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Advertising Strategy

                    Session 7
                  Summer 2008




Ganesh Iyer
Advertising Planning Process


   Brand Positioning                             Target Market


                        Advertising Objectives
                        Advertising Objectives


                           Budget Decisions
                           Budget Decisions


              Creative Strategy
              Creative Strategy          Media Strategy
                                         Media Strategy


                         Campaign Evaluation
                         Campaign Evaluation
Ganesh Iyer
Advertising Objectives


      Create awareness for new products

      Inform consumers
              » of product features and benefits
              » price changes
              » Important for building primary demand

      Persuasion
              » Build brand preference or change buyer perceptions
              » especially important for building demand in competitive markets.

      Reminder advertising: maintain top-of-mind awareness




Ganesh Iyer
Hierarchy of effects
              Communication Process


                    Awareness



                     Interest



                  Liking, Preference



                  Purchase, Action



Ganesh Iyer
Creative Strategy


              Develop the USP “unique selling proposition” or the “Creative
              Hook”

      Unique Selling Proposition
        Translates “brand positioning” into a compelling message.

              Objective is “Memorability”




Ganesh Iyer
Creative Strategy:
                      Emotional vs. Rational Appeal


      Emotional = appeal to psychological, social or symbolic needs. “Pull at the
        consumer’s heartstrings”

      Rational = provide information about functional and utilitarian aspects of
         the products.

      Shift towards emotional execution strategy in the later part of the product
         lifecycle
           » Intense competition and proliferation of substitutable products
              (Michelin)
           » Critical to increase “Product involvement”
           » http://www.youtube.com/watch?v=sIkQRXkpwQI
           » http://www.youtube.com/watch?v=SdPLf3FoInE

Ganesh Iyer
Taxonomy of Emotional Appeals

      Fear appeal
        can be an effective motivator but has the danger of alienating
        consumers
              » Show the consumer how to avoid the problem.
              » Provide concrete supporting information




Ganesh Iyer
Taxonomy of Emotional Appeals


      Humor
              »   “Memorability” device.
              »   Humor should not clutter the product benefits.
              »   Execution detail: Show consumer how to avoid the problem.
              »   Pre-test to check if consumer
                   – i) recalls product benefit
                   – ii) Attitude_product versus Attitude_ad = will the message be persuasive and will
                     the product be taken seriously.
              » http://www.youtube.com/watch?v=kVCGBohc20k&mode=related&search=
              » http://www.youtube.com/watch?v=f3mXaATLeRM
              » http://www.youtube.com/watch?v=zV-yGp4l8B8

      Fantasy
              » seen often in cosmetics advertising
              » http://www.youtube.com/watch?v=r1g5qcKcVCM

Ganesh Iyer
Types of Rational / Informational Appeal


      Technical Expertise or Scientific Evidence: (Crest…“Look ma no
        cavities”)

      Comparative: Product features vs. competition (Nike vs. Reebok)
               » http://www.youtube.com/watch?v=xhiyDQNmEjY

              Advantages
               » High ability to get attention
               » Helps in competitive positioning

              Disadvantages
               » Advertise the competition. Makes competition more salient.
               » Can use only if there is clear objective superiority for the advertised
                  attribute.

Ganesh Iyer
Media Decisions


              Define the target market.

      Quantitative Measures
              Reach: the percentage of people in the target market who are exposed
              to the ad campaign during the defined time duration
               » 70% of the target market during the first three months of the
                   campaign

              Frequency: A measure of how many times an average individual in the
              target market who have been reached .




Ganesh Iyer
                                                                                     1
Media Decisions


      Advertising Exposure
              Gross Rating Points = 70(Reach) 4(Frequency) = 280 GRP’s
              1GRP = 1 exposure to 1% of the audience.

      Qualitative Measures
         Impact; is the qualitative aspect of the medium
               » Newsweek vs. The National Enquirer
               » Sports illustrated vs. Time for tennis racquets

              Trade-off between reach and frequency

              Pulsing vs. Continuity
               » Pulsing most critical for new products. Why?
               » Continuity needed when faced with intense competition
Ganesh Iyer
                                                                         1
Message



      Good advertising creative strategy translates the brand’s
        positioning statement into a persuasive and memorable
        message. A great creative will provide lasting impact even if
        advertising budgets are constrained.

