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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