Principles of Marketing
Lecture-33
Todays Topics
Advertising
Any paid form of nonpersonal presentation by an identified sponsor.
Any form of non-personal communication paid for by sponsor using mass media to persuade/inform an audience Products/Services Public Service Advertising Non-profit org. People (political candidates, celebrities) Places (retail outlets, vacation destinations)
Objectives
Inform: new product, new uses, price changes Persuade: encourage switching, purchase now, change perceptions
Remind: where to buy, may need in future, top of mind in off-season
Too Much Clutter!!!
Television: Print:
networks, cable, satellite dishes magazines, newspapers, junk mail
Radio:
fragmented audiences, on the more popular stations, your ads are sandwiched with four other ads. Internet
Billboards,
Problem
How do you get the attention of the audience????
Break Through the Clutter with Impact Advertising
Humor appeal Emotional appeal Moral appeal
Celebrity appeal Sensory appeal
Rational appeal
Steps to Creating an Effective Advertising Campaign
1) Define your target market 2) Determine their needs from your product - functional
- emotional
3) Develop an advertisement that creates an image for your product that is sought by your target market (positioning)
The Five Ms of Advertising
Message
Money
Factors to consider:
Message generation Message evaluation and selection Message execution review
Mission
Sales goals Advertising objectives
Stage in PLC Market share and consumer base Competition and clutter
MeasureSocial-responsibility ment
Media
Reach, frequency, impact Major media types Specific media vehicles Media timing Geographical
Communi cation impact Sales impact
Advertising frequency
Product substitutability
Major Advertising Decisions
Objectives Setting
Budget Decisions
Message Decisions
Media Decisions
Campaign Evaluation
Message Decisions
Message Strategy Message Execution
Objectives Setting
Communication objectives Sales Objectives
Budget Decisions
Affordable Approach Percent of sales Competitive parity Objective and task
Campaign Evaluation
Communication Impact Sales Impact
Media Decisions
Reach, Frequency, Impact Major Media Types Specific Media Types Media Timing
Advertising Objective
Informative Advertising Persuasive Advertising
Reminding Advertising
Setting Message Goals
Increasing Brand Awareness
Increasing Sales Changing the by a Certain Image of a Recognizing a Percentage Product Need for the Product
Setting Budget Goals
Setting the Advertising Budget
Product Differentiation
Stage in the Product Life Cycle
Advertising Frequency
Factors in Setting the Advertising Budget
Market Share
Competition and Clutter
Affordable Method
Percentageof-Sales Method
CompetitiveParity Method
Objectiveand-Task Method
Developing Advertising Strategy
Message Decision Media Decision
Creating the Advertising Message
Plan a Message Strategy
General Message to Be Communicated to Customers
Develop a Message
Focus on Customer Benefits
Creative Concept Big Idea
Visualization or Phrase Combination of Both
Advertising Appeals
Meaningful Believable Distinctive
Message Execution
Slice of Life Lifestyle Fantasy Mood or image
Musical
Personality symbol
Technical expertise
Scientific evidence
Testimonial evidence
Design the Ad
Humorous Appeals Unique Selling Proposition Comparative Advertising Sex Appeals
Advertising Appeals
Fear Appeals
Demonstration
Testimonial
Lifestyle
Slice-of-Life
Choose the Media
Television
Yellow Pages
Newspaper
Magazine
Major Kinds of Media
Direct Mail Outdoor
Radio
Internet
Television
Recent trend is the growth of cable television advertisements.
Marketers can now target audiences through special interest channels. (Food network, home and garden, etc).
Radio
With commute times growing, radio advertising revenues are growing faster than any other media. Very easy to target your audience.
Print
Consumer and business publications.
Can specifically target your market. Marketers carefully study subscription rates and demographic data for each news paper/magazine.
Outdoor Advertising
Billboards, painted bulletins or displays (such as those that appear on the walls of buildings,) and electric spectaculars
Can be local, regional, or national
Outdoor advertising is effective along metropolitan streets and in other hightraffic areas
Other Advertising Media
Transit advertising: ads placed both inside and outside of buses, subway trains and stations, and commuter trains Cinema advertising Ads on telephone booths and park benches Ads can be printed in programs of livetheater productions Directory advertising (yellow pages) Hot air balloons, blimps, banners behind planes, and scoreboards
Media Scheduling
Step 1. Decide on Reach, Frequency, and Impact
Step 2. Choosing Among Major Media Types
Step 3. Selecting Specific Media Vehicles
Step 4. Deciding on Media Timing
Setting the timing and sequence of a series of advertisements. Sales patterns (seasonal), repurchase cycles, and competitors activities are the most important variables. Advertisers use the concepts of reach, frequency, and gross rating points to measure the effectiveness of media scheduling plans.
Reach: the number of different
people or households exposed to an advertisement at least one during a certain time period.
Frequency: the number of times
an individual person is exposed to an advertisement in a certain time.
Gross rating point: reach
times frequency.
Evaluating Advertising Effectiveness
Pretesting
Tools: Focus Groups Screening Persuasion Scores
Posttesting
Tools: Unaided Recall Tests Aided Recall Tests Inquiry Evaluations
Sales Effectiveness Evaluations
Tools: Monitor Sales Brand-to-Sales Effects
Advertising Program Evaluation
Communication Effects
Is the Ad Communicating Well?
Sales Effects
Is the Ad Increasing Sales?
What to communicate?
Get Attention
Hold Interest
Arouse Desire
Obtain Action
Ways to Handle Advertising
Sales Departments in Small Companies
Advertising Departments in Larger Companies
Advertising Agency
Enough for today. . .
