Download advertising - Southern Methodist University

Professor Chip Besio
Cox School of Business
Southern Methodist University
Marketing Mix
PROMOTION
Advertising
Sales Promotions (short-term incentives)
Personal Selling
Public Relations
Direct Marketing
What Is Advertising?
Paid form of non-personal presentation
of ideas, product
Main vehicle used to build image
Traditional Communication
Model
Rules
1. Consider the receiver
2. Determine the desired response
Advertising Objectives
Informative Advertising
Persuasive Advertising
Build Primary Demand
Build Selective Demand
Comparison Advertising
Reminder Advertising
Compares One Brand to
Another
Keeps Consumers Thinking
About a Product.
More Recent Communications
Models
 User expects a degree of personal control of
information
 Individuals are active participants in
communications (e.g., multiple feedback loops,
immediate communication)
 Browsing the web results in a level of
satisfaction and pleasure
Message Strategy
Considerations in developing the message
What are the objectives?
Who is target market?
What are current perceptions of the brand?
Message Execution
Appeal
• Rational vs.
Emotional
• Product-focused vs.
Customer-focused
Point-of-View
• One-sided
• Two-sided
• Comparative
 Effective ad copy must capture the
target Market’s attention and
interest
Should Be:
• Meaningful
• Believable
• Distinctive
Message Execution
EXAMPLES
Testimonial
Evidence
Scientific
Evidence
Technical
Expertise
Slice of Life
Typical
Message
Execution
Styles
Personality
Symbol
Musical
Lifestyle
Fantasy
Mood or
Image
Media
 Needs to provide access to the target
market
 Needs to fit with product
 Needs to fit with the message
 Generate exposures cost effectively
When and How Often to Advertise
 Timing - Depends upon viewing and/or reading
habits
 Frequency - depends on the complexity of the
message
 Wear out - Advertising too frequently risks negative
associations with the brand and “tuning out
Advertising Arithmetic
 Reach - The percentage of the population that has been exposed
to the advertisement at least once (cannot exceed 100%)
 Frequency - The average number of times that a reached
individual has been exposed to the advertisement
 GRPs (Gross Rating Points) - Usually expressed as a
percentage of the population, it measures the total number of
exposures that result from a given set of media options (can exceed
100%).
GRPs = Reach x Frequency
How Do We Evaluate Ads?
QUESTION: “I know that half of my advertising is wasted. My problem is that I
don’t know which half.”
--- John Wannamaker (circa 1935)
Recall
Recognition
Theater tests
Mock magazines
Behavior
Hits/click-throughs
SALES?
WHAT IS THE RELATIONSHIP
BETWEEN AD SPENDING AND RESULTS?
Awareness/
Attitudes
Advertising
Who Develops the Advertising?
Sales Departments in
Small Companies
Advertising Departments
in Larger Companies
Advertising Agency
Firm that Assists Companies
in Planning, Preparing,
Implementing and
Evaluating Their
Advertising
Programs.
Television
 Advantages
 Large audience
 Low cost per exposure
 High impact- colour, sound and
movement
 Can target specific groups
 Disadvantages
 Very high overall cost
 Limited prime time space
 Short-lived
 May not be watched- visual wallpaper
 Proliferation of channels reduces
audience
 Conveys only a limited message
Magazines
Advantages
 Useful for targeting specific
groups
 Good reproduction- high quality
gloss images
 Long life-read at leisure
 Can be linked to features
 All consumer interests catered for
Disadvantages
 Can be expensive
 Long lead time
 Some magazines are only
published monthly
 Moderate impact
 Slow impact due to long life
 Magazines with limited
readership are not suitable for
mass marketing
Advertising on the Internet
 Paid-for search inclusion (e.g. Google Adwords)
 Company website.
 Banner ads - on line adverts on relevant website.
 Link exchange- mutual exchange of links between web
sites or similar or complementary interest.
 Search engine/directory listing.
 Ezine/email sponsorship- on line magazines delivered
to subscribers via email.
Advertising and Promotion
Advertising and Promotion
Internet advertising is rapidly
replacing some traditional ad forms
Radio
 Advantages
 Disadvantages
 Relatively inexpensive
 Limited impact
 Can target specific segment
 No vision
 Relatively mobile
 Short life
 Local
 Listener’s attention limited
 Audio wallpaper
 Mainly local rather than national
Newspapers
Advantages
 Widely read
 Can target specific segments
 Frequent publication
 Short lead time
 Inexpensive compared to
television
 Local, regional and national
papers available
 Colour printing adds to impact
Disadvantages
 Short life
 Low impact
 May get lost in the rest of the
paper
 Not every group reads a paper
 High costs especially for national
newspaper
Cinema
Advantages
 High impact
 Captive audience
 Can be specifically targeted
 Local audience
 Visual, sound, movement
Disadvantages
 Limited audience
 Mainly young audience
 Short lived message
 May only be seen once
Outdoor (Billboards)
Advantages
 Repeatedly seen
 24/7 coverage
 Target particular area
 May encourage impulse buying if
close to shops
 Local media
Disadvantages
 Message must be short and simple
 Cannot target socio economic
groups
 Rarely attract full attention
 Short lived
 May be seen as traffic hazard
 Difficult to measure
effectiveness
Advertising and Promotion
- Outdoor
Bulletins w/
Extensions
Digital Bulletins
Wallscapes
Cityscape
Spectaculars
Advertising and Promotion Outdoor
The Evolution of Advertising in the
United States - Madison and Vine
Branded
Entertainment
 The blending of
advertising and integrated
brand promotion with
entertainment
programming
 Brand “placement” key
tactic here
 Some films and television
programs are considered
hour long promotions
IMC - A Broader View of Advertising
IMC
Mass Marketing
• Selling orientation
• One-size-fits-all
One-on-Few
Marketing
• De-massification
• Customer knowledge
• Interactivity
One-on-One
Marketing?
• Customization
• Micro-marketing
• Relationships
 IMC involves integrating all communications with
the customer to develop a more personal, more
effective relationship
IMC
INTEGRATION
Where - Media
When - Timing
Contact Points
Message
On Strategy
Marketing P.R.
Promotion
Direct Marketing
Advertising
IMC
MEASUREMENT
 Another key to IMC is measuring:
 Exposures
 Attitudes
 Behaviors
...and tracking the changes over time
 This enables monitoring of customer relationships