This is one of the most exciting times to take an advertising course because of all of the

Copyright@2012 Pearson Education, Inc., publishing as Prentice Hall. 1 Part 1 Enduring Principles in Times of Turmoil This is one of the most exciting times to take an advertising course because of all of the changes in the industry – new technology, new media, new types of consumers and media users, new ways of looking at marketing communication, and new economic challenges.It is also a great time to study the basics of advertising because this is the era of “back to basics.” As you will see in this book, effective advertising and marketing communication are founded on basic, enduring principles. These principles are central themes in this

textbook:

1.Brand. Build and maintain distinctive brands that your customers love.

2.Position. Identify your competitive advantage in the minds of consumers.

3.Consumer. Focus on consumers and match your brand’s strengths to consumer needs and wants.

4.Message. Identify your best prospects and engage them in a brand conversation.

5.Media. Know how to best reach and connect with your target audience.

6.Integrate. Know how to connect the dots and make everything in the marketing communication toolkit work together.

7.Evaluate. Track everything you do so you know what works.The principles and practices described in this book provide direction even when the economy crashes. That does not mean that brand communication is unchanging. In fact, the practices are dynamic and continually adapting to changing marketplace conditions.But the basic principles are unchanging even in times of change.In the chapters that follow, these principles and practices will be explained, as will the key practices of advertising and marketing communication. In Part I, the first two chapters focus on defining advertising and marketing and explaining where marketing communication fits. Chapter three analyzes the ethics and social responsibility of marketing communication.Advertising & IMC Principles and Practice 9e Sandra Moriarty Nancy Mitchell William Wells (Instructor Manual All Chapters, 100% Original Verified, A+ Grade) 1 / 4

Chapter 1: The New World of Marketing Communication

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◆CHAPTER CONTENT

CHAPTER KEY POINTS

1.What is advertising, how has it evolved, and what does it do in modern times?

2.How have the key concepts of marketing communication developed over time?

3.How the industry is organized – key players, types of agencies, and jobs within agencies?

4.How is the practice of advertising changing?

CHAPTER OVERVIEW

This chapter defines advertising, explains its basic principles, defines the role it plays in our society, and identifies seven different ways in which it is practiced today. It also explores the industry’s evolution, outlines its key components, and identifies its key players. The chapter concludes with a discussion of how the practice of advertising is changing.

CHAPTER OUTLINE

WHAT IS ADVERTISING?

•The purpose of advertising has always been to sell a product, which can be goods, services or ideas. Although there have been major changes in recent years, the basics of advertising are even more important in turbulent times. To better understand advertising’s development as a commercial form of communication, it helps to understand advertising’s definition and how its basic role has evolved over the years.

•Its focus has evolved through the following stages:

▪Identification. Advertising identifies a product and/or the store where it’s sold. This goes back as far as ancient times. Some of the earliest ads were simply signs with the name or graphic image of the type of store – cobbler, grocer, or blacksmith.▪Information. Advertising provides information about a product. Advances in printing technology at the beginning of the Renaissance spurred literacy and brought an explosion of printed materials in the form of posters, handbills, and newspapers. The word advertisement first appeared around 1655 and by 1660, publishers were using the word as a heading in newspapers for commercial information. 2 / 4

Chapter 1: The New World of Marketing Communication

Copyright@2012 Pearson Education, Inc., publishing as Prentice Hall.

3 ▪ Persuasion. Advertising persuades people to buy things. The Industrial Revolution accelerated social change, as well as mass production. It brought the efficiency of machinery not only to the production of goods, but also to their distribution. For widespread marketing of products, it became important to have a recognizable brand name. Also, large groups of people needed to know about these goods. P.T. Barnum and patent medicine makers were among the advertising pioneers who moved promotion from identification and information to a flamboyant version of persuasion called “hype” - graphics and language characterized by exaggeration or hyperbole, as shown in Exhibit 1.2.

• We can summarize a modern view of advertising with the following definition:

Advertising is a paid form of persuasive communication that uses mass and interactive media to reach broad audiences in order to connect an identified sponsor with buyers (a target audience), provide information about products (goods, services, and ideas), and interpret the product features in terms of the customer’s needs and wants.

This definition has a number of elements and the definition is changing because of new technology, media shifts, and cultural changes.

• Advertising is usually paid for by the advertiser who has a product to sell, although some forms of advertising, such as public service announcements (PSAs), use donated space and time.

• Not only is the message paid for, but the sponsor is identified.

• Although advertising began as one-way communication, digital media has introduced new forms of two-way and multiple-way brand-related communication.

• Advertising generally reaches a broad audience of potential consumers, either as a mass audience or smaller targeted groups. However, direct response advertising, especially those practices that involve digital communication, has the ability to address individual members of the audience. So some advertising can deliver one-to-one communication to a large group of people.

• In traditional advertising, the message is conveyed through many different kinds of mass media, which are largely non-personal messages. This non-personal characteristic, however, is changing with the introduction of more interactive types of media. A great deal of emphasis is now placed on word-of-mouth, which is now defined as personal communication through new media forms rather than “scripted messages in a paid format,” according to agency CEO Richard Edelman.

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Chapter 1: The New World of Marketing Communication

Copyright@2012 Pearson Education, Inc., publishing as Prentice Hall.

4 • Most advertising has a defined strategy and seeks to inform consumers and make them aware of a brand, company, or organization. In many cases, it also tries to persuade or influence consumers to do something. Persuasion may also involve emotional messages.

Is Advertising the Only Tool in the Promotional Toolkit?• It’s not the only tool, although it may be the biggest. In the United States, advertising is a $30 billion industry. Advertising is often seen as the driving force in marketing communication because it commands the largest budget, as well as the largest number of agencies and professionals. Tables 1.1 and 1.2 give some indication of the size and scope of the advertising industry.

• Advertising’s original purpose was to sell something, but over the years, other promotional tools with different sets of strengths have developed to help meet that objective. They include publicity or public relations, direct-response advertising, and sales promotion. These tools are also used to identify, inform, and persuade.The proper name for this bundle of tools is marketing communication (marcom), an umbrella term that refers to all forms of communication about a brand that appear in a variety of media.

Why Advertising?• In addition to marketing communication, advertising also has a role in the functioning of the economy and society. This is illustrated in the ‘1984” commercial that launched the Apple Macintosh. As you read about this commercial in the Matter of Practice feature in this chapter, note how it demonstrated all four functions – marketing, communication, social and economic.

Marketing and Communication Roles • In its marketing and communication roles, advertising transforms a product into a distinctive brand by creating an image and personality that goes beyond straightforward product features. As advertising showcases brands, it also creates consumer demand and makes statements that reflect social issues and trends.

Economic and Societal Roles • Advertising flourishes in societies that enjoy economic abundance, in which supply exceeds demand. In such societies, advertising extends beyond a primarily informational role to create a demand for a particular brand.

• Most economists presume that because it reaches large groups of potential consumers, advertising brings cost efficiencies to marketing, and thus, lowers prices to consumers. As demand grows, as well as competition, prices begin to drop.

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