Advertising

1
Advertising

• What we will learn
• 1. Types of Advertising
• 2. Advertising Management Process
• 3. Advertising Strategy

2
Types of Advertising

• Institutional
• Promotes organizational images, ideas
• Advocacy
• Promotes a point of view on a public issue

3
Types of Advertising

• Product
• Promotes product uses, features, benefits
• Pioneer (new products, industry associations,
  market leaders)
• Product category advertising, builds primary
  demand
• Competitive
• Promotes a brands special features, uses,
  benefits
• Comparative (Direct)
• Specifically compares two or more brands
• Reminder
• Serves to remind target about existing brands
  features, benefits, etc.
• Reinforcement
• Reassures buyers of validity of purchase decision

4
Advertising Campaign

• Creating and executing advertisements to
  communicate with a target audience

5
Developing Implementing An Ad Campaign
Create Advertising Platform
Budgeting/ Advertising Appropriation
Define Advertising Objectives
Develop Media Plan
Identify Target Audience
Create Advertising Message
Evaluate Advertising Effectiveness
Execute Campaign
6
Formulating Advertising Strategy
Identify Target Audience

• Group of people at whom ads are targeted
• Entire target market or sub-markets
• Analyses yield useful information for
• Creating advertising platform
• Creating specific messages
• Media selection

7
ObjectivesHierarchy of Effects
Purchase
Purchase Intention
Attitude
Beliefs/Knowledge
Awareness
Unawareness
8
ObjectivesHierarchy of Effects
Purchase
Purchase Intention
Attitude
Beliefs/Knowledge
Awareness
Unawareness
9
Formulating Advertising Strategy
Define Objectives

• Reasons for setting advertising objectives
• Get top management buy-in
• Guide budgeting, message creation, media
  selection
• Provide standards against which results are
  measured
• Objectives need to be
• Clear, precise, measurable

10
Formulating Advertising Strategy
Objectives

• Increase sales
• Increase click-throughs
• Increase brand awareness

• Increase sales by 50 from 10,000 to 15,000 in
  one month
• Increase click-through rate from 0.5 to 0.75 in
  one week
• Increase brand awareness from 70 to 90 in one
  year

11
Formulating Advertising Strategy
Create Advertising Platform

• Basic selling points to be included in the
  campaign
• Follows from positioning strategy
• Ideally, based on what is important to target
  market (Recall that Attitude Beliefs x
  Importance Ratings, for set of attributes)
• Realistically, often based on employees, agency
  execs opinion

12
Formulating Advertising Strategy
Determine Budget

• Total amount of money allocated for advertising
  during a specific period
• Most difficult advertising decision
• Advertising effectiveness issues
• Sales-response to advertising is influenced by a
  multitude of factors
• Campaign objectives could be
• Unclear
• Multiple

13
Methods of Advertising Budgeting
Budget set to match competitors Absolute
dollars, or Percentage of sales Tracking
competitors allocations at local, regional,
national, global levels by media is useful for
benchmarking Limitations ________
_________ ________ _________
Competitive Parity
Percent of Sales
Objective Task
14
Methods of Advertising Budgeting
Competitive Parity
Budget set as a percentage of Past
sales Forecast sales Percentage based
on History Industry norms Advantages
_______ Principal Disadvantage ______
____________
Percent of Sales
Objective Task
15
Methods of Advertising Budgeting
Determine budget by calculating anticipated costs
of the various advertising tasks required to
achieve campaign objectives Production
costs Media costs Agency compensation Principal
Advantage Requires ____________ _______
Competitive Parity
Percent of Sales
Objective Task
16
Formulating Advertising Strategy
Advertising
Develop Media Plan

• A media plan specifies media vehicles, schedule,
  and expenditures
• Outstanding advertising is useless unless the
  message is delivered to
• the right customers
• at the right time
• with sufficient frequency

17
Media Strategy Activities
Analyze Target Audience
Specify Media Objectives
Select Media
Schedule Purchase Media
18
Media Strategy Activities
Analyze Target Audience
Must be clearly identified profiled Based
on geographic factors demographics product-usa
ge concerns psychographics media habits
19
Media Strategy Activities
Specify Media Objectives

