Advertising: From Theory to Practice

1
Advertising From Theory to Practice

• MGTD12H3
• Professor Pankaj Aggarwal
• Fall, 2002

2
Topics of the Day

• What is Advertising
• Abridged History of Advertising
• Integrated Marketing Communications
• Administrative

3
The 5-Minute Advertising Quiz

• Try and identify the brands behind each of these
  slogans
• Diamonds are forever
• _______ kills bugs dead
• Just do it
• Fly the friendly skies
• Good to the last drop
• Breakfast of champions
• When it rains, it pours
• Reach out and touch someone
• The ultimate driving machine
• Let your fingers do the walking

4
A Formal Definition
Advertising is paid nonpersonal communication
from an identified sponsor using mass media to
persuade or influence an audience.
5
Advertising is

• Communication structured and applied employs
  verbal and non-verbal elements
• Non-personal Typically directed to groups of
  individuals mass communication.
• Identified Sponsor Often paid for by the
  sponsor.
• (Advertising v/s Public Relations?)
• Persuasive To win converts to a product, service
  or an idea. Make brand buyers into brand
  believers Leo Burnett.

6
Some facts about our weekly TV habits...

• Canadians watch 22.7 hrs. per week
• Women watch 5 more hours than men
• We watch more TV during the winter months (25
  hrs/week) relative to the summer months (20
  hrs/week)
• Canadians 60 spend 10 more hrs. than the
  national average

Source Cultural Statistics Program Television
Project, CRTC, 1999
7
Roles of Advertising

• Communication role Source, Message, Receiver
• Market/Marketing One of 4 Ps Essential to meet
  marketing objectives, IMC
• Economic role Integral part of free-economy
• There is no way for the American economic system
  to function without advertising. There is no
  other way to communicate enough information about
  enough products to enough people with enough
  speed - John OToole
• Societal role mirrors fashion, design trends,
  even influences culture and belief systems

8
Abridged History of Advertising
Strategy Schematic 1900 Mnemonic Category B
rand 1930 Benefit (Reason Why) Category Bran
d Benefits 1950 Unique Selling
Category Brand Benefit Proposition Bra
nd 1960 Brand Personality Category Brand Benef
it Brand Personality
9
Abridged History of Advertising
Era of Customer (1975-2000) Key Strategic
Developments Change in marketplace Change
in media New Concepts Brand
Equity Integrated Marketing Communications
10
Planning Cycle 3C - 4P Framework
Situation Analysis 3 Cs
Implementation 4 Ps
Strategic Choices S-T-P
Where are we? 1. Assess Customer needs
Companys strengths Competitors position 2.
Identify Market Opportunities
How do we get there? 1. Marketing programs
Product Price PROMOTION Place
Where do we want to be? 1. Select Target
segment Competitive position 2. Consider
Alternative strategies
Are we getting there? Feedback
11
Building Brand Equity

• A brand possesses equity to the extent that
  consumers are
• familiar with the brand and have stored in
  their memory
• favorable, strong and unique associations.
• Marketing communications contribute to brand
  equity by
• establishing the brand in memory and linking
  strong, unique
• and favorable associations to it.
• Brand equity (through marketing
  communications) will be
• the only sustainable competitive advantage of
  organizations
• into the 21st century. D. Schultz, 1989

12
Benefits From Brand Equity A Differential
Response to the Marketing of the Brand.
Greater loyalty and less vulnerability to
competitive marketing actions and
crises. Larger margins. Less elastic
consumer response to price increases and more
elastic response to price decreases. Greater
trade cooperation and support. Increased
marketing communication efficiency and
effectiveness. Possible licensing
opportunities and more favorable brand
extension evaluations.
13
Integrated Marketing Communications (IMC)
Unified, coordinated effort to promote a
brand through the use of multiple communication
tools that speak with a single voice as a way
to provide clarity, consistency, and maximum
communications impact.
14
Integrated Marketing Communication (IMC)

• Integration across communication tools
• advertising
• sales promotion
• public relations
• direct marketing
• packaging and brand name
• web site
• Integration across target audience
• brand users
• new category users
• investors
• employees
• Integration over time

15
IMC and Brand Equity
Advertising
Direct Marketing
Public relations
Brand
Web site
Sales promotion
Packaging and Brand Name

• The brand is the integrating factor around which
  all marketing
• and marketing communication should be built.

16
Course Objectives

• Provide students with theories, models and
• tools to
• develop a marketing communication plan and
• evaluate marketing communication strategies and
  tactics.
• Teaching Methods
• Lectures/Discussion
• Cases/Exercises

17
Course Outline

• Read through
• ve -ve
• Concepts simple Class Participation
• Book bedtime reading Expect total involvement
• Fun course Lots of work
• Can do very well High expectations

18
My Philosophy

• Lectures should complement the book not just
  repeat it.
• Learning takes place by sharing Class
  participation, group assignments and project
• Karma theory focus on learning not the grades

19
Performance Evaluation

• Individual Component
• Class Participation 10
• Mid Term Exam 30
• Group Component
• Ad Critique 10
• Case Assignment 10
• Group Project 40

20
Admin Stuff

• Lectures Thursdays 3.00 pm to 5.00pm
• Text Introduction to Advertising and Promotion
  An Integrated Marketing Communications
  Perspective, George E. Belch and Michael Belch,
  Irwin, 5th edition, 2001.
• Office Hours Wednesdays 11.00am to 12.00 noon or
  by appointment.
• Email aggarwal_at_utsc.utoronto.ca
• Homepage www.utsc.utoronto.ca/aggarwal
• WebCT http//courseware.utsc.utoronto.ca
• Phone [phone]

21
Important Dates

• September 19 (Week 2) Names of Group members
• October 10 (Week 5) Print Ad Critique
  Presentation
• October 24 (Week 7) Mid-Term Examination
• November 14 (Week 10) BMW Case Write-up
• November 28 (Week 12) Group Project/Presentations

22
Take-Aways

• Advertising Paid, non-personal communication, by
  identified sponsor, to persuade
• Economic, and social role
• Build brand equity
• IMC an important consideration

23
For Next Week

• 1. Think of a recent purchase that you may have
  made. Complete the following steps for your
  buying process.
• Problem Recognition Why you needed the product?
• Information Search What information you sought?
• Alternative Evaluation What other options were
  considered?
• Purchase Decision How did you decide what to
  buy?
• Post-purchase Did you learn anything more after
  buying?

24
For Next Week

• 2. Do the following exercise answer these
  questions about the ad that you see.
• What consumer need is being addressed?
• How would consumers perceive the brand? Why?
• What are the important attributes highlighted?
• Is there anything in the ad to help consumer
  learning?