ADVERTISING
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ADVERTISING
- 1. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Advertising • Paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media
- 2. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Types of Advertising • Institutional advertising – Promotes organizational images, ideas, and political issues • Advocacy advertising – Promotes a company’s position on a public issues • Product advertising – Promotes products’ uses, features, and benefits • Pioneer advertising – Tries to stimulate demand for a product category with information about the product • Competitive advertising – Tries to stimulate demand for a product with information about the product’s advantages • Comparative advertising – Compares the brand to one or more other brands • Reminder advertising – Reminds customers about an established brand’s uses, characteristics, and benefits • Reinforcement advertising – Assures users they chose the right brand
- 3. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Advertising Campaign • An advertising campaign involves designing a series of advertisements and placing them in various media in order to reach a particular target audience.
- 4. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Eight Steps to Developing an Advertising Campaign • Designing a series of advertisements and placing them in various advertising media to reach a particular target audience
- 5. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Evaluating Advertising Effectiveness • Pretest - Evaluation of ads performed before a campaign begins • Consumer jury - A panel of a product’s actual or potential buyers who pretest ads • Posttest - Evaluation of advertising effectiveness after the campaign
- 6. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Evaluating Advertising Effectiveness (cont’d) • Recognition test - Respondents are shown the actual advertisement and asked whether they recognize it • Unaided recall test - Respondents identify advertisements they have seen recently but are not shown any clues to help them remember • Aided recall test - Similar to unaided recall tests but respondents are shown a list of products, brands, company names or trademarks to jog their memories
- 7. © 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Public Relations • Communication efforts used to create and maintain favorable relations between an organization and its stakeholders Annual Reports Annual reports, when appropriately designed, can generate favorable public relations.
- 8. A series of decisions involving the delivery of messages to audiences Goals to be attained by the media strategy and program Decisions on how the media objectives can be attained The various categories of delivery systems, including broadcast and print media Either radio or television network or local station broadcasts A series of decisions involving the delivery of messages to audiences Goals to be attained by the media strategy and program Decisions on how the media objectives can be attained The various categories of delivery systems, including broadcast and print media Media Terminology Media Planning Media Objectives Media Strategy Media Broadcast Media
- 9. Publications such as newspapers, magazines, direct mail, outdoor, etc. The specific carrier within a medium category Number of different audience members exposed at least once in a given time period The potential audience that might receive the message through the vehicle The number of times the receiver is exposed to the media vehicle in a specific time period The potential audience that might receive the message through the vehicle Number of different audience members exposed at least once in a given time period The specific carrier within a medium category Publications such as newspapers, magazines, direct mail, outdoor, etc. Media Terminology © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Print Media Media Vehicle Reach Coverage Frequency
- 10. Selecting Media Within Class Selecting Broad Media Classes Determining Media Strategy Media Use Decision — Print Media Use Decision — Broadcast Media Use Decision — Other Media Selecting Media Within Class Determining Media Strategy Selecting Broad Media Classes Developing the Media Plan Setting Media ObjectivesSetting Media Objectives Marketing Strategy Plan Creative Strategy Plan Marketing Strategy Plan Situation Analysis Creative Strategy Plan Situation Analysis
- 11. Media Planning Media Planning = Selection + Scheduling Factors Influencing Media Planning Decisions Target Market Profile Looking at Brand/Product Dynamics The Creative Execution Budget Considerations and Media Deals The Competitive Situation Availability and Timing Considerations Cost Efficiency (CPM = Cost per thousand (CPM): cost of reaching 1,000 members of target audience with media vehicle(s) or plan.)
