Fundamentals of advertising

OLYMPIA BUSINESS SCHOOL
FILO-TEXT
Fundamentals of Advertising
RAFFLES EDUCATION GROUP
Kuala Lumpur w Petaling Jaya w Penang w Singapore w Jakarta w TABLE OF CONTENTS
TABLE OF CONTENTS . 2
HOW TO USE THE FILO-TEXT? . 3
ASSESSMENT . 4
INDIVIDUAL ASSIGNMENT . 4MID-TERM EXAMINATION. 4TEAM PROJECT. 4FINAL EXAMINATION. 5 ATTENDANCE. 5
CONTACT-TIME. 6
THE ACADEMIC TEAM . 7
THE ACADEMIC PLANNER. 8
INTRODUCTION. 9
THE SUBJECT FUNDAMENTAL OF ADVERTISING. 9 TOPIC 1 . 10
TOPIC 2 . 13
TOPIC 3 . 15
TOPIC 4 . 17
TOPIC 5 . 19
TOPIC 6 . 21
TOPIC 7 . 23
TOPIC 8 . 25
TOPIC 9 . 26
TOPIC 10 . 28
TOPIC 11 . 30
TOPIC 12 . 32
HOW TO USE THE F ILO-TE X T ?
The Filo-text is a tool to assist you in your study at Olympia Business School. It provides general information on the course structure and also details on the syllabus that you will becovering throughout your course.
The general information, provided at the beginning of this document, includes • Assessment• Attendance• Fees• Contact time• The academic team• The academic planner To assist you in your classes and revision, this filo-text also provides information on the topics you will be covering in each of the classes you will be attending. This informationincludes the following: • The topic• The objective(s) of the lecture• The textbook, the chapter(s) and page(s) related to the given topic• Other reference books available on the topic• Additional reference material for your own research• The objective(s) of the tutorial• Questions to prepare for discussion during the tutorial• Questions for your personal research and self-assessment Use the Filo-text to prepare yourself prior to the lecture, between the lecture and the ASSESSMENT
Student assessment will be evaluated based on the following: INDIVIDUAL ASSIGNMENT
An individual assignment will be given to the student on the first week and will have to be returned no later than on the 8th week. The marked assignment will be returned to thestudent no later than on week 10.
The assignment will be related to the topics covered between week 1 and week 6 inclusive. It will comprise a written report of approximately 500 words.
Should the student fail to submit his/her assignment on week 8, the result will MID-TERM EXAMINATION
A mid-term examination will be conducted during the lecture session of week 10. It will assess the students’ knowledge and understanding of the topics covered up to week 8.
The results, together with the answer scripts, will be returned to the students no later than Should a student be absent without a valid apology, the result will automatically be zero.
TEAM PROJECT
A team project will be assigned to students during the first week. The team will comprise The report of the team project will have to be submitted to the subject lecturer by no later than week 12 and will be presented on week 13. Late submission won’t be entertained andwill automatically result in no marks being awarded.
FINAL EXAMINATION
The final examination will be conducted two weeks after you have completed your syllabus. The examination will take 3 hours.
Registration for the examination is open from week 5 and closes on week 8. Make sure
you register on time. No late registration will be entertained.
The format of the examination is as follows: • Total
ATTENDANCE
Attendance for both the lectures and the tutorials is compulsory. Any student not attending a class should provide a medical certificate or a written justification (signed by aparent or guardian in the case of a full-time student). Should a student fail to do so, he / shewill be considered truant.
If a student’s attendance for a given subject is lower then 70%, he / she will not be allowed to sit for the final examination.
Punctuality is equally important. The lecturer is entitled to refuse entry into the classroom to any student coming late for classes.
The registration fee is to be paid upon registration.
The course fee is paid either in full, per semester or by instalments. For payments made in full, the payment is due before the first lecture. For payments made by semester, thepayment per semester is due on the first day of the semester. For monthly instalments, thefirst payment is due on the first day of class while subsequent payments are due on the firstday of each subsequent month.
Should any student have difficulty to pay his / her fees on time, he / she must meet with the (Deputy) Principal to arrange an alternative. Any student who has not settled his / herfees and has not met with the (Deputy) Principal will not be allowed to attend classes or sitfor an examination.
