M: ADVERTISING
2024 EVERGREEN RELEASE
CHAPTER NO. 01: WHAT IS ADVERTISING?
The main objectives in this chapter are to define integrated marketing communications (IMC)
and advertising and to distinguish advertising from other forms of marketing communications.
Students will also learn about the functions and effects of advertising in free economies and
study the history of advertising in the United States. Finally, students will begin to develop an
appreciation of some of the ways advertising has influenced our society.
Learning Objectives
LO 01-01 Define integrated marketing communications and explain its importance.
LO 01-02 Clarify how advertising differs from other forms of marketing communications.
LO 01-03 Explain the role advertising plays in business and marketing.
LO 01-04 Illustrate the functions of advertising in a free-market economy.
LO 01-05 Discuss how advertising evolved with the history of commerce.
LO 01-06 Describe the impact of advertising on society.
LECTURE OUTLINE
I. Vignette: Wendy’s
This gives an introduction to the world of advertising. It includes an example of an
integrated marketing campaign from Wendy’s using Twitter and Fortnite.
My Ad Campaign 1-A: Overview
Welcome to My Ad Campaign, a valuable feature of this text. My Ad Campaign should be
useful in any of the following situations:
• Your instructor has asked students in your class to work on part or all of an ad campaign,
either individually or in groups.
• You are doing an internship and want practical advice on how to help your internship
sponsor.
• You want to try to apply the concepts and ideas that you are reading about in this book to
the real world.
Instructors approach advertising projects differently. No matter which approach your
instructor takes, the good news is that developing an advertising campaign follows a similar
path. The My Ad Campaign feature is designed to help guide you through the process.
, Let’s begin with a definition. An ad campaign involves the creation and placement of a series
of strategic communications that are unified by an underlying theme or core message.
The My Ad Campaign topics are listed below. You may find it useful or necessary to jump
around as you develop your own campaign.
1. Overview/Tools for Teamwork
2. Your Campaign Assignment
3. Understanding What Your Client Wants
4. Segmenting the Audience
5. Understanding Your Customer and Product
6. Conducting Marketing and Advertising Research
7. Situation Analysis, Objectives, and Budgets
8. The Creative Brief
9. Developing the Creative Product
10. Magazine and Newspaper Advertising
11. Television and Radio Advertising
12. Digital Interactive Media
13. Out-of-Home, Direct Mail, and Specialty Advertising
14. Developing Media Objectives and Strategies
15. Developing a Plans Book
16. Blogging/The Client Presentation
II. What Is Advertising?
Many people simply refer to all commercial messages as “advertising,” but in fact, these
various tools are collectively called marketing communications. Advertising is just one
of these tools.
Advertising is defined as:
1. Structured and composed.
2. Nonpersonal, or mass, communication of information.
3. Usually paid for.
4. Delivered through various media.
5. Usually persuasive to get the audience to do something and often promotes
products.
6. By identified sponsors.
Advertising includes six core components:
1. Advertising is a structured form of communication that uses verbal and
nonverbal elements to fill predetermined space and time formats that are
controlled by the sponsor.
, 2. Advertising is nonpersonal communication of information because it is directed at
groups rather than individuals. These people could be consumers, who buy
products for their personal use, or businesspeople, who buy products for their
businesses.
3. Advertising is usually paid for by sponsors who are identified in the ad. An
exception is some charitable sponsors whose public service announcements
(PSAs) are carried at no charge.
4. Advertising is mediated, meaning between a source and a receiver there is a
channel of communication referred to as a medium, such as radio advertising,
television advertising, Instagram ads, Google ads, and so on. Personal
communication about products or word-of-mouth (WOM) advertising is a
communication medium, but it has not generally been considered an advertising
medium until recently. The popularity of social media is forcing advertisers to
reconsider this belief. Historically, advertisers have used mass media (the plural
of medium), such as radio, TV, newspapers, magazines, and out-of-home media
such as billboards. Other types of media include:
a. Addressable media (direct mail)
b. Interactive media (Snapchat)
c. Nontraditional media (specialty advertising, event sponsorship, or direct mail)
5. Advertising is usually persuasive in nature—it is designed to change a belief or
attitude, usually to motivate people to do something. Advertising promotes
tangible goods (e.g., oranges, iPads, and olive oil), publicizes intangible services
(e.g., bankers, beauticians, bike repair shops), and advocates a wide variety of
ideas (concepts based on economics, politics, etc.). In this book, the term product
encompasses goods, services, and ideas.
6. Advertising identifies its sponsors (whereas public-relations activities often
refrain from open sponsorship).
Check Yourself 1-1
1. What are the six key components of the definition of advertising?
Advertising is:
• a type of communication
• typically directed at groups of people rather than individuals
• paid for by sponsors
• carried to audiences via a medium
• intended to be persuasive in promoting a product
• associated with an identified sponsor
2. Which of these components do product placements not fulfill?
Product placements are often made to look natural and unobtrusive so the sponsorship
is not identified, leaving audiences unsure that they are seeing a promotion.
, CONNECT EXERCISE: Advertising Today: Wendy’s Advertising Evolution
Activity Summary: This activity is designed to aid students in differentiating between
advertising and integrated marketing communications (IMC). In the exercise, students watch
three videos of different promotions for Wendy’s. One is an advertisement from their 1980s,
classic “Where’s the Beef?” campaign. The other two videos show Wendy’s more recent
promotions, which reflect their IMC approach. This is followed by multiple-choice questions
regarding how and why Wendy’s advertising changed.
Type: Video Case
Learning Objectives:
01-01 Define integrated marketing communications and explain its importance.
01-02 Clarify how advertising differs from other forms of marketing communications.
Difficulty Level: 1 Easy; 2 Medium
Blooms: Remember; Apply
AACSB: Knowledge Application; Reflective Thinking; Analytical Thinking
Follow-Up Activity: Instructors could ask students to find examples of brands that have evolved
from a focus strictly on advertising to an IMC approach and to provide examples of these brands’
IMC efforts.
III. The Role of Advertising in Business
A. Business organizations are typically classified under three broad categories:
1. Operations (R&D, production/manufacturing)
2. Finance/administration
3. Marketing
Marketing is the only one whose primary role is designed to attract revenue.
B. What Is Marketing?
1. Marketing is:
a. the activity, set of institutions, and processes.
b. for creating, communicating, delivering, and exchanging offerings.
c. that has value for customers, clients, partners, and society at large.
2. Marketing is a process, a sequence of activities, aimed at profitably satisfying
consumer needs.
3. The process is typically broken down into the 4P’s of the marketing mix:
developing products, pricing them strategically, distributing them to customers at
appropriate places, and promoting them through sales and advertising activities.
C. Advertising and the Marketing Process