Module 4

UNIT II: MANAGING ADVERTISING AS

A PROMOTIONAL MIX

▸ Module 4
▸ DEVELOPING AND
MANAGING ADVERTISING
PROGRAM
Module Objectives
▸ At the end of this module, you should be able to:
▸ 1. Identify the 5 Ms of advertising;
▸ 2. Determine the aims of advertising campaigns;
▸ 3. List the various factors to consider when
setting advertising budget;
▸ 4. Enumerate the various media options for
delivering advertising message; and
▸ 5. Decide on what specific medium/media should
be considered in connection with the
▸ product to be advertised.
Module Introduction
▸ Being in an advertising campaign is a daunting task.
There are many considerations to look into half of
which is technical and strategic while the other is
creative in nature. As the future Creative Director or
Principal of an advertising agency, you should be well
acquainted with the technicalities of developing and
managing an advertising campaign from the very
moment you accept a job order form a client to post-
production promotions. In this module, you will be
taught on what areas to focus on in developing a good
yet competitive advertising program in all its technical
and creative aspects.
• Advertising

As a matter of review, let us first define what

advertising is according to eminent
personalities in business.
Advertising is called direct communication
with customers. According to Phillip Kotler,
advertising is any paid form of non-personal
presentation and promotion of ideas, goods,
or services by an identified sponsor
The 5 M’s of Advertising

▸ If marketing has the proverbial 4 Ps (now

expanded to 7 Ps), advertising has its own
set of 5 Ms for easier understanding and
semantic association of first-time learners
and even seasoned advertising practitioners.
▸
5 M's of Advertising
Mission
It states the objectives of the advertising. It also
includes the sales goals of the company.
Money
It gives an idea that how much money should be spent
by the company for the advertisement. Factors to be
considered for this are stage of product life cycle,
market share and consumer base, competition,
advertisement frequency and product substitutability.
Message

▸ Message includes what message should

be spent in advertisement. It includes
message generation, message
evaluation and selection, message
execution and social responsibility
review.
Media

▸ It includes which media should be used

for the advertisement. It also includes
reach, frequency, and impact of the
advertisement. It also contains major
media types, media vehicles, media
timing and geographical media
allocation.
Measurement

This pertains to evaluation of the

results. It measures
communication impact and sales
impact by an advertisement.
Setting the Advertising Objectives

There are four (4) general advertising

objectives, to wit:
1. Informative Advertising
The prime objective of the advertising is to inform
the existing and potential customers
about the product. It states the various features
and highlights the dominant benefits of the product
to its target market.
2. Persuasive Advertising
▸ It aims to create liking preference,
conviction and purchase of a product or
service.
▸ Persuasion will create demand of the
product. In a way, it tries to sway favorable
preference from a product’s target market
and in the end compel them to choose it
over other alternatives.
3. Reminder Advertising
It aims to simulate repeat purchase of
products and services. This will remind the
customers that the product may be needed
in the near future. This signals that a
product is already accepted to a certain
extent in the market yet it tries to make the
market stick with the product and
motivates the market to buy more of it.
4. Reinforcement Advertising
It aims to convince current purchases
that they made the right choice. This
advertising objective motivates
customers to celebrate their purchase
and veer away from the relative buyer’s
remorse feeling that may develop after
the purchase
Deciding on the Advertising Budget
Specific factors that should be
considered when setting the advertising budget are
enumerated below:
1. Stage in the Product Life Cycle
New products typically need large advertising
budgets to build awareness and to gain consumer
trial. Mature brands usually require lower budgets as
the ratio to sales.
2. Market Share and Consumer Base

High market share brands usually needs

more advertising spending as a person of
sales than do low market share brands.
Building the market or taking share from
competitor requires
larger advertising spending than does
simply maintaining current share.
3. Competition and Clutter

In a market with many competitors

and high advertising spending, a
brand must advertise more heavily to
be notices above the noise in the
market.
4. Advertising Frequency

▸ When many repetitions are needed

to present the brand’s message to
consumers, the
▸ advertising budget must be larger
5. Product Substitutability

▸ A brand that closely resembles other

brands in its product class requires heavy
advertising to set it apart.
▸ When the product differs greatly from
competitors, advertising can be used to
point out the differences to consumers
Developing the Advertising Campaign

▸
In designing and evaluating an
ad campaign, it is important to
distinguish the message
strategy or positioning of an ad
from its creative strategy
Message Generation and Evaluation

Today’s advertising messages must be

-better planned,
 - more imaginative,
 - more entertaining and
 -more rewarding to consumers to gain and
hold attention.
Creative strategy will play an increasingly
important role in advertising success
Effective message strategy

Begins with identifying customer benefits that

can be used as advertising appeals.

