copyright 2000 by houghton mifflin company. all rights reserved. 18-1 advertising b341

Copyright 2000 by Houghton Mifflin Company. All rights reserved. 18-1

advertising

B341


The Nature and Types of Advertising

• Advertising–Paid nonpersonal communication about an organization and its products transmitted to a target audience through mass media

–Promotes goods, services, ideas, images, issues, people, and anything else that advertisers want to publicize or foster


General Steps in Developing

andImplementing an Advertising

Campaign

FIGURE 18.1


Action

Desire

Conviction

Comprehension

Awareness

Advertising Pyramid

Slide 48


The Nature and Types of AdvertisingType Purpose

Institutional Promotes organizational images, ideas, and political issues

Advocacy Promotes a company’s position on a public issue

Product Promotes products’ uses, features, and benefits

Pioneer Tries to stimulate demand for a product category rather than a specific brand by informing potential buyers about the product

Competitive Points out a brand’s special features, uses, and advantages relative to competing brands

Comparative Compares two or more brands on the basis of one or more product characteristics

Reminder Reminds consumers about an established brand’s uses, characteristics, and benefits

Reinforcement Assures users they chose the right brand and tells them how to get the most satisfaction from it


Institutional Ads

• Ads that promote a companies overall philosophy, or portray a positive image for the firm without really attempting to focus on any specific product or service.– Church Family commercials


Comparative Ads

• Are legal in the U.S., but proper substantiation required for any claims made.

• Some countries prohibit comparative ads.


Copy Platform• Given to the ad agency creative team• Provides:

– Objective Statement (what are we trying to accomplish and with which target?)

– Positioning Statement– Supporting evidence (back up the

positioning)– Tone Statement – personality of the

campaign (emotional? humorous? rationale? informational?)


A Big Idea

• Conveys the positioning• Appeals to the target• Delivers on the objective• Breaks through (gets attention)• Is memorable• Has legs

– Can be used in multiple mediums– Can be executed in several different versions of

the same idea.

More info


Big Idea

• Should be 3 or 4 sentence

• Should explain the content of the promotions so I would have an idea what individual ads would look like

• If there is a “clever twist” it should be explained

• Can include a slogan or tag line


Objectives

• Create awareness• Stimulate demand• Encourage product

trial• Identify prospects• Retain loyal

customers

• Facilitate reseller support

• Combat competitive promotional efforts

• Reduce sale fluctuations


Reach and Frequency

• Reach: % of target audience reached at least once by your media plan

• Frequency: average # of times a target audience member sees the ad in a four-week period.


Reach vs. Frequency • Often, you can’t afford to hit both real heavy.• Maximize reach if you have a cutting edge,

breakthrough campaign, or are simply trying to maintain loyalty.– set a minimum frequency (3x for established

brand, 5x for new brand) and then maximize reach

• Maximize frequency if you have an action objective, a complex message, or heavy competitive advertising levels.– Set a minimum reach – say 50%, and then

maximize frequency


Roman Meal ExampleTarget Women 50-65

• Focus on two months of seasonal increase in bread usage Sept/Oct 1993

• Nationally , bought combination of daytime and early morning– Reach 69%, Frequency 9.8x per month

• Locally in key markets, added early news and prime access– Reach 80%, Frequency 4.0x per month


Roman Meal ExampleTarget Women 50-65

• Today Show 4.4 rating points• Good Morning America 4.8 rating points• CBS This Morning 3.7 rating points• Price is Right 1 7.3 rating points• Price is Right 2 9.3 rating points• Young and Restless 11.1 rating points• As the World Turns 7.2 rating points• Bold and Beautiful 7.9 rating points


Developing an Advertising Campaign

• Determining the Advertising Appropriation

Budgeting Approach Methodology

Objective-and-Task Determining advertising objectives and then calculating the cost of all the tasks needed to attain them

Percent-of-Sales Multiplying the firm’s past and expected sales by a standard percentage based on what the firm has traditionally spent on advertising and the industry average for advertising spending

Competition-Matching Setting the advertising budget to match competitors’ spending on advertising

Arbitrary Setting the advertising budget at a level specified by a high-level executive in the firm



• Developing the Media Plan–Specifies media vehicles (e.g., magazines, radio, and television stations, and newspapers) and the schedule for running the advertisements

–Plan objectives focus on achieving the reach and frequency that the budget will allow.• Reach: the percentage of consumers in a target

market exposed to an advertisement in a specified period

• Frequency: the number of times targeted consumers are exposed to an advertisement in a specified period

Example



• Developing the Media Plan (cont’d)–Cost comparison indicator

• A means of comparing the cost of vehicles in a specific medium in relation to the number of people reached

• The indicator is stated as the cost for exposing one thousand people (CPM) to an advertisement in a medium.

