Advertising and how to create a successful advertisement

110 ClIl MINI-I CrJY UNIVERSITI

OF FOREIG;~ LANGUAGES - INFORMATION TECHNOLOGY

SCHOOL OF FOREIGN LANGUAGES

GRADUL\'l'ION PAPER

ADVERTISING AND HOW TO CREATE
A SUCCESSFUL ADVERTISEMENT

Advisor: NGUYEN THI QUYNH, MSBA
Student: VO THI PHUONG MAl - Class: KA9602

TV Oqi Hqc Huflit

1111111111111111111111111111

101000420

HCMC, July 2000.

.1

I


110 CHI MINH CITY UNIVERSITI

OF FOREIGN LANGUAGES - INFORMATION TECHNOLOGY

SCHOOL OF FOREIGN LANGUAGES

CQADUL\'rION PAPEQ

ADVERTISING AND HOW TO CREATE
A SUCCESSFUL ADVERTISEMENT

Advisor: NGUYEN Till QUYNH. MSBA
Student: VO Till PHUONG MAl - Class: KA9602

\

,

HCMC, July 2000.


Acknowledgements

In completing this graduation paper, I has received valuable encouragement,
advice and help from our teachers, experts, and friends. First at all, I would like to
thank my advisor - Ms. Nguyen Thi Quynh -

for recommending

and providing

materials and for giving me ideas and advice in widening my knowledge of this issue
and completing this study. I am also grateful to President Huynh The Cuoc, who has
enthusiastically

encouraged me, Dean Luong Thi Ly, Vice-Dean Le Thi Thu Hang for

their helpful comments and advices. Last but not least, I also would like to thank all
people who have given me valuable help to complete the graduation paper.


THE TABLE OF CONTENTS
Page
ABSTRACT
INTRODUCTION

1

CHAPTER 1: OVERVIEW OF ADVERTISING

4

1.1. Definition of Advertising

4

1.2. A Brief History of Advertising

5

1.3. Role and Position of Advertising Industry in Vietnam's Market Economy 7
LA. Typ~s of Advertising
1.5. Media

8
16

CHAPTER 2: ANALYZING FACTORS AFFECTING THE SUCCESS
OF AN AD

27

2.1. Relation hetween Product and Advertising

27

2.2. Distinguish Purposes of Advertising

37

2.3. Advertising Planning

40

CHAPTER 3: ANALYZING THE PROCESS OF AN AD

68

3.1. Studying the Advertising Environment

44

3.2. Creating Message Content

49

3.3. Designing Message Format

55

304. Choosing Message Source

59

3.5. Place and Time

63


CHAPTER 4: CONCLUSION AND RECOMMENDATION

69

4.1. Recommendation

69

4.2. Conclusion

70

ImFERENCES

72

ABSTRACT

In Vietnam, advertising has developed since the open-door policy was applied.
It may be said that advertising plays a role as an indispensable

sector in a dynamic

economy. However, it is a fact that there are only a few reference books and articles
being circulated in our country. The needs of knowledge of this domain have not fully
been satisfied. To create a good advertisement,

the advertiser needs to have not only

a basic knowledge but also other elements. Certainly, mastering a basic knowledge is
the key condition so that a skillful advertiser can combine theory and practice together
to design an effective advertisement.
The aim of this study was to provide some information
advertisement.
commercials,

Data for this study was collected from books, newspapers,
posters, etc, in English or Vietnamese.

chapters and a conclusion and recommendation.
important

role of advertising

understand

the development

provided

about creating

basic

recommendations

knowledge

in socio-eco
of advertising
for

are also suggested

advertising companies.

creating

an

magazines,

The paper includes three main

The first part of the study showed the
development

in Vietnam.

In order to

industry, the last two parts of the study
an

advertisement.

Finally,

some

to overcome current problems of Vietnamese


Introduction

Since the open-door policy was applied, the market economy in Vietnam has
become more dynamic than ever. It brings up many opportunities to investors as well
as producers for developing
economy

under Vietnamese

and expanding their business. Operating in the market
government

control, the purposes

of producers

and

investors are to maximize profit. Therefore, producers have to find out approaches in
order to manufacture

products with high quality and low price, which can constantly

stand in competition. To do this, a business enterprise must be closely connected with
market. At the same time, producers need to have practical measures

to build and

select the best business strategy, which aims at avoiding the waste of the present,
financial potential. From that, they are able to reduce the production cost, to decrease
the price of the product and to enhance

the total income. All of the effectively

operating measures influencing the form of product price are always a meaningful and
necessary means to meet the demand of the market mechanism. Thus, advertising is
an indispensable

measure.

