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advertising
B341
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-1
The Nature and Types of
Advertising
• Advertising
–Paid nonpersonal communication about an
organization and its products transmitted to
a target audience through mass media
–Promotes goods, services, ideas, images,
issues, people, and anything else that
advertisers want to publicize or foster
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-2
General
Steps in
Developing
and
Implementing
an
Advertising
Campaign
FIGURE 18.1
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-3
Advertising
Pyramid
Action
Desire
Conviction
Comprehension
Awareness
Slide 48
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-4
The Nature and Types of
Type
Purpose
Advertising
Institutional
Promotes organizational images, ideas, and political issues
Advocacy
Promotes a company’s position on a public issue
Product
Promotes products’ uses, features, and benefits
Pioneer
Tries to stimulate demand for a product category rather than a
specific brand by informing potential buyers about the product
Competitive
Points out a brand’s special features, uses, and advantages
relative to competing brands
Comparative
Compares two or more brands on the basis of one or more
product characteristics
Reminder
Reminds consumers about an established brand’s uses,
characteristics, and benefits
Reinforcement
Assures users they chose the right brand and tells them how to
get the most satisfaction from it
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-5
Institutional Ads
• Ads that promote a companies overall
philosophy, or portray a positive image
for the firm without really attempting to
focus on any specific product or service.
– Church Family commercials
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-6
Comparative Ads
• Are legal in the U.S., but proper
substantiation required for any claims
made.
• Some countries prohibit comparative
ads.
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-7
Copy Platform
• Given to the ad agency creative team
• Provides:
– Objective Statement (what are we trying to
accomplish and with which target?)
– Positioning Statement
– Supporting evidence (back up the
positioning)
– Tone Statement – personality of the
campaign (emotional? humorous?
rationale? informational?)
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-8
A Big Idea
•
•
•
•
•
•
Conveys the positioning
Appeals to the target
Delivers on the objective
Breaks through (gets attention)
Is memorable
Has legs
More info
– Can be used in multiple mediums
– Can be executed in several different versions of
the same idea.
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-9
Big Idea
• Should be 3 or 4 sentence
• Should explain the content of the
promotions so I would have an idea
what individual ads would look like
• If there is a “clever twist” it should be
explained
• Can include a slogan or tag line
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-10
Objectives
• Create awareness
• Stimulate demand
• Encourage product
trial
• Identify prospects
• Retain loyal
customers
• Facilitate reseller
support
• Combat competitive
promotional efforts
• Reduce sale
fluctuations
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-11
Reach and Frequency
• Reach: % of target audience reached
at least once by your media plan
• Frequency: average # of times a target
audience member sees the ad in a fourweek period.
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-12
Reach vs. Frequency
• Often, you can’t afford to hit both real heavy.
• Maximize reach if you have a cutting edge,
breakthrough campaign, or are simply trying
to maintain loyalty.
– set a minimum frequency (3x for established
brand, 5x for new brand) and then maximize reach
• Maximize frequency if you have an action
objective, a complex message, or heavy
competitive advertising levels.
– Set a minimum reach – say 50%, and then
maximize frequency
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-13
Roman Meal Example
Target Women 50-65
• Focus on two months of seasonal increase in
bread usage Sept/Oct 1993
• Nationally , bought combination of daytime
and early morning
– Reach 69%, Frequency 9.8x per month
• Locally in key markets, added early news and
prime access
– Reach 80%, Frequency 4.0x per month
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-14
Roman Meal Example
Target Women 50-65
•
•
•
•
•
•
•
•
Today Show
Good Morning America
CBS This Morning
Price is Right 1
Price is Right 2
Young and Restless
As the World Turns
Bold and Beautiful
4.4 rating points
4.8 rating points
3.7 rating points
7.3 rating points
9.3 rating points
11.1 rating points
7.2 rating points
7.9 rating points
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-15
Developing an
Advertising Campaign
• Determining the Advertising Appropriation
Budgeting Approach
Methodology
Objective-and-Task
Determining advertising objectives and then
calculating the cost of all the tasks needed to
attain them
Percent-of-Sales
Multiplying the firm’s past and expected sales by
a standard percentage based on what the firm
has traditionally spent on advertising and the
industry average for advertising spending
Competition-Matching
Setting the advertising budget to match
competitors’ spending on advertising
Arbitrary
Setting the advertising budget at a level specified
by a high-level executive in the firm
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-16
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-17
Developing an
Advertising Campaign
• Developing the Media Plan
–Specifies media vehicles (e.g., magazines,
Example
radio, and television stations, and
newspapers) and the schedule for running
the advertisements
–Plan objectives focus on achieving the reach
and frequency that the budget will allow.
• Reach: the percentage of consumers in a target
market exposed to an advertisement in a
specified period
• Frequency: the number of times targeted
consumers are exposed to an advertisement in a
2000 by Houghton Mifflin Company. All rights reserved.
