third participant in the world of advertising is the media. Mass media are communication channels that convey the advertiser's message to its audience. Media organizations are engaged in:
selling space in newspapers, magazines, on street billboards and in mailing lists;
sale of time in broadcast media: radio and television;
the sale of space and time in electronic and other means, such as the World Wide Web;
assistance in the selection of advertising media and their analysis;
assistance in advertising production.
Representatives of the media themselves come into contact with the advertiser (or advertising agency) and try to convince them that the environment of this media is better than others for them as an advertising medium. A marketing specialist for media provider US West Dex (Yellow Pages directory) calls hundreds of potential Dex directory users. The purpose of such a call is to describe how the directory can be used, discuss various creative solutions, offer assistance in designing an advertisement, and describe the conditions for purchasing a place in the directory.
Mass media are obliged to deliver advertising messages in such a way that the delivery method is compatible with the creative concept. For Ball Park Franks, for example, the launch of its new hot dog packaging required detailed product information, product imagery and the inclusion of a famous personality - former basketball star Michael Jordan.
To fulfill the advertising message requirements, the magazine seems to be the best choice for Ball Park. The combination of message and media was not chosen arbitrarily. Media personnel gather information about its audience to match the message with the delivery medium. Ball Park's new hot dogs are designed for kids about to start school, so print ads have appeared in magazines such as Sports Illustrated, Jr., Jack "n" Jill and Star War Kids.

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Title: Advertising. Principles and Practice
Author: William Wells
Year: 2006
Genre: Marketing, PR, advertising, Popular about business, Foreign business literature

About the book by William Wells “Advertising. Principles and Practice"

The book will help you understand the rules of planning, creating and evaluating advertising in modern conditions. It covers all aspects advertising business, from explaining the role of advertising in society to specific recommendations for conducting advertising campaigns in various industries, describing advertising strategies, analyzing the impact of advertising on marketing, consumer behavior, and much more. You'll discover the world's best advertising campaigns, their goals and the rationale behind them. creative ideas. You will learn how ideas were developed and implemented, how important decisions were made, and what risks the creators of the best advertising solutions faced. The authors studied real documents related to the planning of the advertising campaigns described in the book and talked with the people involved in their development. This was done with one purpose: to teach the reader the principles and practices that lie behind successful promotion.

The book will certainly be useful to university students, students of MBA programs, as well as practicing advertisers. Advertising: Principles and Practice is a must-read book to learn everything about effective advertising.

7th edition.

On our website about books lifeinbooks.net you can download for free without registration or read online book William Wells "Advertising" Principles and Practice" in epub formats, fb2, txt, rtf, pdf for iPad, iPhone, Android and Kindle. The book will give you a lot of pleasant moments and real pleasure from reading. You can buy the full version from our partner. Also, here you will find last news from the literary world, learn the biography of your favorite authors. For beginning writers there is a separate section with useful tips and recommendations, interesting articles, thanks to which you yourself can try your hand at literary crafts.

University of Minnesota

University of Colorado

University of Denver

Principles & Practice 7th edition

© 2006, 2003, 2000, 1998, 1995 by Pearson Education Inc.

© Translation into Russian, Russian edition by Peter Press LLC, 2008

Mandate for Effectiveness

At a representative conference of leading advertising industry specialists, Peter Seely, formerly one of the top managers Coca-Cola And Apple, and currently independent consultant, said: “Soon we will be able to establish the necessary accounting and control in advertising activities.” To this, Rance Crane, editor of Advertising Age, remarked: "That's easier said than done."

Advertising today finds itself in a difficult position. With the economy slowing, the aftermath of 9/11, and new technologies that could threaten traditional advertising practices, there is an urgent need to justify the enormous amounts of money spent on advertising.

Advertising can survive and develop if it pays due attention to the issues of accounting for costs and achieved results. Advertisers want to know that their advertising works and is effective. This means that the goals they set for advertising are being successfully achieved. Customers expect to see evidence that their costs are worth it, and this usually comes in the form of increased sales.

The main idea of ​​this book is that advertising must be effective. Therefore, we will tell you about all the difficulties and complexities of advertising strategies that provide effective result– creating advertising that works, is memorable, touches people’s feelings and makes them take action. Because we're going to be focusing on effectiveness, most of the chapters will focus on advertisements that have won prestigious awards for achieving this particular metric.

Advertising is both a science and an art, which makes it difficult to answer questions about accountability and effectiveness. The advertising industry has already found answers to some questions, but is still searching for answers to others. As we begin to explore the history of the development of advertising principles and practices, you will also join this quest.

In ch. 1 and 2, which form part 1 of this book, we will be introduced to the two professional fields of advertising and marketing. We will define them, identify their basic principles, and describe the practices they employ. In ch. 3 these professional fields will be examined in terms of their place in society - the contribution they make to socio-economic development and the criticism they attract.

Part 1 gives us the big picture of advertising. Other sections of the book provide the detail and detail you need to become an informed user, and maybe even a creator, of the advertising you see around you. It's a fun activity and we hope you'll be interested in the stories we're about to tell you about great advertising campaigns.

Chapter Objectives

After reading this chapter, you will be able to:

3. Identify key actors and their roles in the implementation of advertising.

6. Analyze the changes taking place in the world of advertising.

For Volkswagen a happy time came when her advertising, created under the guidance of a Boston agency Arnold Worldwide, began to constantly win various awards. Since the mid-1990s. advertising Volkswagen received many prizes and awards for both efficiency and creativity.

Most recently, an award was awarded to an advertising campaign that offered the buyer a New Beetle car model with an iPod device from the company Apple. The campaign slogan highlighted the aesthetic, functional and technological similarities between the iPod and the New Beetle to remind people what makes the new car so special.

This is how the campaign was carried out.

By 2003 Volkswagen and her agency Arnold Worldwide realized that the New Beetle was no longer arousing interest among buyers, since it had been produced unchanged for five years. New products, such as the Mini Cooper, began to actively push the New Beetle out of its previously won positions. Last year's successful launch of the Beetle convertible also contributed to a decline in New Beetle sales.

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