In the market,

development.
competition.
exchange

advertising

has an important

It is used as the most effective
Meanwhile,

role of national

economIc

tool in the market of positive-free

it also plays a role that motivates the goods and services

process moving faster. It is a bridge between

producers

and customers.


Advertising provides information about not only products that people need and want
but also all of ones which producers

intend to develop and to distribute.

For this

reason, customers have much more opportunities of choosing an appropriate good with
high quality, competitive price and fashionable model.
In the enterprise,
achievement

an advertising

strategy mayor

may not contribute

to the

of business objectives. Advertising cost directly impacts on the product's

price and revenue. It is not a strange thing, when an increase in advertising cost will
lead to an increase in a product's price. Yet, business goals will be badly int1uenced, if
the price of the product must include an unreasonable

cost of advertising

Besides, an amount of money used for ineffective advertisements

activity.

may also cause the

profit lose.
Obviously, advertising plays a significant role contributing to the success of a
product as well as the company's
has strongly

developed

business result. Recent years, advertising

along with the development

Vietnam. Today, you can see many advertisements

of the market

everywhere

activity

economy

in

on streets, at public

places, or in the mass media, etc., with the plenty of shapes and types. However, most
advertising strategies still do not have an especial and practical plan. Therefore, there
are still paradoxes.

Why do some advertising

campaigns

cost hundreds of million

VND, but do not get more market shares for a product than others costing only a few
million VND? It is shown that a successful advertisement
much it costs. An effective

advertisement

does not depend on how

is not only printed full information
2

of a


product but also broadcasted

at right place, time, media, etc. An advertising designer

needs to master basis knowledge.

He/she also must have a creative mind and know

how to apply theories to put into practice. As a matter of fact, advertising is a flexible
activity. As there is no standard for an effective advertisement.
This paper presents the study on "Advertising and how to create a successful

advertisement'~ consisting of three chapters. The first chapter gives an overview of
advertising,

including

factors affecting

definition,

types and media. The second chapter

the success of an advertisement.

process of creating

an ad. Finally, the conclusion

opinions making contribution to the Vietnamese

3

The last chapter

describes

and recommendation

advertising industry.

analyses
the

will give


CHAPTER!
Overview of Advertising

1.1. Definition of Advertising
Although advertising is studied and is applied all over the world, there were
several

definitions

of the term

especially for communicating
Bettijune,

1976).

presentation

Advertising

"ADVERTISING".

Advertising

is a medium

information about companies and products (Benedict &
is defined

as any

paid

of goods, services, or ideas by an identified

form

of non-personal

sponsor. Two terms are

highlighted: paid distinguishes advertising from publicity, and non-personal separates
it from personal selling (Berkowitz et ai., 1989) Almost all companies selling a good
or a service

use several

multimillion-dollar

forms of advertising,

it is in the form of a

campaign or a simple classified ad in a newspaper. Advertising is

any form of paid communication,
Traditional

whether

in which the sponsor or company is identified.

media - such as television, radio, newspapers,

mail, billboards and transit cards (advertisements

magazines,

books, direct

on buses and taxis and at bus stops)

- are most commonly used to transmit advertisements

to consumers

(Lamb et ai.,

2000).

4

J

1.2. A Brief History of Advertising
1.2.1. A brief history of advertising in the world
Advertising practice has existed since the very beginning of recorded history.
The signs of advertising have been found in the countries rimming Mediterranean
in turn, such as Pompeii and Romans paints on walls, and Phoenicians

Sea

murals in

prominent rocks.
The early form of advertising was town criers who circulated through Athens
announcing
Greece.

the sales of slaves, cattle, and other goods during the Golden Age in

Another advertising

form was that the artisans placed the mark on their

individual goods, such as pottery.
Thanks to the printing press invented by Gutenberg in 1450, extra copies of a
sign produced by hand were replaced with printed advertisements.
in English appeared

The first printed ad

in 1478. Advertising came into a strong development

series of newspapers

were published. Such newspapers

stage.