18-18
specifiedCopyright
period
Developing an
Advertising Campaign
• Developing the Media Plan (cont’d)
–Cost comparison indicator
• A means of comparing the cost of vehicles in a
specific medium in relation to the number of
people reached
• The indicator is stated as the cost for exposing
one thousand people (CPM) to an advertisement
in a medium.
–Media scheduling types
• Continuous
• Flighting
• Pulsing Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-19
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-20
Media Alternatives
• Newspapers
– Good for mass coverage of a local market
– Often not good for highly targeted audiences
– Purchased in standard ad units (# columns x inches)
• Television
– mass or targeted coverage (thanks to cable)
– sight, sound and motion makes it best for shaping
attitudes
– very expensive in most markets; also high production
costs
– Prime time best for mass audiences; may be wasteful
for targeted audiences. Daytime, early fringe late
fringe or local news may be best
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-21
Television Dayparts
Mountain Time Zone
•
•
•
•
•
•
•
•
Early Morning – local and network, before 8 am
Daytime – 8 to 3pm - network
Early Fringe – local, before local news
Early News – local and network
Prime access – local, hour before prime
Prime Time – 7 to 10 pm network
Late News – local
Late fringe – network, after local news
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-22
Media Alternatives
• Direct Mail
– targeted, geo-demographic coverage
– high costs, unreliable mailing lists
• Radio
– psychographic targeting via station formats
– fast, cheap production
– highly fragmented audience
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-23
Radio Dayparts
may vary by station
•
•
•
•
•
Morning Drive
Daytime
Afternoon drive
Nighttime
All night
6 to 10
10 to 3
3 to 7
7 to midnight
midnight to 6
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-24
Media Alternatives
• Magazines
– product-related and psychographic targeting
– quality image
– long lead time, poor frequency
• Outdoor
– mass coverage, great frequency
– simple, short message
• Interactive
– two-way communication! But many technical
problems still exist.
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-25
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-26
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-27
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-28
Developing an
Advertising Campaign
• Creating the Advertising Message
Product Features, Uses,
and Benefits
Characteristics of the
Target Audience
Advertising Campaign
Objectives and Platform
Form and
Content of
Advertising
Message
Choice of Media
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-29
Developing an
Advertising Campaign
• Creating the Advertising Message
(cont’d)
–Copy: the verbal portion of advertisements
• Includes headlines, subheadlines, body copy,
and signature
–Copy guidelines
• Identify a specific desire or problem
• Recommend the product as the
best way to satisfy the desire
or solve the problem
• State product benefits
• Substantiate advertising claims Southwest
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
• Ask the buyer
to take action
18-30
Developing an
Advertising Campaign
• Creating the Advertising Message
Storyboard
• A mockup combining copy and visual material to
show the sequence of major scenes in a
commercial
Plugged
“Hum”
Unplugged
“Buzz”
Leap
“Yeah”
Upset
“Oops”
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-31
Developing an
Advertising Campaign
• Creating the Advertising Message
(cont’d)
–Artwork
• An ad’s illustration and layout
–Illustrations
• Photos, drawings, graphs, charts,
and tables used to spark audience interest
–Layout
• The physical arrangement of an
ad’s illustration and copy
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-32
Developing an
Advertising Campaign
(cont’d)
• Executing the Campaign
–Planning and coordination
–Implementation
• Detailed scheduling of campaign phases
• Evaluation and corrective action as necessary to
make the
campaign more effective
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-33
Creative
(copywriter’s)Pyramid
More info
5. Action
4. Desire
3. Credibility
2. Interest
1. Attention
Slide 68
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-34
Developing an Advertising
Campaign (cont’d)
• Evaluating Advertising Effectiveness
Evaluation
Assessment
Pretest
Evaluation of ads performed before a campaign begins
Consumer Jury A panel of a product’s actual or potential buyers who
pretest ads
Posttest
Evaluation of advertising effectiveness after the
campaign
Recognition
Test
A posttest in which individuals are shown the actual ad
and asked if they recognize it
Unaided Recall
Test
A posttest in which respondents identify ads they have
recently seen but are given no recall clues
Aided Recall
Test
A posttest that asks respondents to identify recent ads
and provides clues to jog their memories
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
18-35
Public Relations
• Public Relations
–Communications efforts used to create and
maintain favorable relations between an
organization and its stakeholders
–Focuses on enhancing the image of the total
organization
• Public Relations Tools
–Written materials
• Brochures
• Newsletters
• Company
magazines
• News releases
• Annual reports
• Corporate identity materials
•
Speeches
Copyright 2000 by Houghton Mifflin Company. All rights reserved.
• Sponsored
events
18-36
Public Relations (cont’d)
• Publicity: a news story type of
communication transmitted through a
mass medium at no charge
–News release Microsoft Capsoft Walmart
• A short piece of copy publicizing an event or a
product
–Feature article
• A manuscript of up to 3,000 words prepared for a
specific publication
–Captioned photograph LDS Church
• A photo with a brief description of its contents
–Press conference
• A meetingCopyright
used
toHoughton
announce
2000 by
Mifflin Company. Allmajor
rights reserved.news events
18-37