CONTACT-TIME
FULL-TIME
Classes are conducted over a period of 12 weeks. Contact time consists of 1 1/2 hours of lecture and 1 1/2 hours of tutorial per week.
PART-TIME
Classes are conducted over a period of 12 weeks. Contact time consists of 1 ½ hours of For each hour of contact, the student is expected to spend at least 2 hours of unsupervised work, either individually or in groups.
T HE ACADEMIC T EAM
At the beginning of the first lecture, please fill-in the following: Starting
Finishing
Tutorial
THE ACADEMIC PLANNER
This is an outline of the topics you will cover for this subject. Please ensure you fill-in the dates of the respective lectures during the first lecture.
Lecture Topic
Environmental Influences On Consumer Behavior Final Examination
INTRODUCTION
THE SUBJECT
FUNDAMENTAL OF ADVERTISING
This subject is designed to introduce the student to field of advertising and promotion by taking an integrated marketing communications (IMC) perspective.
Many companies are approaching advertising and promotion from an integrated marketingcommunications perspective, which involves coordinating the various promotional elementsalong with others marketing activities that communicate with a firms customer.
This subjects attempts to present a balance of theoretical and practical perspective and tointegrate the two. It draws heavily from the extensive research and theorizing in advertisingconsumer behavior , communications , marketing, sales promotion and other areas to providethe student with understanding the marketing communication process.
Lecture Subject:
THE ROLE OF ADVERTISING AND PROMOTION
Lecture Objectives:
On completion of this lecture, the student will be able to: • Understand the marketing and promotion process• Develop the marketing strategy and plan• Identify the classifications of advertising• And analyze the environmental influences on advertising and promotion Textbook:
Chapter(s)
“Introduction to Advertising and Promotion”, Belch & Additional Reference Material:
1) Advertising – Principles and practice (Wells, Burnett, Moriarty) 3) Promotional Management and Marketing Communication (Shimp) Tutorial Subject:
THE ROLE OF ADVERTISING AND PROMOTION
Questions to prepare for discussion during the tutorial:
1) In 1990 pepsi-cola test marketed a new product called “pepsi A.M.” which was a cola drink with more caffeine and lower carbonation that was positioned as morningbeverage. Discuss the competitive factors that might have been considered in deciding tointroduce this product. Do you think a soft drink cola product can be marketedsuccessfully as an alternative to coffee ? Why or why not 2) Discuss the relationship of pricing strategy to advertising. What are some of the price related factors that must be considered in developing the promotional program.
3) Assume that you are the advertising manager for a new hot cereal product. Perform a competitive analysis for your brand giving attention to the various forms of competition.
Questions available for self-assessment:
1) Discuss the way various aspects of product planning and strategy relate to advertising 2) Describe the various classification of advertising.
3) Discuss the differences between a promotional push and a promotional pull strategy.
What factors influence a firm’s decision to use either a push or pull strategy.
4) What are the differences between primary and selective demand advertising.
5) Discuss the role of advertising in business to business firms who sell directly to other 6) Explain the national advertising.
7) What is direct response advertising.
8) How is industrial advertising different from professional advertising.
9) Marketers have increased their efforts to reach ethnic marketers. Explain why this may Lecture Subject:
PERSPECTIVE OF CONSUMER BEHAVIOUR
Lecture Objectives:
On completion of this lecture, the student will be able to: • The consumer decision making process• The consumer learning process• The environmental influences on consumer behavior Textbook:
Chapter(s)
“Introduction to Advertising and Promotion”, Belch & 112 to 153
Additional Reference Material:
1) Advertising – Principles and practice (Wells, Burnett, Moriarty) 3) Promotional Management and Marketing Communication (Shimp) Tutorial Subject:
PERSPECTIVE OF CONSUMER BEHAVIOUR
Questions to prepare for discussion during the tutorial:
1) Analyze the purchase of a cereal from a family decision making perspective. Discuss the role various family members would play in decision making process.
2) Use the basic model of consumer decision making to analyze the purchase process a consumer would go through in purchasing a laundry detergent versus a new computer.
3) Discuss the role of advertising and other forms of promotion would play at each stage of 4) Discuss the various sources of problem recognition . discuss how marketers can influence problem recognition. Find an examples of an advertisement that is designed tocreate or appeal to problem recognition.
