Download Chapter 16 - Advertising

Chapter Sixteen
Advertising in an e-commerce
World
Objectives
Understand purpose of advertising
Differentiate primary and selective demand advertising
Discuss advertising development stages
Understand role of communications objectives in
advertising process
Discuss advertising over the the product life cycle
Survey advertising creative platforms
Compare advantages and disadvantages of various
advertising media
Explore advertising effectiveness measures
Discuss ethical issues of advertising
Product Advertising
Two types:
Direct-action advertisement:
stimulates immediate purchase
Indirect-action advertisement:
stimulates sales over the long run
Institutional Advertising
Objectives:
Promote organizational
image
Stimulate product
category demand
Build industry goodwill
Advertising Planning and
Development
Marketing
strategy
Specific advertising
objectives
Creative
strategy
Media
selection
Advertising
production
Advertising execution
and evaluation
Advertising
budget
Communication Goals
Four broad communication goals:
Generate attention
Be understood
Be believed
Be remembered
Advertising Objectives and
Product Life Cycle
40
SALES
35
30
25
20
15
10
5
0
Preintroduction
Screen
concepts
Introduction
Primary
demand:
Inform
Growth
Maturity
Decline
Extensive Reminder &
advertising emotional
spending: ads &
Persuade
promo:
Remind
Minimal
if any
Building Demand
Primary demand:
Selective demand:
Product class as a
whole.
Informational
Stimulate demand for a
brand
Psychological or
emotional dimensions
Consumption situations
The Appeal:
What to Say
What product offers
Why customer should buy
Sex appeal
Lifestyle compatible
Problem solving
Themes
Positioning
Execution:
How to Say It
Spokesperson
Emotional tone
Situation
Creative platform
How to Say It:
Execution of the appeal
 Story line
 Product uses
 Problem solutions
 Slice of life
 Demonstration
 Comparative advertising
 Testimonial
 Lifestyle
 Still life
 Association
 Montage
 Jingle
Effective Advertising
Copy Appeal
Visual Appeal
Hierarchy of Effects
I’LL BUY IT!
Action
Desire
Interest
Attention
Mass Media
Broadcast
media
Print
media
In-store
media
Other:
Transit
Interactive Media
Company Web
site
Rich
media
Banner
Ads
Direct Marketing
Letters,
bill inserts
Fax
advertisements
Phone
E-mail
Hello, Pat.
You’ve got mail!
Print Media
Advantages/Disadvantages
Newspapers:
+ Geo. selectivity, flexibility,
editorial support
- Lack of permanence, poor
quality of print, limited
demographics
Magazines:
All above plus:
+ Broad selectivity, long-life
ad, picture quality
- Long lead time, color
expensive
Broadcast Media
Advantages/Disadvantages
Television:
+ Show & tell, selectivity,
penetration
- Expensive, perishable,
clutter, videotape skipping
Radio:
+ Selectivity, flexibility,
inexpensive
- Fleeting, clutter, no visual,
background media
Direct Media
Advantages/Disadvantages
Internet/Interactive:
+ Measurement, lengthy copy,
interactive, inexpensive
- No universal access, unknown
audience
Direct mail/Catalog:
+ Selective,measurement,
lengthy copy possible, reader
governs exposure
- Expensive, no editorial
support, limited interest
Direct Media
Advantages/Disadvantages
Point-of-Purchase:
+ Impulse buying, “selling”,
unifies product & ad
- Placement difficult to control,
clutter, limited creative &
customer use
Outdoor ads
+ High reach & frequency,
selectivity, impact, inexpensive
- Brevity, image, location choice
Media Considerations
Schedule
Reach
Frequency
Measuring Advertising
Effectiveness
Developing Messages &
Pretesting:
Focus groups
Quantitative studies
Posttesting:
Recognition & recall tests
Attitude change
Measuring inquiries
Ethical Issues in
Advertising
Deceptive &
misleading practices
Misleading
Bait and switch
Puffery
Public standards
What products
allowable?
Stereotyping
Solicitation
Promotions aimed at
children
Review
Understand purpose of advertising
Differentiate primary and selective demand advertising
Discuss advertising development stages
Understand role of communications objectives in
advertising process
Discuss advertising over the the product life cycle
Survey advertising creative platforms
Compare advantages and disadvantages of various
advertising media
Explore advertising effectiveness measures
Discuss ethical issues of advertising