Objectives

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Objectives

• To understand
• The nature, purpose, and scope of advertising and
  what it means to the individual firm.
• The characteristics of the major types of
  advertising.
• How advertising campaigns are developed and
  advertising media are selected.

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Advertising

• All activities involved in presenting to an
  audience a non-personal, sponsor-identified,
  paid-for message about a product or organization
• Trades off personal interaction for a lower cost
  to reach each person
• Big movement towards the personalization of
  messages

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Nature and Scope of Advertising

• Advertising is distinguished from other forms of
  marketing communications
• It has a verbal and/or visual message
• The sponsor of the message is identified
• Delivery is through recognizable (usually mass)
  media
• There is payment by the advertiser to the media
  for carrying the message

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Types of Advertising

• Classified according to
• Target audience (consumer/business)
• What is being advertised (product/service or
  organization/company)
• The objectives sought (stimulation of
  primary/selective demand)

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1. Advertising to Target Audiences

• Consumer advertising
• Generally appears in mass media
• Directed to end consumers
• May be product or institutional in nature
• Business-to-business advertising
• Often called trade advertising
• Directed to a business market

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2. What is Being Advertised?

• Product advertising
• Designed to promote the sale of a specific
  product or service
• May be direct action ? quick-response
• May be indirect action ? over a longer time
• Institutional or corporate advertising
• Promotes the firm or tries to create a positive
  image
• May be customer-service
• May be public-service

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3. What are the Objectives?

• Primary demand advertising
• Intended to stimulate use of a category of
  products
• Pioneering advertising ? Primary demand done in
  the introductory stage of PLC
• Selective demand advertising
• Intended to encourage purchase of a particular
  brand or the products and services of a specific
  firm
• Comparative advertising ? Direct or indirect
  comparisons to a rival brand
• Cooperative advertising
• Involves the sharing of the cost of advertising
  by two or more sponsors ? A manufacturer and
  retailers (vertical) or a group of retailers
  (horizontal)

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The Cost of Advertising

• Traditional mass media are losing ground to new
  media like direct mail directories, weekly
  newspapers, and the Internet
• Most companies spend less than 3 of their sales
  on advertising
• The largest budgets for advertising are in the
  consumer products field
• Many firms spend far more on personal selling
  than they do on advertising

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Developing an Advertising Campaign

• A campaign consists of all the tasks involved in
  transforming a theme into a coordinated
  advertising program to accomplish a specific goal
• Must be consistent with the advertisers
  corporate and promotional strategies

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Developing an Advertising Campaign

• Before designing a campaign, an advertiser must
• Know the target audience
• Establish overall promotional goals
• Set the total promotional budget
• Determine the overall promotional theme

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Steps in an Advertising Campaign

• Define the objectives of the campaign
• Establish a budget for the advertising
• Create the advertising message
• Select the media to be used
• Evaluate the effectiveness of the advertising

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Advertising Objectives

• Specific objectives are dictated by the firms
  overall marketing strategy
• Typical objectives include
• Supporting personal selling
• Improving dealer relations
• Introducing a new product or service
• Expanding the use of a product
• Counteracting substitution
• Speed progression of buying decision

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Establish the Budget

• Assign budget to each portion of the campaign
• Consider the objective and task method
• Must support each expenditure with research

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Creating the Message

• The message must first get the attention of the
  target audience
• It must then influence the audience in the
  desired way
• The message has two elements
• Appeal the reason for accepting the message
• Execution transforming the appeal into words
  and visuals

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Selecting the Media

• Advertisers have to decide what type of media,
  which category, and which specific vehicles.
• Certain factors influence the media choice
• The objectives of the ad
• The audience to be reached
• The requirements of the message
• The time and location of the buying decision
• The cost of placing the advertising in the media

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Characteristics of the Major Media

• Newspapers
• flexible and timely
• have a local orientation and wide coverage
• low cost
• short shelf life
• Television
• versatile (appeal to eye and ear)
• audience is now fragmented
• expensive
• reaches mass audiences, or specialized if desired

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• Magazines
• deliver quality advertising to specific segments
• message stays around
• more viewership from longer reading period
• long lead time
• Direct contact (through mail/internet)
• develops relationships
• higher cost per contact, but less wasted contacts
• databases identify accurate markets

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Characteristics of the Major Media

• Radio
• wide reach, or can target specific segments
• low cost
• local orientation
• short message life
• Out-of-home (billboards, posters, bus shelter
  ads)
• low cost per exposure
• reaches a large percentage of the population
• Specialty advertising
• long life

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The Emerging Media

• Internet advertising is being used in combination
  with traditional advertising to manage
  fragmentation
• Infomercials are not widely used, but have found
  a role for certain products
• Place-based media is growing due to difficulty in
  reaching certain target segments, such as young
  professionals and dual-career families

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Evaluating Advertising

• Difficult to determine the effectiveness of
  advertising
• ads may have several objectives
• work over extended time periods
• results may not be observable
• Direct measurement of effectiveness is possible
  where ads stimulate immediate sales
• Indirect measures measure recognition of the ad,
  aided and unaided recall of the advertiser and of
  the message
• Much advertising is pre-tested before it appears.

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Organizing for Advertising

• Internal departments
• Advertising agencies- companies that provide
  specialized service primarily in advertising, but
  in marketing in general
• Both