Download IAI PROMOTION 2 - Advertising [Mode de compatibilité]

Mass selling
Communicating with large numbers of potential customers
Master 1 International Business Engineer
“Non”-personal selling
Used when the target market is large and dispersed
Communication / promotion
Advertising is the main form of mass selling
Session 2 : Advertising
any paid form of nonpersonal communication
eg. Techniques include billboard ads and TV commercials
G. de Lanauze
Publicity is the generation of awareness about a product beyond
regular advertising methods.
Usually less costly than advertising because sometimes the
message is spread for free by a newspaper article or TV story.
Communication G. de Lanauze
Advertising: a definition
Advertising
Advertising is the nonpersonal communication of
information usually paid for and usually persuasive
in nature about products, services or ideas by
identified sponsors through the various media.
Bovee/Arens, 1992
Communication G. de Lanauze
BuraphaMaster 1 IAI - 2015 / 2016
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Advertising program development
Modern ad spending
tops $231 billion
in U.S. annually,
$500 billion
worldwide.
Communication
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G. de Lanauze
BuraphaMaster 1 IAI - 2015 / 2016
Reaches masses of geographically dispersed buyers at a low
cost per exposure
Mission : what are our advertising objectives ?
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•
Enables the seller to repeat a message often
Money : How much can we spend?
Can build up long-term image for a product
Message : What message should we send?
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Signage in ancient times offers evidence of early
advertising.
The Nature of Advertising
Advertising is any paid form of nonpersonal presentation and promotion
of ideas, goods, or services by an identified sponsor
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Media : Which media should we use?
Can trigger quick sales
Measurement: How should we evaluate the results?
Consumers tend to view advertised products as more legitimate
Communication G. de Lanauze
BuraphaMaster 1 IAI - 2015 / 2016
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Major advertising decisions
The Ad Agency’s Role
Objectives setting
•Communication objectives
•Sales objectives
Knowledge of the target
(socio-demographics,
purchases)
Motivations, information level
and need for information
Verification of the
coherence with the
marketing mix
Budget decisions
•Percentage of sales/ affordable approach
•Competitive parity pproach
Reasons for using an ad agency
Highly skilled specialists
Specialization in a particular industry
Objective viewpoint of the market
Broad range of experience
Agency selection
National (local) versus international agency
Communication’s
available modes
Message decisions
(creative strategy)
Media decisions
Control of efficiency
Control of the choices
coherence
Researchers
Artists
•Reach, Frequency, impact,
•Media types ; media planning
•Message strategy
•Message execution
Writers
Advertising evaluation
•Communication impact
•Pretesting and testsing
•Sales impacts
Photographe
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Communication G. de Lanauze
Decentralized Advertising System
Communication G. dersLanauze
Media Analysts
Other Skills
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Agency Compensation Plans
Corporate
Commissions
Production
Finance
Human
Resources
R&D
Marketing
Around 15% of airtime fees
Markup Charges
Sales
Product
Management
Brand
Manager
Advertising
Dept
Ad agency
Brand
Manager
Communication G. de Lanauze
Production cost + fixed percent
Marketing
services
Fee Systems
Hourly rates or by project
Marketing
Research
Incentive Systems
Tightly-specified objectives
Sales promotion
Package design
Ad agency
BuraphaMaster 1 IAI
Merchandising
- 2015 / 2016
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BuraphaMaster 1 IAI - 2015 / 2016
Communication G. de Lanauze
Message creation: the creative strategy
Message content
Express product value
Good advertising creative strategy translates the brand’s
positioning statement into a persuasive and memorable
message. A great creative will provide lasting impact even if
advertising budgets are constrained.
“ How you say it is as critical as what you say”
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•Functional value
•Social value
•Psychological value
•Economic value
•Whatever else the
consumer thinks is
important
Communication G. de Lanauze
Three ways to
differentiate the product
Perceptible
Actual differences
Easily seen
Imperceptible
Actual differences
Can’t be seen
Induced
No actual differences
Parity products
BuraphaMaster 1 IAI - 2015 / 2016
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Two basic ways of presenting a sales message
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•
Intellectually/ Rationally
Usually about the product’s function
Usually copy heavy and line drawings
Emotionally
appeal to psychological, social or symbolic needs.
Usually not about the product’s function
Usually copy is light with high connotative content
Uses photographs or video
Psychological appeals
•
•
•
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•
Self-preservation
Sex
Greed
Self-esteem
Personal enjoyment
•
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•
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Fear
Humor
Fantasy
Imitation
Altruism
•
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Constructiveness
Destructiveness
Curiosity
Shift towards emotional execution strategy in the later part of the
product lifecycle
Intense competition and proliferation of substitutable products
(Michelin)
Critical to increase “Product involvement”
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Communication G. de Lanauze
Communication G. de Lanauze
Creative Execution Styles
•Slice of Life
•Lifestyle
•Fantasy
•Mood or Image
•Testimonial Evidence or
Endorsement
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Endorsement
Celebrity endorsers may
be movie stars,
politicians, sports stars,
or other public
personalities
•Musical
•Personality Symbol
•Technical Expertise
•Scientific Evidence
•Comparative
Testimonials feature
ordinary people who talk
about their product
experiences
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Communication G. de Lanauze
Message generation and creative development
A good ad focuses on one or two core selling propositions
Marketing brief
Creative brief
(3)
Roughs creating
Project choice
(1)
and
presentation
to the customer
Message
preparing
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Complaints about advertising
•
It perpetuates stereotypes
• Absolutely true
• It has to
•
Makes people buy things they don’t need
• Not true
• Advertising can’t make anybody do anything
Validation of
positioning statement
Creative development
BuraphaMaster 1 IAI - 2015 / 2016
Execution
(2)
Pretest
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CAMPAIGN
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Media Planning and Strategy :
Basic Terms
Media planning: The series of decisions involved in delivering the
message to the target audience.
