Advertising

Knowledge Center

   

What is Advertising? Description of Advertising. Explanation.

Contents

Premium

 

Famous examples of advertising...What is Advertising?

Advertising is any paid form of (non-personal) communication and marketing used to convince or persuade viewers, readers or listeners about the benefits of certain products, services, a company or even ideas.

Typically the aim of advertising is to influence consumption behavior with respect to commercial products or services, but the purpose of advertising may also be educational, political or ideological.

Typically the advertiser has to pay for message placement, except for self-advertising.

Advertising can be Business to Consumer, Business to Business. A special form is Trade Marketing.


How does advertising work?

The acronym AIDA describes the stages of an advertising process: Attention, Interest, Desire and Action.

Advertisers use Positioning trying to create a favorable perception of a product or service, Brand Personality, or Corporate Reputation in the mind of the prospect.


Forms of Advertising

Advertising may take many forms, which depend partly on the use of various channels:

Definitions of Advertising

  •  The non-personal communication of information usually paid for & usually persuasive in nature, about products (goods & services) or ideas by identified sponsor through various media. (Arens, Wei Gold, Arens 2010)
  • Any paid form of non-personal communication about an organization, product, service, or idea from an identified sponsor. (Blech & Blech 1998)
  • Paid non-personal communication from an identified sponsor using mass media to persuade or influence an audience. (Wells, Burnett, & Moriaty 1998)
  • The element of the marketing communication mix that is non personal paid for an identified sponsor, & disseminated through channels of mass communication to promote the adoption of goods, services, person or ideas. (Bearden, Ingram, & Laforge 1998)
  • An informative or persuasive message carried by a non personal medium & paid for by an identified sponsor whose organization or product is identified in some way. (Zikmund & D'amico 1999)
  • Impersonal; one way communication about a product or organization that is paid by a marketer. (Lamb, Hair & Mc.Daniel 2000)
  • Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor. (Kotler et al., 2006)

Defining an Advertising Strategy

A key tool used by marketers to define advertising strategies for products is McCarthy's Marketing Mix (1960s), also called the 4 P's: Product, Price, Place and Promotion.

Later, Booms and Bitner defined the Extended version of the Marketing Mix, also called the 7 P's (add: People, Process and Physical Evidence) which is preferable to design campaigns for intangible products and services.

The effectiveness of advertising can be measured by the advertising elasticity of demand. This measures the percentage increase in demand divided by the percentage increase in advertising spending (a number of other factors are also involved to correct for external influences).


From mass to segmented to individual marketing

In the past, most advertisements were aimed at the general public. This is changing due to following causes:

  1. Target Marketing: the process of communicating, marketing and selling products or services to groups of consumers with similar characteristics (identified via market segmentation)
  2. Niche Marketing: advertisers increasingly want to reach small but profitable market segments with increasingly custom-made products or services.
  3. Internet Technology: increased ability and efficiency to distinguish, target and fulfill individual customer profiles and needs.

Importance of advertising

  • For the economy: The global spending on advertising is immense which makes it a major economic activity by itself.
  • For the media: Advertising can be (an important component of) a business model, as is valid for TV, radio, newspapers, magazines as well as search engines and web sites. Most media outlets would not be in business without revenue generated through the sale of advertising.
  • For advertisers: For many advertisers advertising is crucial to gain interest for their products and services.
  • For consumers: Advertising can have an informational or even educational value for the consumer.

Advertising Agencies

Designing and managing large advertising campaigns is complex and time-consuming. Multiple specialized skills are needed. While large companies are able to manage certain advertising activities themselves, a lot of advertising activities are also traditionally outsourced to specialized advertising agencies.


Typical roles and responsibilities of professionals of advertising agencies include:

  • Account Manager. Locates, acquires and negotiates with (potential) clients. Develops advertising campaigns with the client and is the interface between the advertising agency and the advertiser.
  • Creative Manager. Generates ideas, designs concepts and creates the final advertisement.
  • Market Researcher. Assesses a client’s market situation, researches and analyses customers and competitors. Tests campaigns with Focus Groups.
  • Technical Specialist. Graphic design, film and audio production, copywriting, web programming.
  • Media Planner. Responsible for placing advertisements in appropriate and most effective advertising media.
Advertising Special Interest Group


Special Interest Group (855 members)


Advertising Forum  

Recent topics

  Sustainable Advertising and Marketing
Where most organizations focus on sustainable production practices, the sustainability with regard to the materials of the products, most organization...
     
