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Advertising Management
Advertising Management Process
Advertising Message Strategies
Managing Advertising
Formulating Advertising Strategy
•Setting Objectives
•Budgeting
•Creating Ad Messages
•Selecting Ad Media and Vehicles
Implementing Strategy
•Dealing with the tactical activities e.g. the time
and programmes to air the advertisement
Assessing Effectiveness
• Determining the measurements and then
whether objectives are achieved
Message Strategies
Rational Appeals
e.g. Unique Selling Preposition
Comparative Ads
Advertising
Appeals
Endorsers
Expert
Celebrity
Emotional Appeals
e.g. Fear
Eroticism
Pelsmacker et al. (2007), Chapter 7
Rational Appeals
• Unique Selling Proposition
– Identify an important
difference that makes a brand
unique and then develop an
ad claim that competitors
either cannot make or have
chosen not to make
• Comparative Ad
– A direct comparative ad
explicitly names the
comparison brand and claims
it is inferior to the advertised
brand with a specific attribute
Emotional Appeals
• Fear Appeal
– Fear appeal ads
identify the negative
consequences of
either not using the
advertised brand or
engaging in unsafe
behaviour
Risk Taxonomy
Financial Risk
The consumer loses money, either because the product will
not work at all (or presumably must be replaced), because it
costs a lot to keep it in good condition, or because an
equivalent or better product is available at lower cost
Performance
Risk
There is something wrong with the product or it does not work
properly
Physical Risk
The product is unsafe, that is, harmful to one’s health
Psychological
Risk
The product disagrees with the buyer’s self-image or selfconcept
Social Risk
The product adversely affects the way others think about the
buyer
Time Risk
The product wastes buyer’s time and causes inconvenience
because it must be adjusted, repaired, or replaced
Jacoby and Kaplan (1972), “Components of Perceived Risk in Product Purchase: A
Cross-Validation ,” Journal of Applied Psychology, 59(3), pp. 287-291
Emotional Appeals
• Fear Appeal
– The more fear in the ads,
the more likely the
audiences will be
persuaded but only to a
certain extent.
– The greater the relevance.
The lower the fear needed
to activate a response
LaTour et al. (1993), "To Shock or Energize through Fear Arousal in Print Advertising,"
American Business Review, 11 (2), 1-6; Janis, I.L. (1967). “Effects of Fear Arousal on
Attitude Change: Recent Developments in Theory and Experimental Research,”
Advances in Experimental Social Psychology, 4, 166-224.
Emotional Appeals
• Erotic Appeal
– Sexual ad acts to
attract and hold
attention for longer, to
enhance message
recall, and to evoke
emotional responses
Richmond and Hartman (1982), “Sex Appeal in Advertising," Journal of Advertising
Research , 22 (5), pp. 53-61; LaTour et al. (1990). “Female Nudity, Arousal, and Ad
Response: An Experimental Investigation,” Journal of Advertising, 19(4), pp. 59-63
Emotional Appeals
• Erotic Appeal
– Sex sells but it can
reduce brand and
message recall, it works
more significantly for
men, and it works
mostly with functional
and romantic products
Smith et al. (1995), “Understanding Responses to Sex Appeals in Advertising: An
Individual Difference Approach," Advances in Consumer Research, 22, pp. 735-739
Endorsers
• Expert / Consumer
Endorsements
– positive expert and
consumer
endorsements both
enhance audiences'
attitudes toward the
endorsed product
Wang (2005), “The Effects of Expert and Consumer Endorsements on Audience
Response,” Journal of Advertising Research, 45(4), pp. 402-412
Endorsers
• Celebrity Endorsement
– stock pries can rise when
companies announce
celebrity endorsement
contracts and to fall when
negative publicity reaches
the media about a celebrity
who endorses one of the
company’s brands.
Agrawal and Kamakura (1995), “The Economic Worth of Celebrity Endorsers: An Event
Study Analysis,” Journal of Marketing, 59(7), pp. 56-62;Therese et al. (2001), “When Bad
things Happen to the Endorsers of Good Products,” Marketing Letters, 12(1), pp. 13-24
Endorsers
Credibility: The Process of internalisation
Trustworthiness
The property of being perceived as believable and
dependable
Expertise
The characteristic of having specific skills, knowledge, or
abilities with respect of the endorsed brand
Attractiveness: The Process of Identification
Physical
Attractiveness
The trait of being regarded as pleasant to look at in terms of a
particular group’s concept of attractiveness
Respect
The quality of being admired or even esteemed due to one’s
personal qualities and accomplishments
Similarity
The extent to which a endorser matches an audience in terms
of characteristics pertinent to the endorsement relationship
Erdogan et al. (2001), “Selecting Celebrity Endorsers: The Practitioner’s
Perspective,” Journal of Advertising Research, 41(3), pp. 39-48