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Lecture 8Promotional Strategy 3
Advertising
Lecture OutlineGlobal advertisingConstraints on global advertisingAgency selectionManaging a campaignTypes of advertisingCreative devicesMediaThe Asian marketWatch UK TV ads free - tellyAds advertshttp://great-ads.blogspot.com/Great-Ads
AdvertisingAdvertising is a paid, mediated form of
communication from an identifiable source, designed to persuade the receiver to take some action, now or in the future (Shimp, 2010, 182)
Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor (Kotler & Keller, 2009, 538)
Advertising is hard-hitting and powerful … it’s boring and ineffective … enormously creative and entertaining … and it can be simply annoying (Seminik, Allen, O’Guinn & Kaufmann, 2012, 10)
Global AdvertisingA big issue in the 1980’sTheodor Levitt claimed that markets are
becoming increasingly alike worldwideSaatchi and Saatchi claimed that worldwide
brands would soon become the norm and that such an advertising challenge could only be handled by worldwide agencies
Consolidation resulted in large global agencies, including the WPP Group, Omnicom, Interpublic, Saatchi & Saatchi, who were able to manage big global advertising campaigns
Global AdvertisingGlobal businesses market global brandsThe corporate agenda has had an
impact on centralisationAgency networks have made it easier to
globalise campaignsMost advertising does not travel wellMost clients and agencies are looking
for a communication idea that can be used globally and adapted
Global AdvertisingHowever global, it is rare to find a brand that
is in a category that is equally well developed and faces the same competitors
Despite global media, e.g. CNN, media planning and buying, and media consumption are essentially national and local
Increasingly global advertisers aim to control their advertising from the centre
The importance of multicultural teams has grown
Interbrand's top 100 global brands 2011: Coca-Cola still top but Apple gaining fast - Marketing news - Marketing magazine
Global AdvertisingBoth GDP and adspend are expected to be far
higher in the BRIC economies than in the developed world
TV is exceptionally dominant in Brazil, accounting for two-thirds of total adspend in 2011
Newspapers are set to attract roughly one in three ad dollars in both China and India
Online’s share of the media mix in the BRICs is low by Western standards across all four nations
Globally, online spend is predicted to grow twice as fast as any other media channel in 2011 and 2012
BBC News - Google and Facebook top 2011's most visited sites in US(Adstats: Global advertising forecast, 2011)
Global advertising spend and economic outlook 2009-2011
Overall expenditure is expected to rise by 5.3% North America remains the world’s largest ad market and adspend
will rise from $138.8bn in 2010 to $143.5bn in 2011 TV remains the most popular ad medium in Latin America with
expenditure rising in Brazil by 10.2% in 2011 Online penetration in Chile reached 41% in 2009, Brazil was up to
31% and Mexico rose to 24% Proportion of Facebook users: 41% South America, 40% Europe European adspend will account for roughly one-third of the global
total in 2011 The fastest european ad growth will be in the east with Russia
forecast to increase adspend by 17% Across the Asia Pacific region, adspend growth will hold steady at
8.4% for both 2010 and 2011 with economic growth predicted to be 10.5%
Japan boasts the world’s largest mobile marketing sector, with around $1bn spent on the channel in 2010
(Clift 2011, 1-8)
Constraints on Global AdvertisingPromotion is the most visible as well as
the most culture bound of the marketing functions
Organisation of international programmes can be complex
The company has to decide whether to present itself as a local, foreign, or multinational organisation
The level of economic development, Government control as well as other cultural factors affect what an organisation can do
Constraints on Global AdvertisingSome languages are used in more than
one country (English), but there are more languages than countries - accents
Local help is of two kinds: national personnel in countries where the firm has subsidiaries, and the advertising agency in the local market
Government regulation limits commercials on radio and television
