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Advertising

Chapter 17

Lecture Slides

Solomon, Stuart, Carson, & Smith

Your name here

Course title/number

Date

©Copyright 2003 Pearson Education Canada Inc. 17-2

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Chapter Learning Objectives

When you have completed your study of this chapter, you should be able to:

• Tell what advertising is and describe the major types of advertising.

• Describe the major players in the advertising process.

• Tell how advertisers develop an advertising campaign.

• Discuss the challenges facing advertising.

• Explain how advertisers evaluate the effectiveness of the campaign.

• Describe the major advertising media and the important considerations in media planning.

©Copyright 2003 Pearson Education Canada Inc. 17-3

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Introduction to the Topic

• This is the second of three chapters on promotion, the previous chapter dealing with the strategy side of an integrated marketing communications program, while this chapter focuses solely on advertising.

• To refresh our memory, advertising is one component of an IMC, which is part of promotion in the marketing mix.

• The purpose of promotion is to communicate what the organization has to offer to its intended target market(s) and other interested stakeholders.

• Advertising just happens to be the most fun part of the program.

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The Nature of Advertising

• Advertising: non-personal communication paid for by and identified sponsor using mass media to persuade or inform.

• Advertising can come in many different forms and for different purposes.

• Product advertising: an advertising message that focuses on a specific good or service. The majority of advertising is done to promote specific products.

• Institutional advertising: an advertising message that promotes the activities, personality, or point of view of an organization or company.

• Such as this advertisement for Pfizer.

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The Nature of Advertising (continued)

• Advocacy advertising: a type of public service advertising provided by an organization that is seeking to influence public opinion on an issue because it has some stake in the outcome.

• Lobby groups such as the NRA would do this type of advertising.

• Public service advertisements: advertising run by the media without charge for not-for-profit organizations or to champion a particular cause.

• Such as this one for a camp for children with AIDS.

• Advertising agencies will often support these organizations by working on such advertising on a pro bono basis.

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Who Does Advertising?

• An advertising agency is a service firm that specializes in creating advertising for client companies. Agencies will vary in the amount and variety of services offered, such as:– Account management– Creative services– Marketing research– Media planning

• The value created by an agency is in translating the communications objectives of the client into activities that accomplish those objectives.

• Today’s full-service agencies prefer to call themselves communications services companies to reflect the variety of services offered.

©Copyright 2003 Pearson Education Canada Inc. 17-7

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Developing an Advertising Campaign

• Advertising campaign: a coordinated, comprehensive plan that carries out promotion objectives and results in a series of advertisements placed in media over a period of time.

• Creative strategy: the process that turns a concept into an advertisement.

• Advertising appeal: the central idea or theme of an advertising message.

• This is the most difficult part of creating advertising, which is coming up with ideas as to how to express a message.

• For example, what the heck is this?

©Copyright 2003 Pearson Education Canada Inc. 17-8

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Types of Advertising Appeals

• Unique selling proposition (USP): an advertising appeal that focuses on one clear reason why a particular product is superior to any others.

• Comparative advertising between competing products. • Demonstration showing the product being used.

• Testimonial using a credible source to tell of its benefits.

• Slice-of-life showing how the products fits everyday life.

• Lifestyle showing the expressive or symbolic qualities of the product.

• Fear appeals to scare the viewer into changing their attitude.

• Sex appeals to attract attention and promote a product.

• Humorous appeals to break through the clutter and get noticed.

©Copyright 2003 Pearson Education Canada Inc. 17-9

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Developing an Advertising Campaign

• Pretesting: a research method that seeks to minimize mistakes by getting consumer reactions to advertising messages before they appear in the media.

• Copy testing: a marketing research method that seeks to measure the effectiveness of advertisements by determining whether consumers are receiving, comprehending, and responding to the advertisement accordingly.

• Copy testing can be used for:

– concept testing

– test commercials

– finished testing

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Choosing a Media

• Media planning: the process of developing media objectives, strategies, and tactics for use in an advertising campaign. The goal is to reach the target audience in the most effective manner.

• Aperture: the best place and time to reach a person in the target market group. This requires an in-depth knowledge of the segmentation strategy being used and the characteristics of the target market(s).

• Computer media: communications media that transmit information through the Internet or via e-mail messages.

• Out-of-home media: communications media that reach people in public places.

©Copyright 2003 Pearson Education Canada Inc. 17-11

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Pros and Cons of Selected Media

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Media Scheduling

• Media schedule: the plan that specifies the exact media to use and when.

• Advertising exposure: the degree to which the target market will see an advertising message placed in a specific vehicle.

Figure 17.1

• 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 that will be exposed to the media vehicle.

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Media Scheduling (continued)

• Frequency: the number of times a person in the target group will be exposed to the message.

• Gross Rating Points (GRP’s): a measure used for comparing the effectiveness of different media vehicles: average reach times frequency.

Figure 17.1

• Cost per thousand (CPM): a measure used to compare the relative cost effectiveness of different media vehicles that have different exposure rates: the cost to deliver a message to 1,000 people or homes.

©Copyright 2003 Pearson Education Canada Inc. 17-14

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Evaluating Advertising

• Post-testing: research conducted on consumers’ responses to actual advertising messages they have seen or heard.

• Unaided recall: a research technique conducted by telephone survey or personal interview that asks how much of an advertisement a person remembers during a specified period of time.

• Aided recall: a research technique that uses clues to prompt answers from people about advertisements they might have seen.

• Attitudinal measures: a research technique that probes a consumer’s beliefs or feelings about a product before and after being exposed to messages about it.

©Copyright 2003 Pearson Education Canada Inc. 17-15

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Challenges Facing Advertising

• The advertising industry faces a number of challenges in today’s marketing environment:

• Erosion of brand loyalty due to emphasis on price.

• Effect of technology putting more power in the hands of the consumer.

• Greater emphasis on point of purchase factors when making purchase decisions.

• Competition from non-traditional sources using special effects and technology.

• Cluttered advertising environment makes it difficult to get noticed.

• Cynical consumers are turned off by advertising and are tuning out.

©Copyright 2003 Pearson Education Canada Inc. 17-16

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Famous Last Words…

• Advertising is a big part of our daily lives, whether we choose to notice it or not.

• Advertising has tremendous power to communicate to the masses, if we could just figure out who those masses are!