• Reach Percentage of target audience exposed to
  message in a given period
• Frequency Number of times those reached are
  exposed to message
• GRP (Gross Rating Points) Reach x Frequency
• Continuity When are the best times to reach
  target?
• Cost What is the least expensive way to
  accomplish the other objectives?
• Cost comparison indicator (e.g., CPM) Cost/Number
  reached
• Statistic for comparing the cost efficiency of
  vehicles in the same medium

20
Media Strategy Activities
Select Media
Television Radio Magazines Newspapers Internet Dir
ect mail Transit inside/outside Outdoor
21
Media Strategy Activities
Schedule Purchase Media

• Types of Schedules
• Continuous
• Flighting
• Pulsing

C
F
P
22
Formulating Advertising Strategy
Create Advertising Message

• Message Content Form are a function of
• Category
• Product
• Target market characteristics
• Objectives
• Media choice
• Advertisers use an array of techniques

23
Advertising Techniques
Informational
In print, called straight line or reason-why
copy
24
Advertising Techniques
Humor
Must be appropriate for product Gains
attention Humor shouldnt overshadow
product interfere with message
25
Advertising Techniques
Sex Appeals
Have stopping power May offend some people Are
less offensive when clever Shouldnt overwhelm
message
26
Advertising Techniques
Celebrity
Source/endorser characteristics influence message
acceptance
27
Source Characteristics Expertise

• Perceived qualifications of source
• Important for technical/ complex products
• Salespeople tend to score high
• In WOM, customers search for expert sources
• In direct mail advertising, include testimonials
  from experts

28
Source Characteristics Trustworthiness/Credibilit
y

• Is source disinterested?
• Experience What is my history with source?
• Two-sided messages may increase credibility

29
Source Characteristics Trustworthiness/Credibilit
y

• Some types of sources perceived as more credible
• Employees of organization (vs. Company
  Presidents)?
• Customers of your organizations/ testimonials
• Some celebrities have trustworthy reputations
  (Michael Jordan?)

30
Source Characteristics Attractiveness

• Likability
• Tend to trust more likable source
• More likely to purchase from sources you like
• Similarity
• Everyday people approach
• Salespeople try to establish similarity with
  customers
• Physical Attractiveness
• Gains attention
• Isnt always more credible
• Can interfere with message

31
Advertising Techniques
Emotional
Fear Appeals Used to believe strong fear appeals
dont work Strong fear appeals work when
believable
32
Advertising Techniques
Other--Animation
Gimmicks Clever execution attracts
attention Often humorous Examples Morphing,
claymation, animation
33
Advertising Techniques
Other Cause Related Appeals
34
Effective advertising messages
Create Advertising Messages

• Extend from sound marketing strategy
• Take the consumers view
• Are persuasive
• Find a unique way to break through clutter
• Never promise more than can be delivered
• Prevent the creative idea from overwhelming the
  strategy
• Are creative!

35
Advertisement Effectiveness
Evaluate Advertising Effectiveness

• Receivers have selective perception
• More likely to notice ad when
• Regularly involved with product category
• Involved with values shown in ad
• Ad is vivid
• Little/no noise

36
Advertisement Effectiveness
Evaluate Advertising Effectiveness

• Receiver may notice message, but not decode as
  intended
• May not understand
• May counterargue (that thigh cream will not firm
  my thighs!)
• May provide source derogations

37
Assessing Advertising Effectiveness

• Advertising can be evaluated before, during
  after the campaign
• Pre- Post- tests
• During Direct response elements
• Recognition Recall Tests
• Unaided recall
• Aided recall
• Before/After Measures

38
Single-source-systems
Assessing Advertising Effectiveness

• Possible by television meters and optical laser
  scanning of universal product codes (UPC)
• Unique--All relevant data is collected by a
  single source, processed, and made available in a
  readily usable format to retailers and
  manufacturers
• Information Resource Inc. (IRI) - BehaviorScan