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Advertising Programs Effects of Advertising Programs Stages Cognitive stage Affective stage Behavioural stage Specific Effects Exposure to message Message recall Awareness of product Knowledge of product attributes and uses Willingness to seek more information Interest in product Favourable evaluation of product or brand attributes Intention to try or buy Product trial Product purchase ADVERTISING Paid messages designed to inform or persuade buyers or users about a product, service, belief or action. Developing Advertising Programs The process of setting advertising objectives Procedures for developing advertising budgets Considerations involved in devising a message and a media plan Approaches for evaluating the effectiveness of a program Basic Elements of an Advertising Programs Marketing Strategy Advertising Objectives Tentative Budget Message Design Media Schedule Revisions Implement Evaluation Types of Advertising Objectives Awareness Reminder to use Changing attitudes about the use of the product form Changing perceptions about the importance of brand attributes Changing beliefs about brands Attitude reinforcement Corporate and product-line image building Obtaining a direct response The Advertising Budgeting Process Establish a baseline budget Based on the advertising objectives, estimate the message design and media costs required If time and resources permit, run experiments to obtain a rough estimate of the impact of the proposed program Revise the budget (or objectives) as necessary Developing a Tentative Advertising Budget Prior Year Budget Percentage of Sales Adjustment Product Objective Profitability Analysis Competitor’s Budgets Productivity Judgments Baseline Budget Advertising Objective Message Design Cost Results of Experiments Changes in Other Programs Media Cost Tentative Budget Developing the Media Schedule Advertising Objectives Target Audience Frequency and Reach Criteria Message Design Potential Media Vehicles Audience Size Size, Length and Position Tentative Budget Duplication Among Vehicles Media Scheduling Model Compare Alternative Schedules Review Budget Cost per Insertion Elements of Message Design Copy-Claim Alternatives: Claims that describe the physical attributes of the product Claims that describe the functional benefits that can be obtained from the product Claims that characterize the product in terms of the types of people who use it Elements of Message Design Execution Style: Humour Symbolic Associations Testimonials Product demonstrations “Slice of Life” Case histories Documentation of the product’s attributes Comparative advertising How to Evaluate Advertising Programs Specific Advertisements: Recognition Tests Estimate the percentage of people claiming to have read a magazine who recognize an ad when it is shown to them. Recall Tests Estimate the percentage of people claiming to have read a magazine who can recall an ad and its contents. Opinion Tests Potential audience members are asked to rank alternative advertisements as most interesting, most believable, best liked, etc. Theatre Tests Theatre audience is asked for brand preferences before and after an ad is shown in context of a TV show. How to Evaluate Advertising Programs Specific Advertising Objectives: Awareness Potential; buyers are asked to indicate the brands that come to mind in a product category. A message used in an ad campaign is given, and buyers are asked to identify the brand that was advertised using that message. Attitude Potential buyers are asked to rate individual or competing brands on determinant attributes, benefits, other characterizations using rating scales. How to Evaluate Advertising Programs Evaluating Motivational Impact: Intentions to Buy Potential buyers are indicate likelihood they will buy a brand (on a scale from “definitely will not” to “definitely will”. Market Test Sales changes in different markets are monitored to compare effects of different messages, budget levels, etc.