Download 17-8 Marketing: Real People, Real Decisions Types of Advertising

Marketing: Real People, Real Decisions
Advertising
Chapter 17
Lecture Slides
Solomon, Stuart,
Carson, & Smith
Your name here
Course title/number
Date
Marketing: Real People, Real Decisions
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.
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Marketing: Real People, Real Decisions
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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Marketing: Real People, Real Decisions
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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Marketing: Real People, Real Decisions
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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Marketing: Real People, Real Decisions
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.
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Marketing: Real People, Real Decisions
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?
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Marketing: Real People, Real Decisions
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.
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Marketing: Real People, Real Decisions
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
©Copyright 2003 Pearson Education Canada Inc.
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Marketing: Real People, Real Decisions
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.
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Marketing: Real People, Real Decisions
Pros and Cons of Selected Media
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Marketing: Real People, Real Decisions
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.
• 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.
Figure 17.1
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Marketing: Real People, Real Decisions
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.
• 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.
Figure 17.1
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Marketing: Real People, Real Decisions
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.
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Marketing: Real People, Real Decisions
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.
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Marketing: Real People, Real Decisions
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!
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