Lesson 1 ADVERTISING

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Lesson 1ADVERTISING
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Marketing mix

• PRODUCT
• PRICE
• PLACE
• PROMOTION (COMMUNICATION)

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COMMUNICATION MIX

• ADVERTISING
• SALES PROMOTION
• PERSONAL SELLING
• PR
• INTERACTIVE/INTERNET
• DIRECT MARKETING

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ADVERTISING

• structured and composed nonpersonal communication
  of information, usually paid for and usually
  persuasive in nature, about products (goods,
  services and ideas) by identified sponsors
  through various media

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Communication
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Advertising functions

• identify products and their source and to
  differentiate from others
• inform the customers about products and its
  features and places of sale
• to induce and persuade to buy
• to stimulate the product distribution
• to increase a product use
• lowering the cost of sales
• long-term customer-brand relationship building
• advertising delivers the message in the way it is
  easier to remember, better to understand, liked
  and admired

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Advertising History

• 3000 B.C.
• Gold coin for runaway slave

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Advertising History

• Preindustrial age (before 19th century)
• SIGNS

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Advertising History

• Industrialising age - started in 18th century -
  till WWI
• first ad agency in 1841 - ad space bought - ads
  done by advertisers
• 1839 -introduction of photography
• 1869 - planning, creating, executing for the
  exchange of commission

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Advertising History

• Industrial age - cca. 1900 - 1970
• started with consumer packed goods
• Coca cola, Wrigleys spearmint gum, Jell-O,
  Kellogs, Campbell soup
• 1920 - Radio birth
• after Black Friday 1929 - research development
• 1941 - TV introduction

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Advertising History

• 1940s and 1950s
• after war
• climbing the social ladder
• buying modern products (features that implied
  social acceptance
• USP - unique selling proposition (to
  differentiate from competitors)

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Advertising History

• 1960s
• shift from product features to product image or
  personality (Cadillac, Rolls Royce, Marlboro)

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Advertising History

• 1970s
• positioning era - ranking in consumers mind

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Advertising History

• 1980s - Postindustrial era
• environment issues
• demarketing appears
• spread of advertising networks

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Advertising History

• Where we were in Czechoslovakia in 1980s?
• no free market
• state managed consumption via advertising
  commodities

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Advertising History

• 1990s
• advertising losing in comparison to other forms
  of communication tools like direct marketing,
  promotion ...
• mid 90s - rediscovering the power of brands -
  money back to advertising

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Advertising History

• 21st Century
• digital era
• computers
• interactive
• internet
• data
• mobile

?
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Economic, Social and Regulatory Aspects
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Economic aspect of Advertising

• Effect on VALUE OF PRODUCTS
• Effect on PRICES
• Effect on COMPETITION
• Effect on CONSUMER DEMAND

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Social aspect of Advertising

• A lot of criticism
• deception
• subliminal
• effect on value system
• too much
• stereotypes
• offensiveness

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What about you?

• Your experience
• think of an ad that offended you lately and say
• why....

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Regulations

• The law
• Ethical code

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The law

• basic legal frame
• general requirements on advertising
• in line with economy competition and good morale
• no deceptive
• no hidden

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The law

• advertising cannot
• present what is prohibited
• insult dignity, national and religious feeling
• promote violence, induce law breaking
• present nudity in an offensive way
• threaten physical and psychical health
• .....

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The law

• bans or regulates advertising of
• guns and ammo
• alcohol
• tobacco
• baby food
• prescriptive medicine
• comparative advertising

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Comparative advertising

• allowed but there are rules
• not insulting the competitor
• true
• relevant comparison - same products
• ...