Questions available for self-assessment:
1) Marketing has often been criticized for appealing to consumer wants rather than needs.
Do you feel it is ethical for marketers to encourage consumer to purchase products andservices on the basis of wants rather than needs. Defend your position.
2) What are the five levels of needs recognized in maslow’s hierarchy ? Discuss the implication of the hierarchy of needs of advertising.
3) Describe the five different environmental influences on consumer behavior.
4) Discuss the various attitude change strategies recognized by the multiattribute attitude 5) Discuss how promotional managers can use the principle of various behavioral learning theories such as classical and operant conditioning in the design of advertising andpromotional strategies.
6) What are the problems does the selective perception process create for advertisers.
7) Discuss the three variation of consumer decision making process.
Lecture Subject:
THE COMMUNCATION PROCESS
Lecture Objectives:
On completion of this lecture, the student will be able to: • The nature of communication• The different models in the communication process• Analysis of the receiver• The response process in communication• The involvement in the communication process Textbook:
Chapter(s)
“Introduction to Advertising and Promotion”, Belch & 186 to 218
Additional Reference Material:
1) Advertising – Principles and practice (Wells, Burnett, Moriarty) 3) Promotional Management and Marketing Communication (Shimp) Tutorial Subject:
THE COMMUNICATION PROCESS
Questions to prepare for discussion during the tutorial:
1) What is necessary for effective communication to occur ? Discuss some of the barriers to effective communication in advertising.
2) What is meant by noise in the communication process ? What can be done to reduce 3) Discuss how the advertising and promotional implications differ for companies selling high – versus low involvement products.
4) Explain how the various response models discussed in this chapter would be useful in • For a company introducing a new innovation such as compact disc player • For the marketers of a consumer product such as paper towels.
Questions available for self-assessment:
1) Analyze the decision by advertisers such as Nike to portray star athletes as anti heroes 2) Compare the central and peripheral routes to persuasion.
4) Discuss how the encoding process differs for radio versus television commercials.
5) Why are personal channels of communication often more effective than nonpersonal 6) Discuss how communicator can be both the sender and the receiver 7) Describe the characteristics of a communication source that would appeal to 8) What is the result of interference in human communication ? List some ways to reduce 9) Contrast the relative advantages and disadvantages of verbal vs non verbal 10) What is persuasive communication.
Lecture Subject:
SOURCE, MESSAGE AND CHANNEL FACTORS
Lecture Objectives:
On completion of this lecture, the student will be able to: • Identify direct and the indirect source factor in advertisement.
• Discuss importance of the message factors.
• Illustrate the role of channel for the advertisement.
Textbook:
Chapter(s)
“Introduction to Advertising and Promotion”, Belch & 220 to 252
Additional Reference Material:
1) Advertising – Principles and practice (Wells, Burnett, Moriarty) 3) Promotional Management and Marketing Communication (Shimp) Tutorial Subject:
SOURCE, MESSAGE AND CHANNEL FACTORS
Questions to prepare for discussion during the tutorial:
1) Source can be considered attractive in terms of similarity, familiarity and linking. Give 2) Define word of mouth sources of communication. Why is this source important in 3) Collect ads from magazine to locate examples of the following : high source credibility, high source attractiveness , non verbal appeal , fear appeal. Explain thecriteria you used in each case.
Questions available for self-assessment:
1) Discuss the various components of source attractiveness.
2) What is meant by advertising clutter ? What can advertiser do to deal with the clutter 3) Discuss the pros and cons of using a two sided versus one sided advertising message.
Why do marketers rarely use two sided advertising messages.
4) Choose three celebrities currently being used as advertising spokesperson and analyze 5) What are the differences between the source credibility components of expertise and 6) Most marketers choose message sources with high credibility . Discuss some reasons why it may be necessary or detrimental to use a source who is high in credibility.
7) Discuss the pros and cons of using the following types of messages structure or appeals? i) Message that do or do not draw specific conclusion Lecture Subject:
DETERMINING ADVERTISING & PROMOTION
OBJECTIVES
Lecture Objectives:
On completion of this lecture, the student will be able to: • Evaluate the value of objectives• Determine and evaluate promotional objectives• Understand sales versus dales versus communication objectives.
