Lecture Advertising and promotion – Chapter 1: Where marketing communication began

Chapter 1 - Where marketing communication began: the development of advertising in Australia and New Zealand. The main goals of this chapter are: To define advertising looking at its importance and its function, to trace the history of advertising in Australia and New Zealand, to explore the changing advertising environment,...

Chapter Where marketing communication began: the development of advertising in Australia and New Zealand Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-1 Learning objectives To define advertising—looking at its importance and its function To trace the history of advertising in Australia and New Zealand To explore the changing advertising environment To introduce marketing communication concepts —such as consumer empowerment and engagement, the push–pull marketplace and interactive advertising, digital and social media— that will be fundamental to the rest of the book Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-2 Importance Structure & function Definition Future of advertising History Advertising News channels Empowered Consumers Changes in ad agencies Social media Interactive advertising Engagement Digital media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-3 What is advertising? Traditional Traditional definition definition Advertising paid form of non-personal non-personal communication communication communication about about about Advertising isis any any paid paid paidform form formof of ofnon-personal non-personal non-personal non-personal communication communication communication about about about an an organisation, organisation, product, product, service service or or idea idea by by an an identified identified sponsor sponsor Paid: Paid: The The space space or or time time for for an an advertising advertising message message must must be be purchased purchased Non-personal: Non-personal: Involves Involves mass mass media media (e.g (e.g TV, TV, radio, radio, newspapers, newspapers, magazines) magazines) in in oneoneway way communications communications Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-4 The best job in the world The best job in the world campaign, but how much advertising did it use? Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-5 A new definition of advertising Traditional Traditional definition definition Advertising Advertising isis any any paid paid form form of of non-personal non-personal communication communication about about an an organisation, organisation, product, product, service service or or idea idea by by an an identified identified sponsor sponsor New, New, improved improved definition definition Advertising Advertising isis aa paid, paid, mediated mediated form form of of communication communication from from an an identifiable identifiable source, source, designed designed to to persuade persuade the the receiver receiver to to take take some some action, action, now now or or in in the the future future Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-6 Importance of advertising Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-7 Importance of advertising Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-8 Advertising has many functions Communicate Communicate && interact interact The The nature nature and and purpose purpose of of advertising advertising differs differs from from one one industry industry to to another another and and across across situations.  situations.  Engage Engage && involve involve Brand Brand awareness awareness Brand Brand equity equity Brand Brand image image Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-9 Brand awareness Building brand awareness is especially important for new products Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-10 Advertising today—NZ (cont.) 300 300 radio radio stations stations 150 150 newspapers newspapers 87 87 TV TV channels channels 6000 6000 magazines magazines 455 455 cinema cinema screens screens Population: 4.18 million  Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-25 Breakdown of advertising expenditure (Australia) Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-26 Media expenditure in New Zealand: 2007 Media Platform 2008 2009 ($million) ($million) Newspapers 760 623 Television 647 570 Radio 268 236 Magazines 249 217 Outdoor 74 68 Cinema Addressed mail 56 58 Unaddressed mail 64 65 Interactive 193 214 Source: New Zealand Advertising Standards Board Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-27 Importance Structure & Function Definition Future of Advertising History Advertising News Channels Empowered Consumers Changes in Ad Agencies Social Media Interactive Advertising Engagement Digital Media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-28 The changing advertising landscape  Consumer empowerment  Push-pull marketplace  Digital media and interactive advertising  Social media  New rules of engagement Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-29 Consumer empowerment and the push-pull marketplace • Insert figure 1.7 • Push pull marketplace Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-30 Digital media and interactive advertising Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-31 Interactive advertising Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-32 Social media Social media defined: Social media has been defined as ‘a group of internet­based  applications that build on the ideological and technological  foundations of Web 2.0, and that allow the creation and  exchange of user­generated content David Schumann, Andy Artis & Rachel Rivera, ‘The future of interactive advertising through an IMC lens’, Journal of Interactive Advertising, vol 1, no 2, 2001 Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-33 Social media Traditional view Contemporary view Consumersare are Consumers consumersof ofcontent content consumers Consumersare are Consumers producersof ofcontent content producers Brandsare areowned owned Brands bycompanies companies by Brandsare areaashared shared Brands creation creation Marketersdefine definebrand brand Marketers meaningsand andvalues values meanings Consumersdefine definebrand brand Consumers meaningsand andvalues values meanings Key opportunity: How to engage consumers by inviting them to create content around a product? Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-34 Social media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-35 New rules of engagement Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-36 Importance Structure & Function Definition Future of Advertising History Advertising News Channels Empowered Consumers Changes in Ad Agencies Social Media Interactive Advertising Engagement Digital Media Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-37 The future of advertising  Harsh economic environment leading to advertising budget cuts  Mass media advertising is dying  Rise of new communications technologies  Fragmentation of media and markets  Search for big ‘consumer insight’  From great executions to strong strategy Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-38 Summary and conclusions  Advertising in Australia and New Zealand has a long heritage with its roots dating back to the 1800s  Advertising has evolved from a push by marketers to reach audiences to a more complex and interactive approach  Consumer empowerment has led to an emphasis on shared dialog rather than pushed messages  Definitions of advertising have changed to accommodate new technologies and interactivity  The advertising industry has also adapted to current changes  Advertising continues to be the best way to reach large audiences Copyright 2012 McGraw-Hill Australia Pty Ltd PowerPoint Slides t/a Advertising and Promotion 2e by Belch, Belch, Kerr & Powell 1-39 ... range of of marketing, marketing, communication communication and and promotion promotion services services Producing Producing advertising advertising General General communications communications... non-personal communication communication communication about about about Advertising isis any any paid paid paidform form formof of ofnon-personal non-personal non-personal non-personal communication communication... explore the changing advertising environment To introduce marketing communication concepts —such as consumer empowerment and engagement, the push–pull marketplace and interactive advertising, digital