MKT6 - Slide 1 to 13 1 6. Advertising Strategies MKT6

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6. Advertising 6. Advertising StrategiesStrategies

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How will Advertising improve How will Advertising improve sales?sales?

►Make the product the most desirable Make the product the most desirable product availableproduct available

►Harness this desire by making it easy Harness this desire by making it easy for the audience to act, e.g., toll-free for the audience to act, e.g., toll-free lines: “call now!”lines: “call now!”

► Could actually make it more difficult Could actually make it more difficult for the purchase – “brand image”: for the purchase – “brand image”: useful to guage the demand for the useful to guage the demand for the productproduct


Types of AdvertisingTypes of Advertising

► Product – aims to sell a specific product and Product – aims to sell a specific product and is targeted at the final users or channel is targeted at the final users or channel members. Types:members. Types: PioneerPioneer CompetitiveCompetitive ComparativeComparative ReminderReminder

► Institutional – used to promote image, Institutional – used to promote image, reputation, ideas of Company rather than reputation, ideas of Company rather than productproduct


Product AdvertisingProduct Advertising

►PioneerPioneer Tries to develop primary demand usually Tries to develop primary demand usually

for new product (Intro in PLC)for new product (Intro in PLC) Informs consumers about new productInforms consumers about new product

►CompetitiveCompetitive Attempts to develop selective demand for Attempts to develop selective demand for

specific brand (later in PLC)specific brand (later in PLC) Attempts to differentiateAttempts to differentiate


Product Advertising (contd)Product Advertising (contd)

►ComparativeComparative Aggressive that makes direct reference to Aggressive that makes direct reference to

rival brandrival brand Risky: draws attention to rival brand & Risky: draws attention to rival brand &

alienates certain consumersalienates certain consumers

►ReminderReminder Attempts to keep product’s name in forefront Attempts to keep product’s name in forefront

of consumers’ mindsof consumers’ minds Used for well-established products in late PLCUsed for well-established products in late PLC


Stages in an Advertising Stages in an Advertising CampaignCampaign

►Stage 1: Set advertising objectivesStage 1: Set advertising objectives►Stage 2: Set advertising budgetStage 2: Set advertising budget►Stage 3: Determine key messages and Stage 3: Determine key messages and

target audiencetarget audience►Stage 4: Decide what advertising Stage 4: Decide what advertising

media to usemedia to use►Stage 5: Evaluate results of the Stage 5: Evaluate results of the

advertising campaignadvertising campaign


Stage 1: Advertising Stage 1: Advertising ObjectivesObjectives

► Common objectives:Common objectives: Position firm’s brandPosition firm’s brand Introduce new products to specific marketsIntroduce new products to specific markets Attract new channel membersAttract new channel members Provide ongoing contact with existing customersProvide ongoing contact with existing customers

► Advertising objectives fall into 3 main Advertising objectives fall into 3 main categories:categories: To informTo inform To persuadeTo persuade To remindTo remind


Stage 2: Advertising BudgetStage 2: Advertising Budget

►Percentage of sales?Percentage of sales?►Any ideas?Any ideas?


Stage 3: Messages & Target Stage 3: Messages & Target AudienceAudience

►Message must be:Message must be: Meaningful – customers find message Meaningful – customers find message

relevantrelevant Distinctive – capture attentionDistinctive – capture attention Believable Believable

►Target audience?Target audience?


Stage 4: Which Media?Stage 4: Which Media?

► Factors in choosing media:Factors in choosing media: Promotion objectivesPromotion objectives Target audienceTarget audience Advertising budgetAdvertising budget Characteristics of the various mediaCharacteristics of the various media

►When choosing media, need to consider When choosing media, need to consider reach (proportion of target audience reach (proportion of target audience exposed), frequency, media impact (e.g., TV exposed), frequency, media impact (e.g., TV may have more impact for seniors traveling)may have more impact for seniors traveling)

► Another important factor is timing of the Another important factor is timing of the campaigncampaign


Stage 5: Evaluation of the Stage 5: Evaluation of the advertising campaignadvertising campaign

►Focus on:Focus on: Communication effects (intended Communication effects (intended

message communicated effectively to message communicated effectively to intended audience?)intended audience?)

Sales effect (generated intended sales Sales effect (generated intended sales growth?)growth?)

►Effectiveness of an advert – compared Effectiveness of an advert – compared to objectives (see p 377)to objectives (see p 377)


Cooperative AdvertisingCooperative Advertising

► Involves middlemen and producers Involves middlemen and producers sharing costs. Advantages:sharing costs. Advantages: Allows middlemen to compete directly in Allows middlemen to compete directly in

their local markets by providing some controltheir local markets by providing some control Better value for money for producersBetter value for money for producers Ads are likely to be better targetedAds are likely to be better targeted Acts as an incentive for channel membersActs as an incentive for channel members Allows ad messages to be coordinated, Allows ad messages to be coordinated,

integrated and consistentintegrated and consistent


Advertising on the InternetAdvertising on the Internet

► Banner adsBanner ads► Text adsText ads► Interstitials Interstitials ► Pop-up adsPop-up ads►Opt-out mailingOpt-out mailing►HTML adsHTML ads► Rich-media adsRich-media ads►Hybrid adsHybrid ads► Sponsorships/partnershipsSponsorships/partnerships

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MKT6 - Slide 1 to 13 1 6. Advertising Strategies MKT6