• Use the DAGMAR approach whenever possible• Comprehend the problems in setting advertising objectives Textbook:
Chapter(s)
“Introduction to Advertising and Promotion”, Belch & 258 to 287
Additional Reference Material:
1) Advertising – Principles and practice (Wells, Burnett, Moriarty) 3) Promotional Management and Marketing Communication (Shimp) Tutorial Subject:
DETERMINING ADVERTISING & PROMOTION
OBJECTIVES
Questions to prepare for discussion during the tutorial:
1) You are the advertising manager for an established brand of laundry detergent and have just fought hard to have the promotional budget for the brand increased by 10 %. Youhave just received a report for the latest quarter that shows sales did not change despitethe increase in advertising spending. The marketing vice president is concerned aboutthe lack of increase in sales and wants you to explain the problem ? How might yourespond.
2) One of the more controversial areas of marketing and promotion is whether sales are the most appropriate criteria for measuring advertising effectiveness or whethercommunication objectives should be used. Discuss the use of sales versuscommunication objectives, giving attention to the problem and advantages of each.
Questions available for self-assessment:
1) A criticism of DAGMAR is that it limits advertising creativity by imposing too much influence and structure on the creative specialist. Do you agree or disagree.
2) Discuss the value of setting objectives for the integrated marketing communications 3) What are the difference between marketing objectives and communication objectives.
4) What is meant by carry over effect.
5) Discuss three situations where sales are an appropriate measures of the effects of advertising or some other marketing communication element.
6) What are the four characteristics of good objectives suggested by DAGMAR.
7) What is the difference between outside in planning for IMC versus inside out planning ? 8) What is meant by zero based communication planning for IMC ? 9) What is the procedure for developing a pay out plan for new products ? 10) What are the problems with sales objectives ? Lecture Subject:
ADVETISNIG BUDGET
Lecture Objectives:
On completion of this lecture, the student will be able to: • Illustrate a framework for an advertising budget• Identify the different types of budgeting approaches• Allocate the necessary resources for an advertising budget Textbook:
Chapter(s)
“Introduction to Advertising and Promotion”, Belch & 290 to 315
Additional Reference Material:
1) Advertising – Principles and practice (Wells, Burnett, Moriarty) 3) Promotional Management and Marketing Communication (Shimp) Tutorial Subject:
ADVERTISING BUDGET
Questions to prepare for discussion during the tutorial:
1) Discuss the marginal analysis approach to budget setting. What are some of the weakness that limit its application.
2) What are some factors that have been increasing in importance in the budget setting process ? Discuss their reasons for taking this positions.
3) In percentage of sales approach to budget setting a large difference may exist between percentages set by different companies. Give examples of companies setting a lowfigure; a high figure. Why are these figures so different.
Questions available for self-assessment:
1) What factors may influence the budget allocation decision ? Give example of each of 2) Some advertisers believe that there are economics of scale that are accrued in the advertising process. Discuss their reasons for taking this positions.
3) Describe the five steps involved in the objectives and method of budget setting.
4) Discuss the major strength of the percentage of sales budgeting method.
5) Compare the S shape response curve and the concave and the concave downward sales 6) Explain the differences between top down and bottom up approaches to budget setting.
Which is likely to be most effective.
7) Explain the difference between investing in advertising and spending.
8) What is the importance of budget setting in marketing.
Lecture Subject:
CREATIVE STRATEGY
Lecture Objectives:
On completion of this lecture, the student will be able to: • Discuss the importance of creativity in advertising.
• Prepare a creative strategy plan.
• Explain the process of creativity• Formulate the creative strategy development.
Textbook:
Chapter(s)
“Introduction to Advertising and Promotion”, Belch & 318 to 342
Additional Reference Material:
1) Advertising – Principles and practice (Wells, Burnett, Moriarty) 3) Promotional Management and Marketing Communication (Shimp) Tutorial Subject:
CREATIVE STRATEGY
Questions to prepare for discussion during the tutorial:
1) Discuss the meaning of advertising creativity. Choose a print advertisement and a television or radio commercial you like and analyze them in terms of creativity.