Communications infrastructure – newspaper coverage varies from 1 paper to 2 persons in Japan, to 1 to 200 persons in Bangladesh and most of Africa
Constraints on Global AdvertisingTobacco, alcohol and drugs are subject to
specific restrictionsSome countries limit the languages that
can be usedThere are limits on comparative advertisingMany countries require preclearance of
certain commercialsForeign production may be limitedAd budgets from foreign multi-nationals
may be considered too big – Procter and Gamble
Foreign ownership of agencies is restricted - Indonesia
Restrictions on Advertisements for Specific Products in Selected European Countries
Agency Selection Criteria in International Markets
Size of company’s international businessCompany organisation – decentralisationLevel of involvement between partners –
joint venturesMarket coverage – international market
segmentsQuality of coverageMarketing and media research
Agency Selection Criteria in International Markets
Integration with other marketing communications tools
National or international imageLevel of promotion and media expertiseCommunication, control of operations,
and coordination
Top Marketing OrganisationsOmnicom Group New YorkWPP Group LondonInterpublic Group of Cos. New YorkPublicis Group ParisHavas Suresnes, FranceAegis Group LondonHakuhodo DY Holdings SeattleAsatsu-DK Tokyo(Top 25 Marketing Organisations, “Advertising Age” 2008 Issue
in Czinkota & Ronkainen, 2010, p.581)
Advertising – OverviewThe average person encounters more
than 600 advertisements per dayA company cannot afford to prepare ads
for every possible mediumTo be effective, an ad first be noticed …
be remembered … then, the message must incite some form of action, such as a purchase, a shift in brand loyalty, or … a place in the buyer’s long-term memory
(Clow & Baack, 2010, 144)
Advertising Campaign ManagementThe process of preparing and integrating an
advertising programme with the overall IMC message
The message theme is an outline of the key idea
A leverage point is the key element that taps into, or activates, a consumer’s personal value system (value, idea, or concept)
The appeal attracts information and presents information
The executional framework explains how the message will be delivered (slice-of-life)
(Clow & Baack, 2010, 144)
Managing an Advertising CampaignSOSTAC + 4M’sWhere are we now? – SituationPESTLE, Marketing research,
Account/Media planningWhere do we want to go? – ObjectivesCorporate, Business, Marketing
CommunicationsHow will we get there? – TargetingSegmentation, targeting and positioning
Managing an Advertising CampaignMessage strategy – creative/production
(Tactics)Media strategy – planning and buyingHow should we implement/manage our
campaign? – ActionWhat are our resource requirements?What is our timeframe?How should we monitor activities, and
evaluate success/achievement of objectives – Control
(Smith & Taylor, 2004)
Advertising GoalsBuilding brand imageProviding informationPersuasionSupporting marketing effortsEncouraging action(Clow & Baack, 2010, pp156-157)
Hierarchy of Effects ModelAids in clarifying the objectives of a
campaign and the development of individual ads. There are six steps:
1.Awareness2.Knowledge3.Liking4.Preference5.Conviction 6.Actual purchaseThe approach can help a creative understand
how a consumer reaches purchase decisions(Clow & Baack, 2010, p. 173)
The Promotional MessageCreative people must have a clear idea of
the characteristics of the audienceThe marketer must determine motivationsThe ideal situation is to have a world brandMarketers may develop multiple broadcast
and print advertisementsProduct related regulations will affect
advertising messagesMarketers may want to localise symbolsAesthetics plays a role (Czinkota & Ronkainen, 2010, pp. 577-578
The Promotional MessageThe need to use different agenciesEnvironmental influences – culture,
economic development and lifestyleLanguageThe stage of economic development(Czinkota & Ronkainen, 2010, pp. 580-581
Creative Briefs
Why are we advertising?What is the advertising trying to do?Who are we talking to?What do we know about them that will
help us?What is the main thought we need to put
across (USP)
Creative BriefsWhat’s the best way of achieving this?Why do we think we are saying things the
right way?Essential practical considerations (logo,
tel.no., website address)What other client expectations must we
consider?