–Media scheduling types• Continuous• Flighting• Pulsing


Media Alternatives • Newspapers

– Good for mass coverage of a local market– Often not good for highly targeted audiences– Purchased in standard ad units (# columns x inches)

• Television– mass or targeted coverage (thanks to cable)– sight, sound and motion makes it best for shaping

attitudes– very expensive in most markets; also high production

costs– Prime time best for mass audiences; may be wasteful

for targeted audiences. Daytime, early fringe late fringe or local news may be best


Television DaypartsMountain Time Zone

• Early Morning – local and network, before 8 am• Daytime – 8 to 3pm - network • Early Fringe – local, before local news• Early News – local and network• Prime access – local, hour before prime• Prime Time – 7 to 10 pm network• Late News – local• Late fringe – network, after local news


Media Alternatives

• Direct Mail– targeted, geo-demographic coverage– high costs, unreliable mailing lists

• Radio– psychographic targeting via station formats– fast, cheap production– highly fragmented audience


Radio Daypartsmay vary by station

• Morning Drive 6 to 10

• Daytime 10 to 3

• Afternoon drive 3 to 7

• Nighttime 7 to midnight

• All night midnight to 6


Media Alternatives• Magazines

– product-related and psychographic targeting– quality image– long lead time, poor frequency

• Outdoor– mass coverage, great frequency– simple, short message

• Interactive– two-way communication! But many technical

problems still exist.



• Creating the Advertising Message

Product Features, Uses, and Benefits

Characteristics of the Target Audience

Advertising CampaignObjectives and Platform

Choice of Media

Form and Content of Advertising Message



• Creating the Advertising Message (cont’d)–Copy: the verbal portion of advertisements

• Includes headlines, subheadlines, body copy, and signature

–Copy guidelines• Identify a specific desire or problem

• Recommend the product as the best way to satisfy the desire or solve the problem

• State product benefits• Substantiate advertising claims• Ask the buyer to take action

Southwest



• Creating the Advertising Message Storyboard

• A mockup combining copy and visual material to show the sequence of major scenes in a commercial

PluggedPlugged“Hum”“Hum”

UnpluggedUnplugged“Buzz”“Buzz”

LeapLeap“Yeah”“Yeah”

UpsetUpset“Oops”“Oops”



• Creating the Advertising Message (cont’d)–Artwork

• An ad’s illustration and layout

–Illustrations• Photos, drawings, graphs, charts,

and tables used to spark audience interest

–Layout• The physical arrangement of an

ad’s illustration and copy


Developing an Advertising Campaign (cont’d)

• Executing the Campaign–Planning and coordination–Implementation

• Detailed scheduling of campaign phases• Evaluation and corrective action as necessary to

make the campaign more effective


Creative (copywriter’s)Pyramid

Slide 68

5. Action

4. Desire

3. Credibility

2. Interest

1. Attention

More info


Developing an Advertising Campaign (cont’d)

• Evaluating Advertising EffectivenessEvaluation Assessment

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

Recognition Test

A posttest in which individuals are shown the actual ad and asked if they recognize it

Unaided Recall Test

A posttest in which respondents identify ads they have recently seen but are given no recall clues

Aided Recall Test

A posttest that asks respondents to identify recent ads and provides clues to jog their memories


Public Relations• Public Relations

–Communications efforts used to create and maintain favorable relations between an organization and its stakeholders

–Focuses on enhancing the image of the total organization

• Public Relations Tools–Written materials

• Brochures • Newsletters • Company magazines

• News releases • Annual reports• Corporate identity materials • Speeches• Sponsored events


Public Relations (cont’d)• Publicity: a news story type of communication transmitted through a mass medium at no charge–News release Microsoft Capsoft Walmart

• A short piece of copy publicizing an event or a product

–Feature article• A manuscript of up to 3,000 words prepared for a

specific publication

–Captioned photograph LDS Church• A photo with a brief description of its contents

–Press conference• A meeting used to announce major news events

copyright 2000 by houghton mifflin company. all rights reserved. 18-1 advertising b341

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