Advertising Notes

Chapter 1: What is Advertising?

• Pervasiveness of Advertising: It's omnipresent and crucial for visibility.
• Integrated Marketing Communications (IMC):
  • Harmonizes messages from different sources.
  • A modern contrast to past isolated ad campaigns.
  • Builds a positive brand image and reputation.
• Marketing Communications:
  • Engages with customers using tools like TV ads, websites, social media.
  • Advertising is one part of marketing, aimed to persuade.

Definition of Advertising

• Communication from an identifiable source aiming to persuade action.
• Structured, using verbal and nonverbal elements.
• Paid for by sponsors, non-personal, delivered through media.

Goals of Advertising

• Persuades audiences to act, promoting goods, services, or ideas.

Marketing Basics

• Marketing creates and exchanges offerings of value.
• The Marketing Mix involves Product, Price, Place, Promotion.

Advertising vs. Marketing

• Advertising focuses on messaging, marketing covers more.

Advertising in Free-Market Economics

• Encourages competition, diversity, efficiency, and lower prices.

Functions of Advertising

• Differentiates and communicates product info, stimulates demand, builds loyalty.

Chapter 2: The Environment of Advertising

• Controversies:
  • Balancing ethical, social, and legal concerns.
• Economic Impact:
  • Advertising constitutes a small yet significant part of GDP.
  • Affects competition and consumer choices.
• Stereotypes and Ethics:
  • Addresses truthfulness, influence on children, and ethical advertising.

Regulatory Aspects

• Government Regulation: FTC, FDA, FCC regulate advertising practices.

Chapter 3: The Business of Advertising

• Key Players:
  • Advertisers, agencies, suppliers, media.
• Types of Agencies: Local, regional, national, international.

Compensation in Advertising

• Agencies earn through media commissions, fees, and markups.

Client-Agency Relationships

• Built through referrals and effective presentations.

Chapter 4: Targeting in the Marketing Mix

• Market Segmentation:
  • Dividing markets based on behavior, geography, demographics, psychographics.

The Marketing Mix

• Focuses on product, price, place, promotion.

Product Life Cycle

• Stages from introduction to decline affect marketing strategies.

Distribution

• Varies from intensive to exclusive, affecting product reach.

Chapter 5: Communication and Consumer Behavior

• Advertising as Communication:
  • Relies on creativity and truthful storytelling.

The Consumer Decision Process

• Steps: Evaluation of alternatives and post-purchase evaluation.

Psychological Processes

• Involves perception, learning, motivation.
  • Learning through cognitive and conditioning theories.

Consumer Motivation

• Driven by needs (informal) and wants (transformational).

Societal Influences

• Social classes, cultural norms, and subcultures impact purchasing decisions.

Key Concepts

• Communication process, consumer behavior elements, persuasion techniques, needs vs. wants.