2) What are the various stages of the creativity process ? Do you agree with the notion that advertising creativity can should follow a definite process ? 3) What is meant by a major selling or “Big Idea “ ? What are the some of the approaches to developing major selling ideas ? Provide some examples of each.
Questions available for self-assessment:
1) Discuss the role positioning as a basis for advertising strategy. Find examples of two ads that use position as the basis for their creative approach 2) How should advertising be judge and who should be responsible for judging it clients or 3) What is your opinion of advertising awards, such as the Cannes Lions, that are based solely on creativity ? Should agency pride themselves on their creative awards ? Why orwhy not ? 4) What is meant by a media driven creative strategy ? What are the advantages of taking this approach to creative strategy development ? 5) Assume that you have been assigned to work on the development of an advertising campaign for a new brand cereal. Discuss the various types of general and productspecific preplanning input you might provide for the creative team.
6) Find an example of an ads campaign theme that has been around for a very long time.
Why do you think the advertiser has been able to use this theme for so long.
7) What is meant by a Unique Selling Proposition (UPS) ? Find as example of an ads your feels uses a unique selling proposition as its major selling idea. Evaluate this ad againstthe three characteristics of UPS’s discussed in this chapter.
8) Discuss the role brand image plays in the advertising of a particular product/service category such as soft drinks, colonge or airlines. Discuss the image used by variouscompanies competing in this market.
MID TERM EXAMINATION
Lecture Subject:
MEDIA PLANNING
Lecture Objectives:
On completion of this lecture, the student will be able to: • Identify the basics of media planning• Develop a media plan• Evaluate market analysis and identify target market identification• Establish the media objectives• Create a process on feedback , follow-up and provide corrective action, if Textbook:
Chapter(s)
“Introduction to Advertising and Promotion”, Belch & 386 to 416
Additional Reference Material:
1) Advertising – Principles and practice (Wells, Burnett, Moriarty) 3) Promotional Management and Marketing Communication (Shimp) Tutorial Subject:
MEDIA PLANNING
Questions to prepare for discussion during the tutorial:
1) Discuss some of the problems inherent in the media planning process. Give an example 2) Describe each step involved in developing media plan. Discuss some of the decisions 3) In the text it was stated that marketers usually find it advantageous to use a media mix.
Describe what this means and give examples of companies currently this strategy.
4) It has been said there is an inverse relationship between reach and frequency . Discuss the meaning of this and give examples of when each should be the primary objectives.
Questions available for self-assessment:
1) Discuss the three methods of media scheduling. When should each be used ? What types 2) Describe some of the bases used for determining relative media costs. Discuss some of the problems inherent n using to make cross-media comparisons.
3) Discuss the meaning of reach. How reach is measured? What is meant by effective 4) What are sweep periods ? Why might ratings collected during sweeps periods reflect 5) What is a brand development index ? A category development index ? How can 6) What level of frequency is necessary to achieve an impact on the receiver ? 7) What is meant by readers per copy ? How is this figure derived ? What are some of the problems associated with this number.
8) The text states that flexibility is required in a media plan due to changes that may take place in the marketing environment. Describe some of these changes and how theymight affect the media plan.
Lecture Subject:
EVALUATION OF BROADCAST MEDIA
Lecture Objectives:
On completion of this lecture, the student will be able to: • Identify advantages and limitation of television• Identify and discuss the procedures is buy the television time• Measures the television audience• Explain the advantages and limitation of radio• Identify & discuss the procedure to buy the radio time Textbook:
Chapter(s)
“Introduction to Advertising and Promotion”, Belch & 428 to 471
Additional Reference Material:
1) Advertising – Principles and practice (Wells, Burnett, Moriarty) 3) Promotional Management and Marketing Communication (Shimp) Tutorial Subject:
EVALUATION OF BROADCAST MEDIA
Questions to prepare for discussion during the tutorial:
1) Discuss the various ways developments in the information superhighway will affect TV as an advertising medium? What are some things advertisers might do to adapt to thesechanges ? 2) Television is often described as a mass medium that offers little selectivity to advertise.
Do you agree with this statement ?What are some ways selectivity can be achievedthrough TV advertising.
3) Discuss the specific advantages and disadvantages of television as an advertising Questions available for self-assessment:
1) Explain what is meant by zipping and how they affect television advertising. Discuss some ways advertisers can deal with the zapping problem.