A

as The Weekly News and

Tatler contained ads for razor strops, patent medicine, and other consumer products.
One of the countries having the greatest growth of advertising was the United
States. It was said that the United States was the cradle of advertising,
Franklin was considered
has also developed

as father of American advertising.

and Ben

In addition, advertising

in the Soviet Union and China. The 1957 Prague Conference

of

Advertising Workers of Socialist countries made three points on how advertising was

5

to be used. Soviet advertising was to be ideological, truthful, concrete, and functional
(Kotler, 1988). There were more than one hundred advertising agencies in the Soviet
Union in 1988. China opened its door to Western advertising

in 1978. In 1983, the

spending for advertising was about $17 million (Kotler, 1988). Up to now, advertising
has been widely used as a major tool to stimulate demand and supply in the economy
of most countries in the world. It is a diversified, complicated operation involved with
the development

of various trades and sectors. In short, advertising is indispensable

to

the economy.

1.2.2. A brief history of advertising in Vietnam
There is no exactly historical milestone in advertising in Vietnam. However,
since Vietnam applied the open-door policy, advertising has started its activities and
development.

At the beginning

of the advertising

industry, Vietnam

had only 14

representative

offices of foreign advertising agencies and 69 local ones (Van Tuong &

Phuong Hai, 1997). Currently, there are about 20 local and foreign companies, having
representative

offices taking part in this business with a sales turnover up to $800

million in 1998. (Ngoc Long, 2000).
To build a healthy

operating

environment

to promulgate

activities

Vietnam,

the government

ordinance

194/CP approved by Prime Minister Vo Van Kiet on December

regulating on "Advertising

has also started

for advertising

regulations,

In

such as
31 't, 1994

activities in Vietnam"; regular 37IVHTT-TT guiding on
6


implementation
December

of Ordinance

1t\

194 of government;

1995 on improving management,

cultural activities

and service,
1h

decree 32/CP dated May 5

,

ordinance

87/CP

issued

on

establishing orders and disciplines in

boosting elimination

of some serious social evils;

1999 regarding trade promotion, advertising,

and trade

fair, exhibition activities.

1.3. Role and Position of Advertising Industry in Vietnam's Market
Economy
In a market economy, advertising is one measure used by manufacturers

businessmen

and

to compete and to occupy market. In order to do so, they must know how

to take opportunities, to select the right place, time and means for advertising.
Today, more and more Vietnamese

goods are improved in quality and model.

But their price is sometimes not suitable for the money pocket of customers. It is easy
to understand

why a product may not achieve the expected

sales, despite that the

spending for an advertising campaign occasionally costs hundreds of million VND. An
advertising

campaign,

which is effective

or not depending

products, such as high quality, competitive

on several

price, and fashionable

factors of

model. In other

words, high quality advertising is built on the base of a high quality of product.
As a bridge between manufacturers
manufacturers

and customers,. advertising

provides to

information of what their customers need and want. Advertising

7

also


helps manufacturers

to answer the question of which the best production

plan is.

Obviously, the role of advertising in our society is to satisfy people's needs and wants
reasonably.

At the same time, advertising

gives full information

of products and

services. It helps customers to save their time in choosing about a product or service.
Advertising

focuses on making the customer understand

the usefulness,

price, and

quality of a product/service.
Moreover, advertising also plays a role as a motive of the goods and services
exchanging process. It makes the capital circulation move faster. The investors as well
as producers can continuously invest in production and expand the market segment. In
other words, they have the chance to bring more and more goods and services to meet
society demand.

In short, building and developing
important,

meaningful

contribution

an effective

to the development

advertising

industry has an

of the socio-economy

in

Vietnam.

1.4. Types of Advertising
The type of advertising, which a company determines to use, depends on its
promotional objectives. Institutional advertising will be used to build up the image of
the company. In opposite, product advertising will be used, if the company wants to
increase the sales of a specific good or service.
Those are two major types of advertising in this study.
8


1.4.1. Institutional advertising
Today more and more corporations

market multiple products. They need a

type of advertising which will promote their corporation as a whole. Thus, institutional
advertising is designed to establish, change, or maintain the corporation's

identity. It

usually does not ask the audience to do anything but maintain a favorable

attitude

toward the advertiser and its products and services (Exhibit 1.1).