 
  Different Types of Online Advertising
Since advertising is more and more moving to online advertising, Campbell, Cohen and Ma present a quite useful list of types of online ads
     
 
  Nudity in Advertising and Brand Recall
I am interested in persuasion theory and it's practical application, because I am conducting a research on "Nudity in Advertising and Brand Recall" an...
     
 

Best Practices - Advertising
  Deception in Advertising
Deception in advertisement is prominently used by advertisers to influence the buying beliefs of customers. In 21st Century, customers have become mor...
     
 
  Measuring the Effectiveness of Advertisements
The effectiveness of advertisement can NOT be determined only by measuring the increase in sale, because there are various other factors that c...
     
 
  Impact of Advertising
How to measure the impact of advertising on buying a product by customers? Is there any proof that a particaular advertisement has increased the sales...
     
 
  How to Target Top Managers?
What are popular advertising sources when one wants to target the top level of management?
There are many method of advertising like print media,...
     
 
  From Advertising to Public Relations?
I feel that the effect of advertising is reducing and the impact of recommendations and influences is growing - does that mean that advertising is tak...
     
 
  Theory of Economic Information - Definition of Advertizing Elasticity
The percentage increase in demand divided by the percentage increase in advertising spending is NOT a valid definition of advertising elasticity.
...
     
 



All you need to know about management


  Event Sponsoring and Small Firms
Allowing big companies to sponsor an event normally minimizes the visibility of the smaller companies, through the large banners and lots of attention...
     
 
  Women in Advertisements
How do media generally project women in advertisements? And what is the social relevance of this?...
     
 
  Measuring the Effect of Promotional Marketing
How could one measure the success of promotional marketing, aside from sales figures? (both concretely and not)....
     
 
  Communication Objectives of Advertising
Normally, advertisements have one or more communication goals, which are processes your mind will be going through before purchasing a particular prod...
     
 
  Modern Trends in Advertising
Hi,, what are the modern trends in advertisements? What kind of new methodologies or technologies are being used?...
     
 
  From Persuasion to Engaging Consumers in 4 Spheres
Most advertising messages as we all know them are typically:
- Transmitted widely (not precisely targeted)
- Intrusive (pervasive, without c...
     
 
  Cultural Differences in Advertising
Which factors are causing the climate for advertising to differ among countries?...
     
 
  Importance of Funnel
Why is the funnel important for the development of an advertising campaign?...
     
 

Expert Tips - Advertising
 

Do Mobile Ads Work? what Kind of Mobile Ads are Most Effective?

 
 
 

Use an English Slogan or a Slogan in the Local Language?

 
 
 

Childrens' Understanding of Advertizing: Three Stages of Consumer Socialization

 
 
 

New Radical Advertising Methods as a Consequence of Jaded Audiences

 
 
 

Mobile Apps or Mobile Ads?

 
 
 

Understanding Why Customers Buy: Katz Functionalist Theory of Attitudes

 
 



Advance yourself in business administration and management



Resources - Advertising

Media Selection: Media Characteristics, Types, Advantages and Disadvantages

 

Main Concepts of Mass Communication Management

 

Philip Kotler on Today's Relevance of Mass Advertising

 

Funny Intro to Marketing Concepts in 2 Minutes

 

Overview of Advertising: Concept, SWOT, Major Techniques

 

Green Advertising Claims, Regulations and Green Power

 
 

News about Advertising


     
 

Videos about Advertising


     
 

Presentations about Advertising


     
 

Books about Advertising


     
 

More about Advertising


     



Accelerate your management career


Compare also: Product Life Cycle  |  Target Marketing  |  Positioning  |  Co-Marketing  |  Cross-Branding  |  Synchromarketing  |  Tie-in Marketing  |  Subliminal Advertizing  |  Ambient Advertising

Special Interest Group Leader

 
 

Return to Management Hub: Communication & Skills  |  Marketing


More on Management  |  Return to Management Dictionary  | 

 

This ends our Advertising summary and forum.



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2018 12manage - The Executive Fast Track. V15.0 - Last updated: 10-12-2018. All names ™ of their owners.