1. Businesses use advertising because it does work 2. No one is yet quite sure how it works
Objectives Describe what advertising is and discuss the major types of advertising Describe the process of developing an advertising campaign Explain how marketers evaluate advertising Understand direct marketing Explain the future of m-commerce
Its an Ad Ad Ad Ad World Advertising is nonpersonal communication paid for by an identified sponsor using mass media to persuade, inform, and remind an audience.
Types of Advertising Product advertising - message focuses on a specific product Institutional advertising - message focuses on activities, personality, or point of view of a company advocacy advertising public service advertisements (PSAs)
Who Does Advertising? An advertising campaign is a coordinated, comprehensive plan that carries out promotion objectives and results in a series of advertisements placed in media over a period of time
Agencies limited-service full-service
The Body of Campaign Creation Account management (soul) Creative services (heart) Research and marketing services (brains) Media planning (legs)
Developing the Advertising Campaign Identify the Target Market Establish Objectives, Message, and Budget Design Ad Campaign Pretest Campaign Choose Media and Schedule
1. Merchandise what is it that we have to promote? 2. Markets to whom are advertising ? 3. Motives why do these consumers buy? 4. Messages what appeals will work best? 5. Money how much should we spend and when? 6. Media where and when should we reach our audience? 7. Measurement how can we learn to do better?
Advertising and persuasive communication systemAdvertiser
consumer
I II
Goals
(=) (=) (=) Channel
reactions or responses perceived message delivered message
IV
intended message actual advertisement
V
III
VI
Stages in Advertising and persuasive communication system Stage I advertising goals Persuasion (convincing of a Brand superiority) Reinforcement (assisting favorable consumer evaluationfollowing a purchase)
Reminder (to keep it alive) Purchase precipitation ( encouraging consumers to buy now) Stage II Intended message deals with the strategy by which the stated goals can be achieved
Stage IIIActual advertisementEncoding of the message this reflects art of advertising Conversion of mental strategy into physical reality Thousands of interacting decisions exact words, models
colors music timing etc. Etc.Selection and purchase of MEDIA time , space in specific channels to facilitate delivery of ads to the final consumer.
Stage IVDelivered ads .Deals with the consumer reception process Delivery of ad from channel to the consumer Conditions under which it is received or even not received by the target audience
Stage VPerceived message .Post delivery has the message been perceived by the consumer Is the message being decoded as intended by the sender
Stage VIReactions or responsesDo the responses match the goals
Advertiser
consumer
I
GoalsPotential gap 1
(=)
reactions or responsesPotential gap 5
IV
II
intended messagePotential gap 2
(=)
perceived messagePotential gap 4
V
III
actual advertisement
(=)Potential gap 3
delivered message
VI
Potential Gaps and Pitfalls Potential Gaps 1The ad strategy is not able to achieve the goals
Could be due to goal are unrealistically highLack clarity Or the strategy chosen (intended message)
Potential Gaps 2Recognizes the thousands of tactical decisions that go together to make up the actual advertising campaign. The gap will occur in those cases in which the actual advertising does not capture the intended strategy for the campaign, or for the mistakes in the ad itself
If This Is Their Best. . . ! Sometimes advertising deadlines cause problems in local media as well. This happened in one ad run by a car dealership that had the bold headline "Here's Our Best to You! Obviously an untrained assistant had handled the art, which showed no wheels on th right side of the luxury auto (a different brand than in our mock-up shown here!), am some tires on the left that give a new meaning to the term "flat tire!" How many autos d you think that ad might have sold?
Potential Gaps 3Reflects any problem that may occur in the physical transmission or delivery of the ad to the consumer for whom it is intended
Zapping Zipping
Potential Gaps 4Refers to any problem that occurs during consumers perception of each ad as it is delivered to them.
Consumers must be able to understand the language and symbols as they have been used by the sender
Potential Gaps 5The final potential gap refers to the advertisers goal that the perceived message leads to particular response or reaction on the consumers part.