PHAT TRIEN

CUNG
I

~HJ~ IIUG
NET 50 I(

torNo,

9

0&)0 -'0

Exhibit 1.1: This advertisement

for Chinfon Haiphong Cement Corporation is a good

example of institutional advertising.

9

The final goal of corporate advertising is to build a relationship between the
corporation and customers based on trust.
Besides

that, advocacy

advertising,

a form of institutional

advertising

is

typically used to safeguard against negative attitudes and to enhance the company's
credibility among consumers who already favor its position (see Exhibit 1.2). As usual,
it is used to express the company's views on controversial issues.

Exhibit 1.2: Marlboro's Advertisement:

An Example of Advocacy Advertising

10


1.4.2. Product advertising
Instead

of promoting

the corporation's

images,

product

advertising

designed to promote the benefits of a specific good or service. Depending
stage of the product life cycle (Product development,

advertising

Comparative

includes

Pioneering

advertising,

advertising .

• Pioneering advertising
Pioneering

advertising

is

SLJA RUA M,I,T
LAM sA~G DA
POND'S

designed

to stimulate

pnmary

HAT MASSAGE
\0.1 "~

va lam da

'>dnF:mm hdn.

demand' for a new product or
product category.

It is usually

VIT AMIi\1 83
Nuoi dll3nj.! va
t:'ng kh.l n<'lng
h~prill,! dullnR en.\l
lam Iring da.

Dung I..c:.,hQp vdi

used

during

the

introductory

keml.)m
Iring da Pond"!>
l"ho Ian d,a ~ng dfP

min manl';.

stage of the product life cycle
(PLC).
Exhibit
Advertisement:
Pioneering

1.3:

Pond's

An example of
Advertising

and

Effectively Factual Appeal

II

on each

Introduction to market, Market

growth, Market maturity, Sales decline) one of the product advertising
Product

is

Competitive

is chosen.
advertisiilg,


Pioneering advertising gives the consumer full information about the benefits
of a product class. Pioneering

advertising also seeks a created interest. Exhibit 1.3

shows an example of pioneering advertisement.

It is an ad for Pond's cosmetic. Using

skin lightening foam, Pond gives consumers a fresh and smooth skin due to the impact

of vitamin B3. The purpose of a pioneering advertising campaign is to attract women
seeking a better kind of facial cleansing milk, which is more effective than others in
the market.

• Competitive advertising
Competitive
advertising
in cases,

is designed for use
111

which a product

enters the growth stage of PLC
or other new companies

begin

to come on the marketplace.
Exhibit
Advertisement:

1.4:

Suzuki's

An Example of

Competitive Advertising

12


Unlike pioneering
giving

full information,

advertising,
but appeals

competitive

advertising

more to the emotions.

does not focus on
During

this stage,

competitive ads may begin to emphasize some differences between brands or create a
favourable
messages.

attitude

toward the brand. Ads of motorcycles

use very competitive

Distinctions based on such factors as quality, model, and performance.

In

exhibit 1.4. Suzuki Viva introduces customers to a kind of modern motorbike, offering
a safer performance

with two disc brakes and a sporty model.

• Comparative advertising
Comparative

advertising

is designed to directly or indirectly compare two or more

competitive

brands on one or more specific features

of the product. Comparative

Advertising

can also make demand increase by giving consumer information

about

additional uses for a product. Tide, a laundry detergent brand name, uses comparative
advertising to others. The advertiser claims that consumer can wash much more white
clothes when using Tide laundry detergent.
comparative

Exhibit I.S gives another example

advertising of Pepsi and its biggest competitor, Coca-Cola.

13

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Exhibit 1.5: Pepsi's Advertisement:

An Example of Comparative Advertising (sources:

/>
1.4.3. Other types of advertising

*

Reminder Advertising is a form of advertising used to remind consumer

aboul an established

brand's

Heineken's advertisement
is just Heineken

uses, characteristics

and benefits.

In exhibit

1.6,

reminds its customers that beer contained in a green bottle

Lager Beer.

This color has not been changed

century.
14

for more than a


)0;

Exhibit 1.6: Heineken's
Advertisement:

~.~~""-_
An

Example of Reminder
Advertising.

*

Reinforcement

Advertising
assure
have

used

IS

to

users

that

they

chosen

the

right

brand and tell them how
to

get

satisfaction

the

most

from

the
MQu sijc khang

thoy

ddi tTong hefn m9f thi IcY qua. Chi (0 Ihi fa Heineken (hai mau xan

_.

product.
Both reminder

and reinforcement

advertising

---_

..