- 12. Sample Flowchart of a Media Plan
- 14. Measurement Problems Lack of Information Inconsistent Terms Time Pressure Inconsistent Terms Lack of Information Measurement Problems Media Planning Difficulties Problems in Media Planning
- 15. Evaluate Performance Implement Media Strategy Develop Media Strategy Establish Media Objectives Analyze the Market Implement Media Strategy Develop Media Strategy Establish Media Objectives Analyze the Market Developing the Media Plan
- 16. Target Market Proportion Full Market Coverage Partial Market Coverage Coverage Exceeding Market Target Audience Coverage © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Population excluding target market Target market Media coverage Media overexposure
- 17. Three Scheduling Methods © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Continuity Pulsing Flighting Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
- 18. The Difference between Reach and Frequency
- 19. Target Group Brand History Share of Voice Purchase Cycles Brand Loyalty Brand Share Usage Cycle Purchase Cycles Share of Voice Brand History Usage Cycle Brand Share Brand Loyalty Marketing Factors Determining Frequency © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Marketing Factors
- 20. Message Complexity Message Uniqueness New Vs. Continuing Campaigns Image Versus Product Sell Message Variation Wearout Advertising Units Wearout Message Variation Image Versus Product Sell New Vs. Continuing Campaigns Message Uniqueness Message Complexity Message Factors Determining Frequency © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Message or Creative Factors
- 21. Clutter Number of Media Used Repeat Exposures Editorial Environment Scheduling AttentivenessAttentiveness Number of Media Used Editorial Environment Repeat Exposures Clutter Media Factors Determining Frequency © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Media Factors
- 22. Determining Relative Cost of Media-Print © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Cost of ad space (absolute cost) Circulation CPM = X 1,000 Cost per thousand (CPM)
- 23. Determining Relative Cost of Media-Broadcast © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin CPRP = Cost of commercial time Program rating Cost per rating point (CPRP)
- 24. Short Message Life High Production Cost Low Selectivity High Absolute Cost Clutter Mass Coverage High Reach Impact of Sight, Sound and Motion High Prestige Low Cost Per Exposure Attention Getting Favorable Image High Production Cost High Absolute Cost Short Message Life Low Selectivity Favorable Image Attention Getting Low Cost Per Exposure High Prestige Impact of Sight, Sound and Motion High Reach Mass Coverage Television Pros and Cons © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Advantages Disadvantages
- 25. Clutter Fleeting Message Audio Only Low Attention Getting Local Coverage Low Cost High Frequency Flexible Low Production Cost Well-segmented Audience Low Attention Getting Clutter Audio Only Well-segmented Audience Low Production Cost Flexible High Frequency Low Cost Local Coverage Radio Pros and Cons © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Advantages Disadvantages
- 26. Visual Only Long Lead Time for Ad Placement Lack of Flexibility Segmentation Potential Quality Reproduction High Information Content Longevity Multiple Readers Visual Only Long Lead Time for Ad Placement Multiple Readers Longevity High Information Content Quality Reproduction Segmentation Potential Magazine Pros and Cons © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Advantages Disadvantages
- 27. Clutter Poor Reproduction Quality Short Life Low Attention Getting High Coverage Low Cost Short Lead Time for Placing Ads Ads Can Be Placed in Interest Sections Timely (Current Ads) Reader Controls Exposure Can Be Used for Coupons Selective Reader Exposure Poor Reproduction Quality Low Attention Getting Clutter Short Life Can Be Used for Coupons Reader Controls Exposure Timely (Current Ads) Ads Can Be Placed in Interest Sections Short Lead Time for Placing Ads Low Cost High Coverage Newspaper Pros and Cons © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Advantages Disadvantages
- 28. Short Ads Local Restrictions Sort Exposure Time Poor Image Location Specific High Repetition Easily Noticed Poor Image Short Ads Sort Exposure Time Easily Noticed High Repetition Location Specific Outdoor Pros and Cons © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Advantages Disadvantages
- 29. Poor Image (Junk Mail) High Cost Per Contact Clutter High Selectivity Reader Controls Exposure High Information Content Repeat Exposure Opportunities Poor Image (Junk Mail) High Cost Per Contact Repeat Exposure Opportunities High Information Content Reader Controls Exposure High Selectivity Direct Mail Pros and Cons © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Advantages Disadvantages
- 30. Websnarl (Crowded Access) Few Valid Measurement Techniques Limited Creative Capabilities Technology Limitations Limited Reach User Selects Product Information User Attention and Involvement Interactive Relationship Direct Selling Potential Flexible Message Platform Few Valid Measurement Techniques Technology Limitations Websnarl (Crowded Access) Limited Creative Capabilities Flexible Message Platform Direct Selling Potential Interactive Relationship User Attention and Involvement User Selects Product Information Internet Pros and Cons © 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Advantages Disadvantages
- 32. Objectives of this session • Are advertising models useful? Some possible ways of modelling advertising messages: • AIDA • DAGMAR or ‘Hierarchy of Effects’ • DRIP • VIPS • DMP • PLC • Maslow • MECCA or Means-End Chain
- 33. The AIDA Model • Attention – Get noticed. • Interest – What’s in it for me? – Problem solving? • Desire – ‘Want’ factor – Brand • Action – How do I get it?
- 34. The DAGMAR Model (Defining Advertising Goals for Measured Advertising Results) also known as ‘Hierarchy of Effects’ model
- 35. Ehrenburg Model (1997) Awareness Trial Reinforcement Nudging Let the customer know you exist (Doesn’t have to be just advertising) Curiosity (rather than ‘persuasion’) could lead to trial of product. Provide reassurance in brand. (Role suitable for advertising) Remind – reinforce - repeat purchase.
- 36. The DRIP Model • Differentiate – Be different from the competition • Remind – Who are we? What do we stand for? • Inform – What’s new? Features-Benefits • Persuade – Why is it right for you?