Advertising appeals should have three

characteristics:
 Meaningful,
 Believable and
 Distinctive.
Creative Development and Execution

▸ The impact of the message depends not only

on what is said but also on how it is said.
▸ Any message can be presented in different
execution styles. Message execution can be
decisive.
Advertising medium for execution:

▸ 1. Social Media Ads

▸ More and more people these days rely on
social media contents to entertain
themselves.
▸ Who would not know Youtube, Facebook,
Instagram, or Twitter? These are now the
new powerful media for effective
advertising campaigns.
2. Television Ads
▸ It is generally acknowledge as the
most powerful advertising medium.
Properly designed and executed TV
ads can improve brand equity and
affect sales and profits.
Print Ads
▸ It offers a stark contrast to
broadcast media. In general
there are two main print
media:
Newspaper Ads

▸ It offers daily readership from a

wide spectrum of consumer
markets and relatively cheaper.
Radio Ads

▸ It is cheaper than television. Radio

listening is expected to increase
significantly over the coming years.
Radio Ads can be extremely creative.
Creative devices can tap into the
listener’s imagination to create
powerfully relevant and popular images
Film Ads

▸ Many local firms use this medium to

advertise their products and services as
this minimizes
▸ the spillage and the wastage of
advertising money
Outdoor Ads
▸ This include billboards or
waiting shed signage and
posters
Transportation Ads

▸ This includes
advertising copies on
buses, jeepneys, taxis
etc.
Social Responsibility Review
▸ Advertisers and their agencies
must be sure advertising does not
over step social and legal norms.
▸ Public policy makers have
developed a substantial body of
lows and regulations to govern
advertising.
Deciding on Media and Measuring Effectiveness

▸ 1. Deciding on Reach, Frequency, and

Impact
▸ Reach is a measure of the percentage of
people in the target market who are
exposed to the ad campaign during a
given period of time.
Deciding on Reach, Frequency, and Impact...

▸ Frequency is a measure of how many times

the average percent in the target market is
exposed to the message.
▸ The advertiser must also decide on the desired
media impact-the qualitative value of a
message exposure through a given medium.
2. Choosing among Major Media Types
▸ The major media types are
 newspapers,
 televisions,
 direct mail,
 radio,
 magazines,
 outdoor and
 the most powerful these days, online (think social media) .

▸ The media habits of the target consumers will affect media choice.
Advertisers look for media that reach target consumers effectively.
3. Selecting specific vehicles

▸ The media planner now must

choose the best media vehicles
and specific media within each
general media type, media
planners must complete the cost
per thousand percents reached by
a vehicle.
4. Deciding on Media Timing and Allocation

▸ The advertiser must also decide how to schedule

the advertising over the course of a year.
▸ The firm can vary its advertising to follow the
seasonal pattern, or to be the same all year.
▸ The idea is to advertise heavily for a short period
to build awareness that carries over to the next
advertising period.
Evaluating Advertising Effectiveness
▸ Good planning and control of advertising depend
on measures of advertising effectiveness.
▸ Most advertisers try to measure the
communication effect of an ad-that is, its potential
effect on awareness, knowledge, or preferences.
▸ A. Communication-Effect Research
▸ B. Sales Effect Research
A. Communication-Effect Research

▸ There are three major methods of pre testing.

▸ 1. Consumer Feedback Method
▸ Ask the consumers for their reactions to a
proposed ad. Record their responses and insights.
▸ Find common themes which can be used in the
next campaign or in product development.
2. Portfolio Test

▸ It asks consumers to view or listen to a

portfolio of advertisements. Consumers
are than asked to recall all the ads on
their contents, aided or unaided by the
interviewer.
3. Laboratory Test

▸ It use equipment to measure

physiological reactions like heartbeat,
blood pressure, perspiration to an ad;
or consumers may be ask to turn a
knob to indicate their moment to
moment liking or interest while
viewing sequence material.
B. Sales Effect Research

▸ Advertising’s sales effect is generally harder

to measure than its communication effects.
▸ Sales are influenced by many factors such as
features, price and availability as well as
competitor’s actions.
The formula for measuring the sales impact of
advertising includes the following variables:

 1. Share of Expenditure
 2. Share of voice
 3. Share of Mind and Heart
 4. Share of Market
Self-Assessment Questions # 2

▸ 1. List down 8 media that can be utilized in advertising.

Discuss when they can be really useful, for what product and
how they are appropriate for a given target market.
▸ (5 points each)