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Lecture Advertising and promotion (2/e) – Chapter 1: Where marketing communication began

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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,...

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Learning objectives

1 To define advertising—looking at its importance

and its function.

2 To trace the history of advertising in Australia and

New Zealand.

3 To explore the changing advertising environment.

4 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.

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Future of advertising

News channels

Definition

History

Empowered Consumers

Trang 4

What is advertising?

Traditional definition

Advertising is any paid form of non-personal communication about

an organisation, product, service or idea by an identified sponsor

Traditional definition

Advertising is any paid form of non-personal communication about

an organisation, product, service or idea by an identified sponsor

Traditional definition

Advertising is any paid form of non-personal communication about

an organisation, product, service or idea by an identified sponsor

Traditional definition

Advertising is any paid form of non-personal communication about

an organisation, product, service or idea by an identified sponsor

Paid: The space or time for

an advertising message must

be purchased.

Paid: The space or time for

an advertising message must

Advertising is any paid form of non-personal communication about

an organisation, product, service or idea by an identified sponsor

Traditional definition

Advertising is any paid form of non-personal communication about

an organisation, product, service or idea by an identified sponsor

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The best job in the world

The best job in the world campaign, but how much

advertising did it use?

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A new definition of advertising

New, improved definition

Advertising is a paid, mediated form of communication

from an identifiable source, designed to persuade the receiver to take some action, now or in the future.

New, improved definition

Advertising is a paid, mediated form of communication

from an identifiable source, designed to persuade the receiver to take some action, now or in the future.

Traditional definition

Advertising is any paid form of non-personal

communication about an organisation, product,

service or idea by an identified sponsor

Traditional definition

Advertising is any paid form of non-personal

communication about an organisation, product,

service or idea by an identified sponsor

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Importance of advertising

Trang 8

Importance of advertising

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Advertising has many functions

The nature and

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Brand awareness

Building brand awareness is especially important for

new products

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Brand image

Even established brands need to build and maintain

brand image.

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History of advertising

Trang 13

Function and structure

Advertising agency

Advertising agency

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Full range of marketing, communication and promotion services

General communications

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Great Australian ads

Trang 18

Future of advertising

News channels

Definition

History

Empowered consumers

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Advertising timeline (Australia)

1946

National industry association

(AANA)

1821

First magazine

1911

Media commissions introduced

1912

First industry association (Melbourne)

1923

Commercial radio

1956

Commercial TV

Trang 20

1st television broadcast

1821

First magazine

1927

Advertisers Association of NZ

1931

11 accredited agencies in operation

1989

Te Mangai Paho

(Maori Broadcasting) established

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Advertising today—Australia (cont.)

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Advertising today—NZ (cont.)

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Breakdown of advertising

expenditure (Australia)

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Media expenditure in New

Zealand: 2007

($million)

2009 ($million)

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Future of Advertising

News Channels

Definition

History

Empowered Consumers

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The changing advertising

Trang 30

Consumer empowerment and

the push-pull marketplace

• Insert figure 1.7

• Push pull marketplace

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Digital media and interactive

advertising

Trang 32

Interactive advertising

Trang 33

David Schumann, Andy Artis & Rachel Rivera, ‘The future

of interactive advertising through an IMC lens’, Journal of

Interactive Advertising, vol 1, no 2, 2001

Trang 34

Social media

inviting them to create content around a product?

Marketers define brand

meanings and values

Marketers define brand

meanings and values

Consumers define brand meanings and values

Consumers define brand meanings and values

Traditional view Contemporary view

Trang 35

Social media

Trang 36

New rules of engagement

Trang 37

Future of Advertising

News Channels

Definition

History

Empowered Consumers

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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

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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

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