13-1

It’s an Ad Ad Ad Ad World

• Advertising is nonpersonal communication paid for by an identified sponsor using mass media to persuade, inform, and remind an audience.

13-2

Types of Advertising

• Product advertising - message focuses on a specific product

• Institutional advertising - message focuses on activities, personality, or point of view of a company

– advocacy advertising

– public service advertisements (PSAs)

13-3

Purposes of Product Advertising

• To educate people about a new product and what it does

• To emphasize a brand’s features and try to convince the target market to choose it over other options

• To ensure that people won’t forget about a well-established product

13-4

Product Advertising

13-5

Who Creates Advertising?

• An advertising campaign is a coordinated, comprehensive plan that carries out promotion objectives and results in a series of advertisements placed in media over a period of time

• Agencies– limited-service– full-service

13-6

Largest Ad Agencies

• J. Walter Thompson

• Leo Burnett Worldwide

• McCann-Erickson Worldwide

• BBDO Worldwide

• Grey Worldwide

13-7

Leo Burnett

13-8

Developing the Campaign

13-9

Step 1: Identifying the Target Market?

13-10

Click here

Establish Advertising Objectives

• Message objectives• Budget objectives

13-11

Advertising Appeals

• Reasons Why (USP)

• Comparative Advertising

• Demonstration

• Testimonial

• Slice-of-Life

• Lifestyle

• Fear

• Sex

• Humor

• Slogans and Jingles

13-12

USP Creative Strategy

USP clearly communicates the reason a product can satisfy a need

13-13

Step 4: Pretest What Will Be Said

• Copy testing measures ad effectiveness

– Concept testing

– Test commercials

– Finished testing

13-14

Step 5: Choose the Media

• Media planning is a problem-solving process for getting a message to a target audience in the most effective fashion

– Where to say it

– When to say it

13-15

Changes in Media Usage

13-16

Television

Pros• Creative and flexible• Prestigious• High impact messages• Network TV is cost

effective for reaching mass audience

• Cable TV is good for reaching targeted group

Cons• Quickly forgotten• Requires frequent

repetition• Increasingly fragmented

audiences• High costs on an

absolute basis• Shorter ads result in

increased clutter

13-17

Radio

Pros• Good for selective

targeting• Heard out of home• Relatively low cost• Can be modified

quickly• Uses listener

imagination

Cons• Listeners may not

pay full attention• Small audiences

mean ads must be repeated frequently

• Not appropriate for products requiring demonstration

13-18

Newspapers

Pros• Wide exposure and

extensive market coverage

• Flexible format permits use of color, different sizes and editions

• Useful for comparison shopping

• Local retailers can tie in with national ads

Cons• Most don’t spend much

time reading newspapers

• Low readership among teens and young adults

• Short life span• Very cluttered

13-19

Magazines

Pros• Narrowly targeted

audiences by specialized magazines

• High credibility and interest level provide good ad environment

• Long life span and pass along rate

• Excellent visual quality

Cons• With exception of direct

mail, the most expensive form

• Long deadlines• Must use several

magazines to reach target

13-20

Outdoor

Pros• Very high reach• Low cost• Good for

supplementing other media

Cons• Hard to

communicate complex messages

• Cannot demonstrate product effectiveness

• Controversial and disliked

13-21

Out-of-Home Media

13-22

Place-based Media

13-23

Internet Advertising

• Banners

• Buttons

• Search engine and directory listings

• Pop-up ads

• Email

– permission marketing

– spamming

13-24

13-25

Media Scheduling Terms_1

• Impressions - the number of people who will be exposed to a message placed in one or more media vehicles

• Reach - the percentage of the target market exposed to the media vehicle

• Frequency - the average number of times a person in the target group will be exposed to the vehicle

13-26

Media Scheduling Terms_2

• Gross Rating Points (GRPs) - reach * frequency

• Cost per Thousand (CPM) - compares the relative cost effectiveness of different media vehicles that have different exposure rates; it reflects the cost to deliver a message to 1000 people

13-27

Media Scheduling: How Often?

• Continuous - steady stream throughout year

• Pulsing - varies amount of advertising based on when product is in demand (e.g., suntan lotion)

• Flighting - advertising appears in short, intense bursts alternative with period of little to no activity

13-28

“1984” - Apple

13-29

Evaluating Advertising

• Posttesting means conducting research on consumers’ responses to advertising messages they have seen or heard

– unaided recall

– aided recall

– attitudinal measures

13-30

Public Relations

• Attempts to influence the attitudes and perceptions of consumers, stockholders, and other stakeholders toward companies, brands, politicians, celebrities, not-for-profit organizations

• Do something good, then talk about it

13-31

Objectives of Public Relations

• Introducing new products to manufacturers

• Introducing new products to consumers

• Influencing government legislation

• Enhancing the image of a city, region, or country

• Calling attention to a firm’s involvement with the community

13-32

Planning a PR Campaign

Develop Objectives

Execute the PR Campaign

Evaluate the Campaign

13-33

PR Activities

• Press Releases• Internal PR• Lobbying• Speech writing• Corporate identity• Media relations• Sponsorships• Special events• Advice and counsel

13-34

Press Release Types

• Timely topics

• Research project stories

• Consumer information

13-35

Press Releases

Accessing recent press releases – press room on the web

13-36

Oscar Mayer

13-37

Sponsorships

• PR activities through which companies provide financial support to help fund an event in return for publicized recognition of the company’s contribution

• Examples:

– Olympics

– NASCAR

13-38

Measuring Effectiveness of PR Efforts

• In-house assessment

• Awareness and Preference Studies

• Counting of press clippings

• Impression counts

• Media equivalencies

13-39

Direct Marketing

• Any direct communication to a consumer or business recipient that is designed to generate a response in the form of an order, a request for further information, and/or a visit to a store or other place of business for purchase of a product

13-40

Forms of Direct Marketing

• Mail order

– Catalogs

– Direct mail

• Telemarketing

• Direct response television

– Infomercials

– Home shopping networks

13-41

M-Commerce

• Promotional activities transmitted over mobile phones and other mobile devices such as personal digital assistants (PDAs)

– Prevalent in Europe and Asia

13-42

M-Commerce

• Improvements in mobile phone technology are making M-commerce more attractive