_--- ..

are designed to maintain the

market share of a mature product.

*Defensive
competitor's

Advertising

is used to offset or minimize

the impact

of a

promotional program. Defensive advertising is also intended to increase

sales or market share.

15


1.5. Media
In order to communicate
broadcasted

or printed via advertising

mail, radio, TV, newspapers,
"Because

to a target audience,

an advertisement

must be

media. They include outdoor display, direct

magazines, the Internet and other type media. However,

of the cost of advertising

media, it is imperative

that the media planner

develop the most cost - efficient plan possible. By cost efficiency we mean reaching
the largest number of prospects at the lowest cost in an editorial environment suitable
for the product" (Russell, et at., 1988)
This part is intended to introduce the present media of Vietnam, such as outdoor advertising,

newspapers,

magazines,

point-of-purchase

advertising,

and specialty

analyzing advantages and disadvantages

radio, television,
advertising.

Internet,

direct mail,

This part also aims at

of each medium at the same time.

1.5.1. Out-door advertising
Out-door
advertisement

advertising

or identification

IS

a major

medium.

It is used

to advertise

any

sign that is located in a public place, such as signs of

the various sizes, shapes and colors.
As stated, out-door advertising has both advantages
must be considered

and disadvantages

that

by anyone who thinks of using this medium as an advertising

media.

16


Out-door advertising is a low-cost and flexible alternative. It is a big, colorful
sign placed in the desired, geographical

market, so it is impossible to be ignored by

the motoring public. It is repeated several times by motorcyclists, and passengers.

However, there are also some disadvantages

as follows, first, due to the high

speed of the motoring public, the ad is limited to a short message. It is restricted to
promote certain well-known

products. The audience

is also distracted by the high

"noise" level. Finally, out-door advertising lacks demographic selectivity.
Today, out-door advertising has developed into many diversified types. One
of the most diversified types is transit advertising. Advertisers have used transit as one
of the most effective advertising media. Depending on the market, an advertiser can
choose to buy messages

on the interior or exterior

shelters,

boxes,

and telephone

etc. Exhibit

of buses and cars, taxis, bus

1.7 gives

an example

of outdoor

advertising.
The advantage

of transit advertising

is that it attracts busy people to read

when waiting for transit vehicles, as some readers who may be too busy to watch TV
or read newspapers.

However, it will become an ineffective

mean of advertising

in

the periods of heavy travel, especially when the audiences are crowded, they rarely
pay attention to reading an advertising copy.

17


Exhibit 1.7: Close Up's Advertisement:

An Example of Outdoor advertising

1.5.2. Newspapers
Newspapers

are used as a major advertising medium for the smallest retailers

as well as some the nation's largest corporations. Newspapers

advertising are divided

into two major categories. These are classified advertising and display advertising.
- Classified
advertisements

advertising

is a form of newspaper

advertising

that divides

for certain classes of goods or services into separate columns. Each

column has a heading describing its special offering such as ads for lost, found, legal
notice, and other categories. All are set in uniform type without illustration.

18

J

- Display

advertising

includes

national

advertising

and local advertising.

Local advertising is placed and paid for by the local merchant or dealer, in contrast to
national advertising of products sold by many dealers.
An advantage

of advertising

which reaches the company's

on newspapers

IS

an important

target market almost daily, because reading newspaper

today is a daily ritual in most homes. It is also flexible geographically
The copywriter

can prepare an ad quickly. The advertiser

products to a widespread

local medium

and temporally.

can choose to advertise

audience anytime and place as desired. But this will cause

high costs, because the more places a company want to cover, the more money is paid
to newspapers

to print their ads. Moreover,

newspapers

are not an attractive

advertising medium, because too many ads are printed on the same small page with
low-quality color and often without illustration. In spite, it is a daily medium; it may
not be particularly

visible because of distractions

from competing ads in the same

newspapers.

1.5.3. Magazines
Magazines

are one of the highest quality media. Unlike newspapers,

ads

printed in magazines have beautiful colors and illustrations. Ads are easy to find and
read in magazines.
magazines

However, there are still competitive

is usually high, the cost per potential

ads. Although, the cost for

customer

may be much lower,

because magazines are often targeted to specialized audiences, and thus, reach more
19