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The Law

• Zákon o vysielaní a retransmisii
• for distributers of broadcasting

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Code of Ethics

• administered by Rada pre reklamu (Advertising
  Standards Council)
• complaints to the ethics of advertising are
  administered by Arbitrary Council (Arbitrazna
  komisia)

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Members of RPR

• Allianz - Slovenská poistovna, a.s.
• Asociácia Direct Marketingu
• Asociácia internetových médií (AIM)
• Asociácia nezávislých rozhlasových a televíznych
  staníc (ANRTS)
• Coca-Cola Beverages, Slovakia, s.r.o.
• Ceskoslovenská obchodní banka, a.s.
• Henkel Slovensko, s.r.o
• Klub reklamných agentúr Slovenska (KRAS)
• KOOPERATIVA poistovna, a.s.
• McDonalds CR/SR

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Code of Ethics

• Basic principles
• Morale
• Honesty
• Social responsibility
• True

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Lesson 2BRAND
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What is a brand?
A mark of identification An indication of
origin Implies meaning and value
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What is a brand?

• transferrable asset
• an enduring asset

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Brand definition

• set of differentiating promises (intangible
  assets) that link product its customers.
• The brand assures the customer of consistent
  quality plus a superior value (both functional
  and emotional) for which the customer is willing
  to give loyalty and pay a price that brings a
  reasonable return to the brand.

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Benefits of branding

• Brands drive profitability and sales
• Provide an emotional reason for preference
• Justify premium pricing
• Protect from competitive attack
• Brands also improve marketing efficiency
• Integrate diverse marketing activity
• Amortise marketing investment

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Beyond Sales Efficiency Brands Are Important

• If this company were split up I would give you
  the property, plant, and equipment, and I would
  take the brands and trade marks .... and I would
  fare better than you
• John Stuart,
  Quaker

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Anatomy of a Brand
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Brand Heritage

• Brand Heritage is established by understanding
  what made the Brand famous
• Great Product
• Big Idea
• Over time these are often forgotten, and can be
  rediscovered by examining a Brand's Origins
• Product History
• Advertising History
• Corporate Culture

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Brand Identity

• Successful brands have distinctive points of
  difference which give them unique advantages
• Brand Essence
• Brand Belief
• Brand Personality
• Visual Identity
• The immutable soul of a brand

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Brand Belief

• Lies at the heart of the ideas that give the
  brand its Reason for Being
• Belief Brands are driven by visionaries with
  inspirational leadership outstanding
  communications
• They transform the marketplace
• They want to change the world and to benefit
  their customers by so doing
• Great brands lead consumers, not follow them.
  They offer an inspiring vision that consumers
  could seldom imagine.

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Brand Belief

• Colgate believes that people can face the world
  with more confidence if they know they have a
  healthy mouth.
• Uses the power of scientific knowledge to keep
  your mouth in perfect health
• IKEA believes it is unjust that only the rich
  should be able to afford well designed furniture.
• So, with a commitment to equality and innovation,
  IKEA provides a wide range of good design home
  furnishings at prices so low that the majority of
  people can afford them.
• Mercedes believes that precision is the key to
  control in life.
• It sets the quality standard for German
  engineering in the cars it builds
• Disney believes everyone should hold onto their
  childhood imagination
• So it designs fantasies that offer magical
  experiences
• Barbie believes that all little girls should be
  inspired to achieve their dreams.
• So it designs fun experiences that encourage
  girls to live out their fantasies

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Brand Identifiers

• The characteristics of visual identity by which a
  brand is recognised
• Logos
• Colours
• Graphics
• etc.

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Brand Personality

• set of characteristics by which a brand could be
  described if it was a person
• exercise describe 2 brands personalities

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Brand Essense vs. Brand Image

• Brand Image is very different from Brand Essence
• Brand Essence defines what a brand is, and so
  does not change
• Brand Image is the totality of how a brand is
  perceived
• Attributes, Benefits, Values, Personality
• Perceptions, and therefore Brand Image, can vary
  dramatically from one Target Group to the next

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Lesson 3Advertising Business
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Advertising industry
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Advertisers / local
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Cooperative ads

• vertical
• horizontal

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AdvertisersLocal vs. National
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Transnational Advertisers
Decentralized

• Divisions have ad agencies to handle product
  lines
• Brands within a product line handled by own
  managers
• Category managers for brand in each country

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Transnational Advertisers
Centralized

• Standardized approach in all countries
• Extensive research to ensure ad is basic and
  universal

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Agencies
Develop marketing and ad plans
AGENCY ROLES
Develop ads and promotions
Purchase ad space and time
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Agency people
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In-house agencies
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Suppliers