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Advertising Functions Informing Persuading Reminding Adding Value Assisting Other Company Efforts 2
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1
Overview of Overview of Advertising Advertising
ManagementManagement
Chapter Eight
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Advertising FunctionsAdvertising Functions
Informing
Persuading
Reminding
Adding Value
Assisting Other Company Efforts2
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Advertising FunctionsAdvertising Functions
Informing
• Makes consumers aware, educates them about the features and benefits, and facilitates the creation of positive brand images
• Facilitates the introduction of new brands and increases demand for existing brands
• Performs another information role by: 3
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Advertising FunctionsAdvertising Functions
Persuading
• Persuades customers to try advertised products and services
• Primary demandPrimary demand: • Secondary demandSecondary demand:
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PersuadingPersuading
Gillette MACH3
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Advertising FunctionsAdvertising Functions
Reminding
• Keeps a company’s brand fresh in the consumer’s memory
• Influences brand switching by:
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Advertising FunctionsAdvertising Functions
Adding Value
• Three basic ways by which companies can add value » innovating» improving quality» altering consumer perceptions
• Advertising adds value to brands by: 7
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Advertising FunctionsAdvertising Functions
Assisting Other Company Efforts
• Advertising is just one member of the marketing communications team
• Sometimes, an assister that facilitates other company efforts in the marketing communications process
• Examples?8
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The Advertising Management ProcessThe Advertising Management Process
Advertising Strategy
• Setting Objectives•Formulating Budgets
•Creating Ad messages•Selecting Ad Media and Vehicles
Strategy Implementation
Assessing Ad Effectiveness 9
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Setting Advertising ObjectivesSetting Advertising Objectives
• Expression of management consensus• Guides the budgeting, message, and
media aspects of advertising strategy• Provide standards against which results
can be measured
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Budgeting ConsiderationsBudgeting Considerations in Practice in Practice
• What is the Ad objective?• How much are competitors spending?• How much money is available?
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Budgeting MethodsBudgeting Methods
• Percent-of-Sales Budgeting• Objective-and-Task Method• Competitive Parity Method
(match competitors method)• Affordability Method
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Percentage-of-Sales BudgetingPercentage-of-Sales Budgeting
• A company sets a brand’s advertising budget by simply establishing the budget as a fixed percentage of past or anticipated sales volume
• Criticized as being illogicalWhy??
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Objective-and-Task MethodObjective-and-Task Method
• The most sensible and defendable advertising budgeting method
• Specify what role they expect advertising to play for a brand and then set the budget accordingly
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The Competitive Parity MethodThe Competitive Parity Method
• Sets the ad budget by basically following what competitors are doing
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Affordability MethodAffordability Method
• Only the funds that remain after budgeting for everything else are spent on advertising
• Only the most unsophisticated and impoverished firms
• However, affordability and competitive considerations influence the budgeting decisions of all companies
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Research WorkshopResearch Workshop
• Guiding Questions
• Specific Research Issues
• Lifeline Procedures
• Budget & Reimbursement Procedures
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Research WorkshopResearch Workshop
• Guiding Questions
» Why did FIJI ask for our input? What is our “value added” to their efforts?
» What will distinguish my team’s efforts from all others’ work?
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Research WorkshopResearch Workshop
• Specific Issues in Conducting Consumer Research» Focus groups, surveys, observations» Plan your questions ahead in detail» Select sample(s) carefully» Sensitivity, confidentiality, ethics (the
Tribune test)
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Research WorkshopResearch Workshop
• Lifeline Procedures» How to communicate with FIJI» Prescreen your questions» Thank you’s
• Budget & Reimbursement Procedures» Submit itemized receipts, batched, once per team» If you aren’t sure, check ahead on what is reimbursable» Cash payments to individuals for participation in research
require documentation, SSNs.