This gap involves two important processes1. 2. Retention of message after the ad exposure is over. (message recall by having stored it in LTM) Consumers need to be persuaded or influenced by the advertising (to be persuaded or being reminded or purchase precipitation)
Hierarchy of advertising effectsMessage presentation
P
Yes
Attention to message No
A
Yes
comprehension
C Yes
No Yielding Y Yes To conclusions retention R Of New belief No
No
Yes
No
Behavior B Yes on New belief Successful completion No
OVERALL IMPACT OF THE ADVERTISEMENT
P = P(P) X P(A) X P(C) X P(Y) X P(R) X P(B) =0.5X0.5X0.5X0.5X0.5X0.5 =0.0156 PROBABILTIESWill be product class specific Probabilities for systems stages are not likely to be equal Repetition effect will change the probabilities Probabilities need to be applied to huge consumer market
Establish Objectives
Message goals Budget
Design the Ad Creative strategy is the process that turns a concept into an advertisement Creatives try to develop a big idea Creatives: art directors copywriters photographers
Advertising Appeals Reasons Why (USP)&(UVP) Comparative Advertising Demonstration Testimonial Slice-of-Life Lifestyle Fear Sex Humor Slogans/Jingles
Pretest What Will Be Said Copy testing measures ad effectiveness Concept testing Test commercials (with animatics or storyboards) Finished testing
Choose the Media Media planning is a problem-solving process for getting a message to a target audience in the most effective fashion Where to say it When to say it
Television ProsCreative and flexible Prestigious High impact messages Network TV is cost effective for reaching mass audience Cable TV is good for reaching targeted group
Cons Quickly forgotten Requires frequent repetition Increasingly fragmented audiences High costs on an absolute basis Shorter ads result in increased clutter
Radio Pros Good for selective targeting Heard out of home Relatively low cost Can be modified fast Uses listener imagination
Cons Listeners may not pay full attention Small audiences mean ads must be repeated frequently Not appropriate for products requiring demonstration
Newspapers Pros Wide exposure and coverage Flexible format Useful for comparison shopping Local retailers can tie in with national
Cons Most dont spend much time reading newspapers Low readership among teens and young adults Short life span Very cluttered
Magazines Pros Target audiences High credibility and interest level Long life span and pass along rate Excellent visual quality
Cons With exception of direct mail, the most expensive form Long deadlines Must use several magazines to reach target
Outdoor Pros Very high reach Low cost Good for supplementing other media
Cons Hard to communicate complex messages Cannot demonstrate product effectiveness Controversial and disliked
Direct Response Pros Ads can target extremely narrow audiences Messages can be timed Easy to measure effectiveness
Cons High cost per exposure Target lists must be constantly updated Ads lack credibility among many consumers
Innovative Media Place-based media - transmit messages in public places Guerilla marketing - use unconventional locations and intensive word-of-mouth campaigns to push products
Internet Advertising Banners Buttons Sponsorships Search engine and directory listings Pop-up ads Email permission marketing spamming
Web site design
Media Scheduling Specifies the exact media to use for the campaign, when and how often the message should appear Outlines the planners best estimate of which media and vehicles will be most effective in attaining campaign objectives
Factors Affecting Media Scheduling Target market profile People reached by different vehicles Advertising patterns of competitors Capability of medium to convey desired information Compatibility of product with editorial content
Media Scheduling Terms_1 Impressions - the number of people who will be exposed to a message placed in one or more media vehicles Reach - the percentage of the target market exposed to the media vehicle Frequency - the average number of times a person in the target group will be exposed to the vehicle
Media Scheduling Terms_2 Gross Rating Points (GRPs) - reach * frequency Cost per Thousand (CPM) - compares the relative cost effectiveness of different media vehicles that have different exposure rates; it reflects the cost to deliver a message to 1,000 people
Media Scheduling: How Often? Continuous - steady stream throughout year Pulsing - varies amount of adve