      “ How you say it is as critical as what you say”




Ganesh Iyer
                                                                        1
Analysis Framework

     First mover advantages                         Company Analysis                       Perceptual mapping
                                                    Marketing Myopia
              Competitor                                                                      Customer Analysis
               Analysis
                                   Positioning                         Segmentation



                                            Marketing Strategy                             Marketing Orientation



                                                                       Branding
                                                             Product
                              Pricing process                             Product Line Strategy
                              Pricing and innovation (ODI)    Price       (Cambridge)

                                                         Promotion
                                                             Place     Going to market
                                 Direct marketing
                                                                       (Goodyear)
                                 (Calyx)



                                                         Market
Ganesh Iyer
                                                                                                                   1

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Advertising summer08 stu

  • 1. Advertising Strategy Session 7 Summer 2008 Ganesh Iyer
  • 2. Advertising Planning Process Brand Positioning Target Market Advertising Objectives Advertising Objectives Budget Decisions Budget Decisions Creative Strategy Creative Strategy Media Strategy Media Strategy Campaign Evaluation Campaign Evaluation Ganesh Iyer
  • 3. Advertising Objectives Create awareness for new products Inform consumers » of product features and benefits » price changes » Important for building primary demand Persuasion » Build brand preference or change buyer perceptions » especially important for building demand in competitive markets. Reminder advertising: maintain top-of-mind awareness Ganesh Iyer
  • 4. Hierarchy of effects Communication Process Awareness Interest Liking, Preference Purchase, Action Ganesh Iyer
  • 5. Creative Strategy Develop the USP “unique selling proposition” or the “Creative Hook” Unique Selling Proposition Translates “brand positioning” into a compelling message. Objective is “Memorability” Ganesh Iyer
  • 6. Creative Strategy: Emotional vs. Rational Appeal Emotional = appeal to psychological, social or symbolic needs. “Pull at the consumer’s heartstrings” Rational = provide information about functional and utilitarian aspects of the products. Shift towards emotional execution strategy in the later part of the product lifecycle » Intense competition and proliferation of substitutable products (Michelin) » Critical to increase “Product involvement” » http://www.youtube.com/watch?v=sIkQRXkpwQI » http://www.youtube.com/watch?v=SdPLf3FoInE Ganesh Iyer
  • 7. Taxonomy of Emotional Appeals Fear appeal can be an effective motivator but has the danger of alienating consumers » Show the consumer how to avoid the problem. » Provide concrete supporting information Ganesh Iyer
  • 8. Taxonomy of Emotional Appeals Humor » “Memorability” device. » Humor should not clutter the product benefits. » Execution detail: Show consumer how to avoid the problem. » Pre-test to check if consumer – i) recalls product benefit – ii) Attitude_product versus Attitude_ad = will the message be persuasive and will the product be taken seriously. » http://www.youtube.com/watch?v=kVCGBohc20k&mode=related&search= » http://www.youtube.com/watch?v=f3mXaATLeRM » http://www.youtube.com/watch?v=zV-yGp4l8B8 Fantasy » seen often in cosmetics advertising » http://www.youtube.com/watch?v=r1g5qcKcVCM Ganesh Iyer
  • 9. Types of Rational / Informational Appeal Technical Expertise or Scientific Evidence: (Crest…“Look ma no cavities”) Comparative: Product features vs. competition (Nike vs. Reebok) » http://www.youtube.com/watch?v=xhiyDQNmEjY Advantages » High ability to get attention » Helps in competitive positioning Disadvantages » Advertise the competition. Makes competition more salient. » Can use only if there is clear objective superiority for the advertised attribute. Ganesh Iyer
  • 10. Media Decisions Define the target market. Quantitative Measures Reach: the percentage of people in the target market who are exposed to the ad campaign during the defined time duration » 70% of the target market during the first three months of the campaign Frequency: A measure of how many times an average individual in the target market who have been reached . Ganesh Iyer 1
  • 11. Media Decisions Advertising Exposure Gross Rating Points = 70(Reach) 4(Frequency) = 280 GRP’s 1GRP = 1 exposure to 1% of the audience. Qualitative Measures Impact; is the qualitative aspect of the medium » Newsweek vs. The National Enquirer » Sports illustrated vs. Time for tennis racquets Trade-off between reach and frequency Pulsing vs. Continuity » Pulsing most critical for new products. Why? » Continuity needed when faced with intense competition Ganesh Iyer 1
  • 12. Message Good advertising creative strategy translates the brand’s positioning statement into a persuasive and memorable message. A great creative will provide lasting impact even if advertising budgets are constrained. “ How you say it is as critical as what you say” Ganesh Iyer 1
  • 13. Analysis Framework First mover advantages Company Analysis Perceptual mapping Marketing Myopia Competitor Customer Analysis Analysis Positioning Segmentation Marketing Strategy Marketing Orientation Branding Product Pricing process Product Line Strategy Pricing and innovation (ODI) Price (Cambridge) Promotion Place Going to market Direct marketing (Goodyear) (Calyx) Market Ganesh Iyer 1