I

N

T

R

O

D

U

C

T

I

O

N

A

D

V

E

R

T

I

S

I

N

G

T

O

Lecture-1

Prepared By: Kazi Mashfiq Uddin Ahmed

Learning Objective:

Industries all over the world once dominated by very few marketers are now crowded with many new competitors that span the globe. Often new businesses can compete more easily because they are small, more flexible & target specific rather than mass market. Thanks to new technology that makes advertising more cost effective. Advertising is now available to marketers of all sizes.

After studying lecture–1 you should be able to Know:

What is Marketing & what is Relationship Marketing,

Know what is Marketing MIX,

Know what is Advertising & why Advertising is Important,

Identify various types of Advertising,

Understand the Roles of Advertising,

Identify the Functions of Advertising & Identify the players of Advertising world,

Identify the Current Advertising Issues

Marketing: (Special Topic) : Marketing is a process of Planning and Executing the Pricing, Promotion and Distribution of Ideas, Goods & Services to create connections that satisfy individual & firm’s objectives.

Relationship Marketing: (Special Topic): Companies these days are developing and sustaining Relationship with their customers. Studies have shown that reducing customer Complains/Problems by just 5% can increase future profit by as much as 30-90%.

Practicing Relationship Marketing depends on several factors: Consumers desire Superior Customer Value which includes; Quality Products & Services, Competitive Price, Convenient to Purchase, Delivered on Time, New Technology and Excellent Customer Service etc.

Marketing MIX: (Special Topic): Marketing Mix consists of 4 Ps available and the basic task of marketing is to combine these 4 Elements into a marketing program to attract potential customers. 4 Ps are:

Product

Price

Place/Distribution

Promotion

Advertising is a PAID Non-Personal communication from an identified sponsor using Mass Media to persuade or influence an audience. Sometime for public service announcement Space & Time may be donated.

Importance of Advertising: (See Text Book; Page # 06) :

Advertising is the best-known and most widely discussed Form of Promotion, probably because of its popularity. It is an important tool particularly for companies whose products & services are targeted at mass consumer market, it can be a very cost-effective method for communicating with large audiences,………..See Text.

Interactive Advertising

Public Service Advertising

Institutional Advertising

Business –To – Business Advertising

Direct Response

Advertising

Directory Advertising

Political Advertising

Retail or local

Advertising

Brand Advertising

Types OfAdvertising

4 Roles Of Advertising

The Marketing Role

The Communication Role

The Economic Role

The Societal Role

The Marketing Role

Marketing is the process a business uses to satisfy consumer needs and wants through goods and services. The particular customers at whom the company directs its marketing effort constitute/refers the Target Market. The tools available in marketing include Product, Price, Place and Promotion/Marketing Communication. These 4 tools are collectively referred to as the Marketing Mix

Communication Role

Advertising is a form of Mass Communication. It transmits different types of market information to match buyers and sellers in the marketplace. Advertising both Informs and Transforms the product by creating an image to the Target Market.

Economic Role

Advertising reduces the price elasticity of demand. So an Ad should focus on Product Quality, Variety of Selection and would avoid mentioning Price or Discounts. Advertising can increase Price Elasticity by increasing the number of brands considered. The more substitutes consumers believe exist, the more price sensitive they are. Price Elasticity Is a measure of the sensitivity of demand to changes in Price.

Social Role

Advertising has a number of Social Roles. It informs us about new and improved products and teaches us how to use these innovations. It helps us compare products and features and make informed consumer decisions. Example: To be discussed in the tutorial session.

Functions of Advertising:

Provide product and brand information: (See Page # 11) Many Ads are full of information, providing with relevant information that will aid decision making to purchase and is still the main function of Advertising.

Provide incentive to take action: (See Page # 11) Even though consumers are dissatisfied with their current Products or Services but they’re Scare to Adopt new products or services.

Provide reminder and reinforcement: (See Page # 11) Some consumers forget What and Why they bought a particular brand like; Microwave or Automobile. Advertising must remind the consumer constantly about the Name of the Brand, its Benefits, Value etc. Most TV Advertising seems to provide this function.

FIVE players of Advertising:

The Advertiser

The Advertising Agency

The Media

The Vendor

The Target Audience

Advertising can be defined in terms of those who play important roles in brining Ads to the consumer.

The Advertiser: (See Page # 11) Advertiser is the person/organization which usually initiates the Advertising process. The Advertiser also makes the final decisions about the Target Audience and the Media that will carry the Advertising, the Size of the Advertising Budget and the Length of the Advertising Campaign.

The Advertising Agency: (See Page # 11) 2nd player in the Advertising world is the Advertising Agency. Usually the Advertiser hires independent Agencies to Plan and Implement part or all of their Advertising efforts. This working arrangement is known as the Agency-Client partnership.

The Media: (See Page # 11) The third player in the Advertising world is the Media. The Media are the Channels of Communication that carry the messages from the Advertiser to the Audience. Medias are responsible to do the following.

The Vendor: (See Page # 11) 4th player in the world of Advertising is The Vendor who assists Advertisers, Advertising Agencies and the Media. Members of this group are also called Consultants or Self-Employer Professionals. Vendors usually deal with Copy-writes, Graphics, Photographs, Appropriate Songs etc.

The Target Audience: (See Page # 11) Final player in the Advertising process is the Target Audience. All strategy starts with the customer.

Current Advertising Issues:

Today Advertising Industry is affected by Changing Technology. Additional changes involve customer orientation in a truly Global World. Here we will examine several following current trends:

Interactive Advertising: Today some experts believe that technology, especially Interactive Technology will change the face of Advertising completely. But it is not yet available to majority customers. Even when it becomes available, its main purpose will be to gather and evaluate Information, Not Advertise. However Advertise will need a different kind of creativity. Traditional Advertising is Mass Media will continue to be appropriate in a number of situations

Integrated Marketing Communication (IMC): (See Page # 22) IMC is the practice of unifying all marketing communication tools so that the company can send a persuasive message to Target Audiences that promotes company goals. Marketing Communication tools include such marketing areas as Advertising, Sales Promotion, Direct Marketing, Public Relations, Packaging and Personal Selling

Globalization: (See Page # 23) Another trend that continues to affect Advertising is Globalization. The Advertising challenge is to practice Global and Local Advertising Simultaneously. So the standard of the Ad must be acceptable in all cultures of the world.

Niche Marketing: (See Page # 23) Although Advertising has gone global many Advertisers have moved toward tighter & tighter Niche Marketing. So instead of Mass marketing they target market segments. New technologies enable advertisers to reach select groups of consumers with selected media. Marketers now search for and implement media and marketing plans aimed at special selective markets.

Probable Questions

• What is Marketing? Describe Relationship Marketing and Marketing MIX.

• What is Advertising? Why Advertising is Important? Describe types of Advertising.

• Describe the Roles of Advertising. Identify the Functions of Advertising.

• Describe FIVE players of Advertising.

• Describe Current Advertising Issues.