Creative Devices used in Message Strategy
Great-Ads: Infamous Pepsi Ad 'Concert' featuring Michael Jackson
MusicHumourSlice of lifeTestimonialsComparisonsFear
Creative Devices used in Message Strategy
Problem solvingTalking headsCharacters/cartoons/animalsCelebrities/personalities/experts
(Consider likeability, similarity, expertise, trustworthiness, dynamism and professionalism)
Creative Devices used in Message Strategy
FactsNewsEmotionRationalityGlamourSymbolsContests and sweepstakesSpecial offersBBC News - In pictures: Cadbury adverts
Creative Brief – Del MonteThe objective – increase awareness of the
smaller size cans with pull-top lidTarget Audience – senior citizens, expecially
those who live alone and suffer from arthritisMessage Theme – the cans not only contain a
small portion, but are easier to openConstraints – copyright logo, toll free
number, website address, legal requirements of a coupon and what is meant by a small serving(Clow & Baack, 2010)
Nike ShoesProfessional athletes were shown in various
executions playing hockey, volleyball, baseball, bowling, boxing etc
The brilliance was in the juxtaposition of famous athletes with sports other than those for which they are known:Andre Agassi played baseballLance Armstrong portrayed as an accomplished
boxerSerena Williams made a vicious serve in volleyball(Shimp, 2010, 216)
Absolut VodkaAbsolut AdThree brands (Stolichnaya, Finlandia, Wybrowa made
up less than 1 percent of the total US Vodka marketCampaign based on print advertisingWith a two word headline1.Absolut described the brand e.g. Absolut perfection2.Characterised the consumer e.g. Absolut Sophisticate3.Associated with places, people, events e.g. Absolute
BarcelonaReplaced in 2007 with “In an Absolute World”(Shimp, 2010, 214)
Media Strategy
Consider:Target audience characteristicsCampaign objectivesBudgetMedia availabilityLocal versus global media
Main Forms of Media
BroadcastPrintOutdoorDigital mediaIn-storeOther Interactive marketing communications(Fill, 2009, 711-800)
Types of AdvertisingFull display adsSemi display adsClassified advertising (lineage/word ads)AdvertorialsInfomercialsDirect response adsWeb/home pagesBanner ads and hypertext linksIntermercial – appears between the
content of a website
Benefits of Advertising
It can reach mass audiences (large coverage)
It is able to target selectivelyIt has a low unit cost (cpt)It is economical, efficient, and effective at
reaching large audiencesIt is effective in establishing brand image
and brand development in international markets
The Effectiveness of Using a Global Look in an Asian Market
For most consumers in East Asian countries, a Western look is synonymous with a global look
English brand names also signal the global quality of a brand
The influence of ethnicity is limited to perceptions of product quality
The influence of language is limited to perceptions of brand friendliness, brand trust and brand liking
The Effectiveness of Using a Global Look in an Asian Market
The influence of Western models is positiveThe influence of English brand names is
negativeChinese brand names activate a positive
home-country biasThe use of Asian models does not improve
consumer’s perceptions of products on affective domains regarding brand friendliness and brand liking
(Chang, 2008)
ChinaThe Chinese ad market is already the
world’s fourth-largest in terms of spendToiletries are currently the biggest-
spending ad category in ChinaMost urban-dwelling 13-45 year olds
believe using “famous” brands can enhance their social standing
The nation’s largest demographic group is now aged 15-24 reflected in a rapid increase in online adspend
(Adstats: China, 2012)
ReferencesAdstats: Global advertising forecast (2011). Retrieved March 20, 2012 from
http://www.warc.om/Content/PrintViewer.aspx?MasterContentRef=7341c101-a212-
Adstats: China (2012). Retrieved March 20, 2012 from http://www.warc.com/Content/PrintViewer.aspx?MasterContentRef=b22b1d1e-5257
Chang, C., (2008) The Effectiveness of Using a Global Look in an Asian Market. Journal of Advertising Research 48, 2, (June).
Clift, J. (2011) Global advertising spend and economic outlook 2009-2011. Retrieved March 20, 2012 from http://www.warc.com/Content/PrintViewer.aspx?MasterContentRef=09E3FF4-E9B2-4
Clow, K.E, & Baack, (2010) Integrated Advertising, Promotion and Marketing Communications, 4e. Upper Saddle River, NJ: Pearson Prentice Hall
Czinkota M.R. & Ronkainen, I.A., (2010) International Marketing, 9e. Mason, OH: Cengage
Fill, C., (2009) Marketing Communications, Interactivity, Communities and Content, 5e. Harlow: Pearson Education
ReferencesGoodman, C., (2009) Creating the best online advertising. Retrieved
March 20, 2012 from http://www.warc.com/Content/PrintViewer.aspx?MasterContentRef=9864db97-82d9
Minami, I., (2008) Why western brand advertising has not been established in Japan. Nikkei Advertising Research Institute, Japan, (February)
Semenik, R.J. (2012) Advertising and Promotions, An Integrated Brand Approach, 6e, Mason, OH: South-Western Cengage Learning
Shimp, T. (2010) Integrated Marketing Communication in Advertising and Promotion, 8e. Mason, OH; Cengage Learning
Smith P.R. & Taylor, J., (2004) Marketing Communications, An Integrated Approach. London: Kogan Page
Yuxian, G., Deepender, R., & Moulee, S., (2007) The ingredients for successful advertising in China. Admap Magazine, (February). Retrieved from http://www.warc.com/ArticleCenter/ArticleViewer.asp?CType=A&AID==84664&PID...