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Explore the evolution of advertising from Greek merchants to digital marketing. Discover the impact of mediums like magazines and newspapers. Learn about marketing warfare strategies used by companies and the economic effects of advertising.
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Definition The non-personal communication of information, usually paid for and usually persuasive in nature, about products (goods and services) or ideas by identified sponsors through various media. Advertising is usually aimed at a particular segment of population – the target audience.
By Target Audience • Consumer advertising (Seen to us as a buyer) • Business advertising (behind scenes transactions to get to consumer) • Industrial – mining i.e.: drill company advertises in • Trade - plumbing • Professional - financial • Agriculture – farming needs
By Geographical Area • International advertising • National advertising • Regional advertising • Local (retail) advertising
By Medium • Print advertising • Newspaper • Magazine • Broadcast advertising • Radio • Television • Out-of-home • Outdoor (billboards) • Transit • Direct mail • Mail-outs • Computer-based • Internet/pop-ups • Text messages ADVERTISE HERE
By Purpose • Product (Kellogg Cereal) • Non Product (Attorney at Law) • Commercial (Boeing/Airplanes) • Action (Walk for Breast Caner) • Awareness (TRUTH ads) • Advertising may also be classified according to its purpose
Advertising’s Evolution • Introduced by Greek and Roman merchants who benefited from expanded contact with other societies • Impact of printing – introduction of printing press in Germany in 1450s by Johannes Gutenberg allowed mass production of advertising
Evolution Cont. • Industrial Revolution allowed mass production of goods which created a need for mass consumption. • Advertising let people know of goods and services they could have
Evolution Cont. • Magazines • First real advertising medium • First Magazine – The Southern Messanger • First Advertising Agent in U.S. – Volney B. Palmer • Newspapers- • Although they were produced before magazines, they were not originally as widely used for advertising. Today, newspapers have a high volume of advertising, but Internet is growing. Newspaper readers are declining and moving to Internet.
Evolution Cont. • Photography • Introduced in 1839 and replaced illustrations • Telegraph • Introduced in 1844 – enabled ads and news to travel over great distances • Direct Mail • 1896 – catalogues could be sent directly to consumers • Radio • 1920
Evolution Cont. • Television • 1941 – color in 1955 • The second largest advertising medium • The Internet • 1990s
Marketing Warfare • Strategic positions companies use in the marketplace • Defensive Strategy –The dominant company must defend itself against competitors aiming to knock it off the top of the mountain. • Offensive – The second and third place companies try to capture portions of the top company’s market • Flanking – Middle companies point out what makes them different • Guerilla – Try to find niches they can dominate
Economic Impact of Advertising • Perceptual value of products • Prices • Competition • Consumer Demand • Consumer Choice • Business Cycle • i.e. Coffee (Starbucks vs. McDonalds)