Media plan: The actual document detailing media planning decisions.
Media planning strategy
Media objectives: Objectives of media plan.
Media strategies: action plans to reach objectives.
Medium: channel such as print, broadcast.
Media vehicle: Specific carrier in a media category (television,
magazines).
Communication G. de Lanauze
Media Versus Vehicles
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Selecting Advertising Media
Media are the general communication methods that carry
advertising messages—television, magazines, newspapers,
and so on.
Advertising media: Vehicles through which advertising
messages are delivered to their intended audiences
Vehicles are the specific broadcast programs or print choices in
which advertisements are placed.
For example, television is the media, and American Idol is the
vehicle.
Steps in advertising media selection:
• Determining reach, frequency, and impact
• Choosing among major media types
• Selecting specific media vehicles
• Choosing media timing
Each medium and vehicle has a unique set of characteristics and
virtues.
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The medias strategy: choice of the media and
media-planning
Media-planning consists in choosing the media in which the ads will be
seen (number of insertions, period of appearance)
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Developing the Media Plan
Situation
Analysis
Marketing
Strategy Plan
Practical criterions:
• Accessibility of the medias, reservation time, entry ticket,…
Creative
Strategy Plan
Setting Media Objectives
Determining Media Strategy
Quantitative efficiency criterions:
• Power, target covering, repetition power, fit with the target, …
Selecting Broad Media Classes
Qualitative criterions:
• Ability to increase message value, communication quality (colors,
music, movement, …), impact on distribution, …
Selecting Media Within Class
Media Use Decision
— Broadcast
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Communication G. de Lanauze
Media Use Decision
— Print
Media Use Decision
— Other Media
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Creative / media synergies
Specifying Media Objectives
Media planners for Absolut
vodka work with creatives
to design ads targeted to
specific audiences.
The ad at left appears in
theater playbills.
Communication G. de Lanauze
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BuraphaMaster 1 IAI - 2015 / 2016
Deciding on media
1.
What proportion of the population should be reached with advertising
message during specified period (reach)
2.
How frequently should audience be exposed to message during this
period (frequency)
3.
How much total advertising is needed to accomplish reach and
frequency objectives (weight)
4.
How should the advertising budget be allocated over time (continuity)
5.
How close to the time of purchase should the target audience be
exposed to the advertising message (recency)
6.
What is the most economically justifiable way to accomplish objectives
(cost)
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Define the target market
Media selection is finding the most cost-effective media to deliver
the desired number of exposures to the target audience:
Reach: the percentage of people in the target market who are exposed
to the ad campaign during the defined time duration
Eg; 70% of the target market during the first three months of the
campaign
Reach:
number of persons exposed at least once
Total
number of
exposures
(E)
E=RxF
Frequency
Average number of exposure for one person
Impact
Qualitative value of an exposure
Frequency: A measure of how many times an average individual in the
target market who have been reached .
Weighted
number of
exposures
(WE)
WE=RxFxI
Advertising Exposure
Gross Rating Points = 70(Reach) 4(Frequency) = 280 GRP’s
1GRP = 1 exposure to 1% of the audience.
Trade-off between reach and frequency
Qualitative Measures : Impact: qualitative aspect of the medium
Communication G. de Lanauze
BuraphaMaster 1 IAI - 2015 / 2016
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Weight: Gross Rating Points
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The Concept of Effective Reach
Gross rating points, or GRPs, are an indicator of the amount of
gross weight that a particular advertising schedule is capable
of delivering
Effective reach is based on the idea that an advertising schedule
is effective only if it does not reach members of target
audience too few or too many times
GRPs=Reach(R) X Frequency(F)
Target Rating Points (TRPs): Adjust a vehicle’s rating to reflect
just those individuals who match the advertiser’s target
audience
Communication G. de Lanauze
BuraphaMaster 1 IAI - 2015 / 2016
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BuraphaMaster 1 IAI - 2015 / 2016
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Cost considerations
Continuity
How advertising is allocated during the course of an advertising
campaign: how should the media budget be distributed?
Cost per Thousand (CPM)
Continuous advertising schedule: an equal number of ad dollars
are invested throughout the campaign
Target Market (TM)
CPM=
Cost of ad
# of contacts (expressed in thousands)
Pulsing: some advertising is used during every period of the
campaign, but the amount of advertising varies from period to
period.
