ADVERTISING & PROMOTION

Types
Types of Advertising
• Brand advertising
– the most visible type of advertising, is referred to as national or
consumer advertising. Brand advertising, such as that for the
Apple Macintosh in the classic “1984” commercial, focuses on
the development of a long-term brand identity and image.
• Retail advertising or local advertising
– focuses on retailers, distributors, or dealers who sell their
merchandise in a certain geographical area; retail advertising
has information about products that are available in local
stores. The objectives focus on stimulating store traffic and
creating a distinctive image for the retailer. Local advertising
can refer to a retailer, such as T. J. Maxx; a service provider,
such as KFC; or a manufacturer or distributor who offers
products in a fairly restricted geographic area.
• Direct-response advertising
– tries to stimulate an immediate response by the customer to
the seller. It can use any advertising medium, particularly direct
mail and the Internet. The consumer can respond by telephone,
by mail, or over the Internet, and the product is delivered
directly to the consumer by mail or some other carrier.
• Business-to-business (B2B) advertising,
– also called trade advertising, is sent from one business to
another. It includes messages directed at companies
distributing products as well as industrial purchasers and
professionals, such as lawyers and physicians. Advertisers
place most business advertising in professional publications
that reach these audiences.
• Institutional advertising,
– also called corporate advertising, focuses on establishing a
corporate identity or winning the public over to the
organization’s point of view. Tobacco companies, for example,
run ads that focus on the positive things they are doing. The
ads for a pharmaceutical company showcasing leukemia
treatment also adopt that focus.
• Nonprofit advertising
– used by not-for-profit organizations, such as charities,
foundations, associations, hospitals, orchestras, museums, and
religious institutions, to reach customers (e.g., hospitals),
members (the Sierra Club), and volunteers (Red Cross). It is
also used to solicit donations and other forms of program
participation. The “truth”® campaign for the American Legacy
Foundation, which tries to reach teenagers with antismoking
messages, isan example of nonprofit advertising.
• Public service advertising
– provides messages on behalf of a good cause, such as
stopping drunk driving (as in ads from Mothers Against Drunk
Driving) or preventing child abuse.Also called public service
announcements, advertising and public relations professionals
usually create them pro bono (free of charge), and the media
donate the space and time.
IMPORTANT PROMOTIONAL TOOLS

• Providing information, particularly about some new

feature or a new product, is sometimes better handled
through publicity or public relations. Direct-response
advertising, such as catalogs and flyers sent to the home
or office, can also provide more information in more depth
than traditional ads that are limited in space and time.
Specialties that carry brand logos as reminders or
incentives to buy are handled by sales promotion
companies. Communication with employees and
shareholders about brands and campaigns is usually
handled by public relations.
• A variety of promotional tools can be used to identify,
inform, and persuade. Professionals see differences in all
of these areas, but many people just see them all as
promotion or lump them together and call them
advertising. The proper name for this bundle of tools,
however, is marketing communication (marcom), an
umbrella term that refers to the various types of
promotional tools and communication efforts about a
brand that appear in a variety of media.
WHAT ROLES DOES ADVERTISING PERFORM
• Advertising obviously plays a role in both communication
and marketing, as we’ve been discussing. In addition to
marketing communication, advertising also has a role in
the functioning of the economy and society.
• Marketing and Communication Roles
– In its marketing communication role, advertising provides
information about a product. It can also transform a product into
a distinctive brand by creating a brand image that goes
beyond straightforward information about product features.
• Economic and Societal Roles
– Advertising flourishes in societies that enjoy economic
abundance, in which supply exceeds demand. In these
societies, advertising extends beyond a primarily informational
role to create a demand for a particular brand.
– The more people know about a product, the higher the sales—
and the higher the level of sales, the less expensive the
product.
THE ADVERTISING WORLD
• The Organization
– Advertising begins with the organization behind the promotion
message, or the advertiser. The company sponsors
advertising and other promotional messages about its
business.
– Most advertisers have an executive or department that initiates
the advertising effort by identifying a marketing problem
advertising can solve.
– The marketing team, sometimes including the agency account
people, makes the final decisions about strategy, including the
target audience and the size of the advertising budget. The
client team approves the advertising or marketing
communication plan, which contains details outlining the
message and media strategies.
• The Agency
– The second player is the advertising agency (or other types of marketing
communication agencies) that creates, produces, and distributes the
messages. The working arrangement between advertiser and agency is
known as the agency–client partnership.
– An advertiser uses an outside agency because it believes the agency will
be more efficient in creating advertising messages than the advertiser
would be on its own. Successful agencies typically have strategic and
creative expertise, media knowledge, workforce talent, and the ability to
negotiate good deals for clients. The advertising professionals working for
the agency are experts in their areas of specialization and passionate
about their work
– Not all advertising professionals work in agencies. Large
advertisers, either companies or organizations, manage the
advertising process either by setting up an advertising
department (sometimes called marketing services) that
oversees the work of agencies or by setting up their own in-
house agency. Tasks performed by the company’s marketing
services department include the following: set the budget and
select the agencies; coordinate activities with vendors, such as
media, production, and photography; make sure the work gets
done as scheduled; and determine whether the work has
achieved prescribed objectives.
• The Media
– The third player in the advertising world is the media, the systems
used to deliver messages and engage audiences. The emergence
of mass media has been a central factor in the development of
advertising because mass media offers a way to reach a widespread
audience.
– In traditional advertising, the term media refers to all of the channels
of communication that carry the message from the advertiser to the
audience and from consumers back to companies. We refer to these
media as channels because they deliver messages, but they are
also companies,such as your local newspaper or radio station
– Media is plural when it refers to various channels, but singular
—medium—when it refers to only one form, such as
newspapers.
– Each medium (newspaper, radio or television station, billboard
company, and so on) has a department that is responsible for
selling ad space or time. These departments specialize in
assisting advertisers in comparing the effectiveness of various
media as they try to select the best mix of media to use. Many
media organizations will assist advertisers in the design and
production of advertisements. That’s particularly true for local
advertisers using local media, such as a retailer preparing an
advertisement for the local newspaper.
– The primary advantage of advertising’s use of mass media is
that the costs to buy time in broadcast media, space in print
media, and time and space in digital media are spread over the
tremendous number of people that these media reach.
• Professional Suppliers and Consultants
– The fourth player in the world of advertising include artists,
writers, photographers, directors, producers, printers, and self-
employed freelancers and consultants.
– This array of suppliers mirrors the variety of tasks required to
put together an ad. Other examples include freelance
copywriters and graphic artists, songwriters, printers, market
researchers, direct-mail production houses, telemarketers,and
public relations consultants.