Advertising and the Changing Communication Environment

Finding a cost-efficient plan for reaching increasingly in-control and demanding consumers is the major challenge of contemporary advertising  Convergence: coming together or intersecting different components of some related system.

1. Technological Convergence: radio programs on computer
2. Business Convergence: (consolidation) merging companies
3. Content Convergence: primary expense, using commercial content

Dual problem: advertisers must choose a media plan from an ever-expanding number of options and they must develop advertising messages that consumers will invite to share with their time.  Citizen media is referred to as the new relationship between advertisers and consumers. User-generated media (blogs) have become important in marketing plans. (free information).  New technology and interactive media is a central component.

Advertising as a Communicating Tool.  The fundamental principle of good advertising is that it must be built around the overall marketing plan and execute the communication elements of a more far-reaching marketing program. (ex: increasing brand awareness 25% increases growth).  The Marketing Plan: Overall goal(s) of plan, marketing objective, marketing strategy, situational analysis, problems/opportunities, financial plan, research.  The Advertising Plan: Prospect Identification, Consumer Motivation, Advertising Execution, The Advertising Budget and Allocation

Advertising makes proftiability based on it’s¬†Return-on-investment (ROI):¬†measures the efficiency of a company. How many dollars are produced for every dollar spent. ¬†Involvement based ROI measures may give advertising less than its full worth in the marketing process. ¬†Clients demand media and ad agencies to measure advertising success on the basis of effective communication rather than audience exposure. ¬†The emphasis on short-term audience involvement runs the risk of devaluing the long-term value of advertising.

Integrated Marketing is broken down into the Marketing Mix the combination of 4 marketing functions (product, price, distribution, and communication) plus advertising, used to sell a product.  Communication is broken down into 4 parts:

1. Personal Selling: The most effective means of persuading but also the most expensive which makes it impractical in initial selling stages. It is used in business to business marketing as a follow-up, to close a sale, or develop a long-term relationship resulting in a sale.
2. Sales Promotion: Activities that supplement both personal selling and marketing, coordinate the two, and help to make the effective (ex: displays, coupons, giveaways). They are used to persuade distributors to carry a brand/product. They are short-term so no to lose money.
3. Public Relations: Communication with various internal and external publics to create an image for a product or corporation. One of the fastest growing sectors. It is perceived as having higher audience credibility than advertising but is viewed as a compliment not a competitor. Media controls where, when, and if product will be carried.
4. Advertising: A message paid for by an identified sponsor and usually delivered through some medium of mass communication. It is persuasive communication.

The reliance on the marketing mix strategy allows evaluations that view promotion as a coordinated mix of elements.  Companies are demanding programs to speak with one voice, meaning demonstrate a consistent overall theme.  Integrated Marketing Communication (IMC): The joint planning, execution, and coordination of all areas of marketing communication. More concerned with total effectiveness

Advertising: An Institutional Approach

For Consumers: Its economic role is disseminate product information that allows consumers to know that products exits, to give consumers info about competing brands, and to permit consumers to make intelligent choices among product options.  Its social and cultural (inadvertent) role in communicating not only product information but also social values. Advertising can create that Need driven behavior usually to solve a problem.  It can be utilitarian (buy new car for transportation) and hedonistic (buy new car to impress neighbor).  Advertising’s role is to provide info as efficiently and economically as possible to potential buyers.  Introducing new products/services

What Advertising Does For Business

Primary role of advertising include contributing to new-product launching, increasing consumer brand loyalty for existing brands, and maintaining the sales of mature brands.  Exchange theory suggests that market transactions will take place only to the extent that both buyers and sellers see value in the process. Built on positive mutual relationships.

What Advertising Does For Society

Advertisers convey subtle messages about society by the manner in which their advertising portrays products and services.  Challenges for contemporary marketing are monitoring changes so that a company is aware of what is happening in a society, creating products and services compatible with changing values, and designing marketing messages that reflect and build on the values target markets and individual customers hold.  Advertising benefits society by providing revenues to support a diverse and independent press system protected from government and special interest control.

Advertising to Diverse Publics

Regardless of its intended recipients, advertising communicates messages to various groups and individuals who in turn interpret these messages in the context of their own interests.  A single advertisement might be directed to a number of publics:

1. Distribution Channel: The various intermediaries, like retailers, that control the flow of goods from manufactures to consumers.
2. Employees: most important assets of any company. Advertising messages may mention quality workmanship that goes into a product and feature employees in it.
3. Current and Potential Customers: building brand awareness to attract new customers and enhancing brand loyalty to current customers.
4. Stockholders: high brand awareness and company’s good reputation contribute to maintaining higher stock prices.
5.¬†The Community at Large: local companies use advertising to be viewed as a ‚Äúgood neighbor‚ÄĚ ¬†It‚Äôs important to keep ALL publics in mind during advertising


Advertising and the Marketing Channel

The marketing channel illustration is an important aspect of marketing.  Industrial good manufacturers are a manufacturer of finished product and wholesalers, retailers, and consumers.  A well-organized channel creates efficiencies through specialization in the movement of the channel.  Effective communication, including advertising, is crucial of for market channel efficiency.  The technology of the Internet has changed the longtime relationships among various elements of the marketing channel.  For example, travel agents have phased out and digital cameras are now taking over the film industry.  Mainly marketing and communication channels have changed.  It has not changed the fundamental decision-making process, but the way we communicate.  Regardless of its audience, effective advertising must be successful on 2 levels: (1) communicating (2) carrying out marketing goals.

There are different forms of directness and duration in relation to advertising.  How much of the total selling job should be accomplished by advertising and over what time frame must be planned.  Advertising is designed to produce an immediate response by a product purchase that is called direct action, short-term advertising.  Advertising used as a direct-sales tool, but designed to operate over a longer time frame is called direct action, long-term advertising.  Indirect advertising affects the sales of a product over the long term by promoting general attributes of the manufacturer, not specific product characteristics.  Long-term advertising is hard to measure.



What is effectiveness?  Cause you to buy, persuade, pressure, and cause.  They need to be POWERFUL.  Behaviorism.  Needs, urges, and instincts we cannot control.  Food, water, shelter.  Romance, fear, aggression.  Conditioning: Can be controlled by others, Classical: modification of involuntary reflex behavior.  Behaviorist view on Advertising: Create stimuli (ad) to condition responses that benefit the product, Overt (very sexual), and subliminal

Theory of Representation. ¬†Symbolism. ¬†Isolated textual characteristics= specific meaning. ¬†Persuade You to Buy:¬†NOT Powerful and¬†Rationalism:¬†Needs and wants are individual, known, and controllable¬†‚Äúenlightenment‚ÄĚ individual.

Rationalist View on Advertising delivers dependable information. ¬†Theory of Representation is¬†Denotation: clear reason why and¬†Pressures You to Buy. ¬†It can be¬†POTENTIALLY Powerful and create¬†Culturalism. ¬†Born into and taught general ways of understanding the world. ¬†Commonsense ‚Äúnatural.‚Ä̬†‚ÄúPressure‚ÄĚ can be¬†Negative. ¬†For¬†Example, if you don‚Äôt want to be alone buy this produce. Positive one would be one to have more friends. ¬†Culturalist View on Advertising: uses existing pressures in the benefit of campaign. ¬†Theory of Representation. ¬†Signification:¬†Meaning not in the message, made through associations,¬†Textual and social,¬†Learn and internalize the meaning of particular association,¬†Ads use and remake meanings.


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