Flighting: the advertiser varies expenditures throughout the
campaign and allocates zero expenditures in some months.
CPM-TM=
Cost of ad
# of TM contacts
(expressed in thousands)
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Communication G. de Lanauze
Communication G. de Lanauze
Three Scheduling Methods
Magazine Audience Measurement
Circulation: measure of how many copies of an issue are sent to
market including subscriptions and distributor sales
Continuity
Readership: estimate of the number of people actually reading
an issue of a magazine; more than one person typically reads
the same copy of a magazine
Flighting
Pulsing
Jan
Feb
Mar
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These number are broken down by reader characteristics to
more accurately define a target audience, ex. SRDS handout
Apr
Communication G. de Lanauze
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
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Communication G. de Lanauze
Profiles of Major Media Types
Choosing Among Major Media Types
Medium
Choose media that effectively and efficiently present the
message to customers
Consider each medium’s impact, effectiveness, and cost
• Print
• Broadcast
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Advantages
Television
Good mass-marketing coverage; low cost per exposure;
combines sight, sound, and motion; appealing to the senses
Newspapers
Flexibility; timeliness; good local market coverage; broad
acceptability; high believability
Internet
High selectivity; low cost; immediacy; interactive capabilities
Direct mail
High audience selectivity; flexibility; no ad competition within
the same medium; allows personalization
Magazines
High geographic and demographic selectivity; credibility and
prestige; high-quality reproduction; long life and good passalong readership
Radio
Good local acceptance; high geographic and demographic
selectivity; low cost
Outdoor
Flexibility; high repeat exposure; low cost; low message
competition; good positional selectivity
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BuraphaMaster 1 IAI - 2015 / 2016
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Selecting Specific Media Vehicles
Profiles of Major Media Types
Medium
Choose the best media vehicles—specific media within each
general media type
Compute the cost per 1,000 persons reached by a vehicle
Limitations
Television
High absolute costs; high clutter; fleeting exposure; less
audience selectivity
Newspapers
Short life; poor reproduction quality; small pass-along
audience
Internet
Potentially low impact; the audience controls exposure
Direct mail
Relatively high cost per exposure; “junk mail” image
Magazines
Long ad purchase lead time; high cost; no guarantee of
position
Radio
Audio only; fleeting exposure; low attention (“the half-heard”
medium); fragmented audiences
Outdoor
Little audience selectivity; creative limitations
Consider the costs of producing ads for different media
Balance media costs against several media effectiveness factors
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BuraphaMaster 1 IAI - 2015 / 2016
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Communication G. de Lanauze
Television Pros and Cons
Advantages
BuraphaMaster 1 IAI - 2015 / 2016
Radio Pros and Cons
Disadvantages
Advantages
Disadvantages
Mass Coverage
Low Selectivity
Local Coverage
Audio Only
High Reach
Short Message Life
Low Cost
Clutter
Impact of Sight, Sound
and Motion
High Absolute Cost
High Frequency
Low Attention Getting
High Prestige
High Production Cost
Flexible
Fleeting Message
Low Cost Per Exposure
Clutter
Low Production Cost
Attention Getting
Communication G. de Lanauze
Favorable Image
Well-segmented Audience
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Magazine Pros and Cons
Advantages
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Newspaper Pros and Cons
Advantages
Disadvantages
Disadvantages
Segmentation Potential
Long Lead Time for
Ad Placement
High Coverage
Short Life
Quality Reproduction
Visual Only
Low Cost
Clutter
High Information Content
Lack of Flexibility
Short Lead Time for Placing
Ads
Low Attention Getting
Longevity
Ads Can Be Placed in Interest
Sections
Poor Reproduction Quality
Multiple Readers
Timely (Current Ads)
Selective Reader Exposure
Reader Controls Exposure
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Communication G. de Lanauze
Can Be Used for Coupons
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Outdoor Pros and Cons
Advantages
A never ending list of possibilities
Disadvantages
Location Specific
Sort Exposure Time
High Repetition
Short Ads
Easily Noticed
Poor Image
Local Restrictions
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Internet Pros and Cons
Disadvantages
User Selects Product
Information
Limited Creative Capabilities
User Attention and
Involvement
Websnarl (Crowded Access)
Interactive Relationship
Technology Limitations
Direct Selling Potential
Few Valid Measurement
Techniques
Flexible Message Platform
Limited Reach
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Choice of the medias at international level
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Advantages
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•
Few really international media exist (except some very specific TV
channels (MTV), radios (BBC news), Magazines (National Geographic)
Internet is a good international medium
The weight and diffusion of the different media may differ a lot
between countries
Media characteristics
in selected countries:
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Control of the communication actions
Pre-testing:
Analysis of the various elements of the message and its impact according to
the company’s goals
Methods (surveys: folder test, preview,…)
Post-testing:
Measure of the campaign efficiency : evolution of the notoriety and
memorization (top of mind, spontaneous, assisted). Campaign evaluation
Panels and barometers:
Longitudinal surveys of the ad’s indicators. Audience (Médiamétrie), IPSOS
scores (recognition, attribution, agreement), …
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