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1 CHAPTER 16 BE CREATIVE WITH ADVERTISING 16-1 What Is Advertising? 16-2 Advertising Planning 16-3 Advertising Execution and Evaluation Chapter 16 MARKETING © 2009 South-Western, Cengage Learning 2 ©WINTERFRESH POLAR ICE Focus Questions: Advertising is capable of communicating messages in many different ways, sometimes several messages at once. In this Winterfresh ad, the main message is communicated visually. What is the main message? How does it make you feel? Does it make you want to try Winterfresh gum? Chapter 16 MARKETING © 2009 South-Western, Cengage Learning 3 16-1 WHAT IS ADVERTISING? GOALS Define product advertising and brand advertising and distinguish between the two types. Describe the major roles at the an advertising agency. Chapter 16 MARKETING © 2009 South-Western, Cengage Learning 4 Two Approaches to Advertising Product advertising Brand advertising Chapter 16 MARKETING © 2009 South-Western, Cengage Learning 5 The Advertising Agency Specializes in creating advertising Major roles at the an advertising agency Account executive Account planner Media planner Art director Copywriter Creative director Producer Chapter 16 MARKETING © 2009 South-Western, Cengage Learning 6 16-2 ADVERTISING PLANNING GOALS Describe the process of setting objectives, determining the budget, and developing the creative strategy. Describe the different types of media and the factors that must be considered when selecting which media to use. Chapter 16 MARKETING © 2009 South-Western, Cengage Learning 7 The Planning Process Set objectives Determine the budget What you can afford Percentage of sales Competition matching Objective and task Develop the creative strategy Chapter 16 MARKETING © 2009 South-Western, Cengage Learning 8 Advertising Objective Elements Sales Objective Communication Target Market Chapter 16 Plan for Seaside Resorts Increase reserved summer rentals by 10% by February 15 Make reservations by February 15 and save $100 off the weekly rate Families living in California who spend one week or more at the beach every year MARKETING © 2009 South-Western, Cengage Learning 9 Select the Media Cost Reach Frequency Lead time Creative, brand, and corporate fit Chapter 16 MARKETING © 2009 South-Western, Cengage Learning 10 Advantages and Disadvantages of Major Advertising Media Television Radio Chapter 16 Reaches large audiences Low cost per viewer Has emotional impact Highly segmented markets Highly mobile Relatively low cost Short lead time Highly segmented markets MARKETING High total cost Long lead time Strong potential for interference from other sources Message limited to audio Strong potential for interference from other sources © 2009 South-Western, Cengage Learning 11 Advantages and Disadvantages of Major Advertising Media Outdoor Low cost High visibility Short lead time Direct Mail Highly segmented Easy to measure effectiveness Stimulates action Hidden from competition Chapter 16 MARKETING Increasingly regulated Message length is limited Strong potential for interference from other sources Often considered junk mail Expensive © 2009 South-Western, Cengage Learning 12 Advantages and Disadvantages of Major Advertising Media Magazines Newspapers Chapter 16 Long life span Can carry response vehicles (coupons, response cards) High pass-along rate Highly segmented Short lead time Large circulation Can carry response vehicles (coupons) Inexpensive MARKETING High cost Long lead time Lower print quality Short life Limited segmentation High clutter (competing ads) © 2009 South-Western, Cengage Learning 13 Advantages and Disadvantages of Major Advertising Media Internet Chapter 16 Highly targeted Instantly measurable Built-in response vehicles Interactive MARKETING Limited audience High clutter (competing ads) Security and privacy concerns © 2009 South-Western, Cengage Learning 14 Questions to Consider When Selecting Media Cost What is the total cost of the medium? What is the cost per viewer? Does the cost fit into the advertising budget? Is it the most effective use of advertising dollars? Reach What is the overall circulation or viewership? Will it reach the target audience? Is there a strong pass-along rate? Frequency How often will the target audience see the advertising message? How many viewings does it take for the message to “stick”? After how many viewings does “wear-out” occur? Chapter 16 MARKETING © 2009 South-Western, Cengage Learning 15 Questions to Consider When Selecting Media Lead Time How long before running the advertising does the medium outlet require the ad materials? How flexible is this medium? Can the ad materials be ready by the medium’s deadline? Creative, Brand, and Corporate Fit Does the medium fit the message? Is the medium a good fit for the brand? Does the medium fit the company philosophy? Chapter 16 MARKETING © 2009 South-Western, Cengage Learning 16 16-3 ADVERTISING EXECUTION AND EVALUATION GOALS Name common creative advertising formats. Explain what happens during the production phase of the advertising process. Differentiate between quantitative and qualitative research. Name the four types of advertising regulation. Chapter 16 MARKETING © 2009 South-Western, Cengage Learning 17 Creative Development Creative Formats Musical Dramatization Testimonial Comedy Image advertising Product demonstration Competitive The creative concepts Chapter 16 MARKETING © 2009 South-Western, Cengage Learning 18 Production Strategic Brief Creative Development Client Presentation Creative Research Production Client Presentation Advertising Runs Chapter 16 MARKETING © 2009 South-Western, Cengage Learning 19 Gauging Advertising Effectiveness Quantitative research Qualitative research Chapter 16 MARKETING © 2009 South-Western, Cengage Learning 20 Regulating Advertising Government regulation Network regulation Regulatory board Competitive regulation Corrective action Cease-and-desist order corrective ads fine Chapter 16 MARKETING © 2009 South-Western, Cengage Learning