2) Choose a particular television daypart other than prime time and analyze the products or services being advertised during this periods ? Why do you think these firms havechosen to advertise during this daypart.
3) Discuss the impact of the growth of cable TV on advertising. How are developments on cable TV likely to affect advertising over the next 5 to 10 years.
4) Discuss the methods used to ensure network television viewing audiences and local audiences. Do you feel that the measurement methods being used for each are yieldingvalid estimates of program audiences ? Why or why not ? 5) What are the advantages and limitations of advertising on radio ? Why types of advertisers are most likely to use radio.
6) Discuss how the concept of image transfer can be used in radio advertising . Provide an examples of a radio campaign that is using this concept and evaluate it.
7) Why you think the talk radio format has becomes popular in recent years ? What are its 8) What are the advantages and limitations of advertising on cable television networks or stations or a syndicated programs ? Choose a cable station and a syndicated and evaluatethe types of products and services advertising during these shows.
9) Discuss the future of television and radio as advertising media. What are some of the 10) Discuss how the changes that have been occurring in the television industry over the past two decades have affected the use of TV as an advertising medium.
Lecture Subject:
EVALUATION OF PRINT MEDIA
Lecture Objectives:
On completion of this lecture, the student will be able to: • To the role of magazine and newspaper in advertising• To magazine and classification of magazine• To newspaper and types of newspaper• To the advantages of newspaper Textbook:
Chapter(s)
“Introduction to Advertising and Promotion”, Belch & 474 to 515
Additional Reference Material:
1) Advertising – Principles and practice (Wells, Burnett, Moriarty) 3) Promotional Management and Marketing Communication (Shimp) Tutorial Subject:
EVALUATION OF PRINT MEDIA
Questions to prepare for discussion during the tutorial:
1) Discuss how the role of magazines and newspaper as advertising media differs from 2) How can advertisers achieve grater selectivity in their use on magazine and newspapers 3) Explain why advertisers of a product such as cosmetics or women’s clothing would choose to advertise in a publication such as Vogue, which devotes most its pages to adsrather than editorial.
4) Discuss some of the reason why companies such as Ray-Ban , Sony, and Federal Express choose to publish their own magazines “ phony publishing” ? Questions available for self-assessment:
1) If you were buying magazine advertising space for a manufacturer of skiing equipment , what factors would you consider ? Would your magazine selections be limited to skiingpublishing ? Why or why not ? 2) Do you agree with the policy of most newspapers whereby national advertisers are charged a higher rate than local advertisers? Do you think this policy limits the amountof advertising newspapers can generate from national advertisers? How mightnewspapers attracts more business from national advertisers? 3) Discuss how the problem of declining readership is affecting the value of newspapers as an advertising medium. How can newspapers deal with this problem? 4) Discuss the future problems and challenges both newspapers and magazines will face emerging such as direct mail and interactive television.
5) Discuss how advertises deals with the clutter problem in both magazines and 6) Under what circumstances would spot television advertising be more appealing than 7) What are the specific advantages and limitations of newspapers and magazines as Lecture Subject:
SUPPORT MEDIA
Lecture Objectives:
On completion of this lecture, the student will be able to: • The scope of support media• The out of home media and transit advertising• The speciality advertisement• Promotional products marketing• The yellow pages advertising.
Textbook:
Chapter(s)
“Introduction to Advertising and Promotion”, Belch & 520 to 543
Additional Reference Material:
1) Advertising – Principles and practice (Wells, Burnett, Moriarty) 3) Promotional Management and Marketing Communication (Shimp) Tutorial Subject:
SUPPORT MEDIA
Questions to prepare for discussion during the tutorial:
1) Discuss some the advantages and disadvantages associated with specialty advertising.
2) Describe some of the various sources available for audience measurement for out of 3) What are some of the reasons in store may be effective in increasing sales? 4) Discuss some advantages and disadvantages associated with Yellow Pages advertising.
5) Discuss some of the advantages and disadvantages of outdoor advertising? Give examples product that might best benefit from each of the media.
6) Give some examples of the new out-of-home media. Why have these become so 7) Discuss the advantages and disadvantages associated with transit advertising.

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