1-1 Copyright © 2009 Pearson Education Canada CHAPTER 1 Advertising in a Marketing Communications...

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1-1 Copyright © 2009 Pearson Education Canada CHAPTER 1 Advertising in a Marketing Communications Environment

Transcript of 1-1 Copyright © 2009 Pearson Education Canada CHAPTER 1 Advertising in a Marketing Communications...

Page 1: 1-1 Copyright © 2009 Pearson Education Canada CHAPTER 1 Advertising in a Marketing Communications Environment.

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CHAPTER 1

Advertising in a Marketing Communications

Environment

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Learning Objectives

Assess the role of advertising and its relationship to marketing and other elements of marketing communications

Identify distinctions among the various forms of advertising

Identify and define the seven components of integrated marketing communications

Continued…

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Learning Objectives (cont.)

Explain the conditions that are necessary for advertising to be effective

Identify the basic social and business issues confronting the marketing communications industry in Canada

Describe the roles that laws and regulations play in guiding marketing communications programs in Canada

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The Importance of Advertising

Advertising is undoubtedly the most visible form of marketing, and its an industry that is continuously evolving due to rapid changes in technology.

Continued…

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The Importance of Advertising (cont.)

Advertising is all around us

Consumers underestimate the influence it has on us

Plays a major role in achieving brand and company objectives by helping to attract new customers and retaining current customers

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The Role of Advertising

Advertising is a paid form of marketing communication through the media that is designed to influence the thought patterns and purchase behaviour of a target audience.

Its primary role is to influence the behaviour of a target market (or target audience) in such a way that members of the target market view the product, service, or idea favourably.

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Advertising and Integrated Marketing Communications

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Integrated Marketing Communications

Involves the coordination of all forms of marketing communications into a unified program that maximizes the impact upon consumers and other types of customers.

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Integrated Marketing Communications (IMC)

It embraces many forms of communication:

Advertising

Public relations

Sales promotion

Personal selling

Event marketing and sponsorships

Direct-response communications

Interactive communications

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IMC

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Factors Affecting IMC

Multi-tasking consumers and new technologies

Media dollars moving toward digital media (Internet and mobile devices)

Database marketing allows consumers to be reached effectively and efficiently

Media planning is dominating over the creative component in advertising

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The Forms of Advertising

Consumer Advertising

Business-to-Business Advertising

Product and Promotional Advertising

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Consumer Advertising

Persuasive communications designed to elicit a purchase response from consumers.The major types of consumer advertising are:

National advertising

Retail advertising

End-product advertising

Direct-response advertising

Advocacy advertising

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Business-to-Business Advertising

Advertising directed by business and industry at business and industry.The major types of business-to-business advertising are:

Trade advertising

Industrial advertising

Service-industry advertising

Corporate advertising

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Product and Promotional Advertising

Advertising that informs customers of the benefits of a particular brand.Communicates a distinct reason why buying now is better than buying later

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Conditions Necessary for Using Advertising Effectively

For advertising to be effective, certain conditions should be positive. Market and Product DemandProduct Life CycleCompetitive AdvantageCompetitive EnvironmentProduct QualityManagement Commitment

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Issues in Contemporary Advertising

Transition to IMC

Adapting to New Technologies

Reacting to an On-Demand Media Environment

Continued…

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Issues in Contemporary Advertising (cont.)

Reaching the Mobile and Multi-tasking Consumer

Changing Business Environment

The Delivery of Inappropriate or Controversial Messages

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Sex in Advertising

Using sex appeal in an appropriate manner and for appropriate products seems natural, but gratuitous sex is something consumers shouldn’t have to tolerate.

Do you agree or disagree? Explain your position

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Extreme Advertising

Depicting dangerous or disturbing situations in advertising messages has come under much scrutiny in recent years.

Do you believe this type of advertising encourages young people to get involved in risky activities like what is depicted in advertisements? Explain your position?

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Laws and Regulations

The marketing communications industry in Canada is highly regulated.Regulation control comes from three primary sources:

Canadian Radio-Television Communications Commission (CTRC)

Advertising Standards Canada (ASC)

Competition Bureau

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CTRC

Independent public authority in charge of regulating and supervising Canadian broadcast and telecommunicationsGoverned by the Broadcasting Act and the Telecommunications Act.

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ASC

Industry body committed to creating and maintaining community confidence in advertising. Its mission is to ensure the integrity and viability of advertising through self regulation.

The Canadian Code of Advertising Standards is the principal instrument of self-regulation.

Continued…

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ASC (cont.)

The Code addresses the following concerns about advertising:

Accuracy & clarity of messagesDisguised advertising techniquesPrice claims“Bait and Switch”GuaranteesComparative advertisingTestimonials

Professional & scientific claimsImitationSafetySuperstitions & fearsAdvertising to children and minorsUnacceptable depictions & portrayals

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Competition Bureau

Responsible for the administration and enforcement of the Competition Act, a law that governs business conduct and marketing practices in Canada.The Competition Act contains criminal and civil provisions to address false, misleading, and deceptive marketing practices.