1 Advertising. 2 Outline n Promotional mix n Advertising –objectives, budgeting, message / media...
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Transcript of 1 Advertising. 2 Outline n Promotional mix n Advertising –objectives, budgeting, message / media...
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AdvertisingAdvertising
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OutlineOutline
Promotional mixPromotional mix AdvertisingAdvertising
– objectives, budgeting, message / media objectives, budgeting, message / media strategystrategy
Integrated marketing communicationIntegrated marketing communication Global advertisingGlobal advertising
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The Promotional MixThe Promotional Mix
AdvertisingAdvertising Sales promotionSales promotion Direct marketingDirect marketing Public relationsPublic relations Personal sellingPersonal selling
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AdvertisingAdvertising
Non-personal forms of communication, Non-personal forms of communication, conducted through paid media under conducted through paid media under clear sponsorshipclear sponsorship
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AdvertisingAdvertising
Objectives (Mission)Objectives (Mission) Budget (Money)Budget (Money) Program PlanningProgram Planning
– MessageMessage– MediaMedia
MeasurementMeasurement
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Hierarchy of ObjectivesHierarchy of Objectives
OperationalOperational– get message through to consumerget message through to consumer
IntermediateIntermediate– brand awareness, communicate attributesbrand awareness, communicate attributes
Super-ordinateSuper-ordinate– increase loyalty, influence purchase/usageincrease loyalty, influence purchase/usage
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Objectives of Advertising: By Objectives of Advertising: By Stage of DMPStage of DMP
– AwarenessAwareness– Information searchInformation search
» establish image, modify positionestablish image, modify position
– EvaluationEvaluation» change trade-offs made by consumerchange trade-offs made by consumer
– PurchasePurchase» develop intent, promote new usagedevelop intent, promote new usage
– Post-purchasePost-purchase
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Advertising BudgetingAdvertising Budgeting
Heuristic approachesHeuristic approaches– competitive paritycompetitive parity– percentage of salespercentage of sales– increase over previous yearincrease over previous year
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Advertising BudgetingAdvertising Budgeting
Are you over advertising?Are you over advertising?– ““I know 50% of my advertising dollars are I know 50% of my advertising dollars are
wasted, I just don’t know which half.”wasted, I just don’t know which half.” Reasons for over advertisingReasons for over advertising
– agency incentives, asymmetric risk, poor agency incentives, asymmetric risk, poor measurementmeasurement
Reasons for under advertising?Reasons for under advertising?
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Message StrategyMessage Strategy
Communication processCommunication process Advertising appealsAdvertising appeals Advertising executionAdvertising execution
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Communications ProcessCommunications Process
SourceSource– credibility, attractiveness, powercredibility, attractiveness, power
MessageMessage– structure, appealstructure, appeal
ChannelChannel– personal / non-personal, alternative mediapersonal / non-personal, alternative media
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Advertising AppealsAdvertising Appeals
Information / newsInformation / news– new product, sale price, reminder to usenew product, sale price, reminder to use
Logical persuasionLogical persuasion– solution to problem, comparative solution to problem, comparative
advantage, favorable priceadvantage, favorable price Image / Emotional persuasionImage / Emotional persuasion
– transformational (associate experience transformational (associate experience with psychological state)with psychological state)
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Advertising ExecutionAdvertising Execution
Factual messageFactual message DemonstrationDemonstration ComparisonComparison TestimonialTestimonial Slice of lifeSlice of life HumorHumor
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Media PlanningMedia Planning
ReachReach– unduplicated portion of audience exposed unduplicated portion of audience exposed
to an ad at least onceto an ad at least once FrequencyFrequency
– average number of times the audience average number of times the audience reached by the campaign is exposed to the reached by the campaign is exposed to the adad
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Media PlanningMedia Planning
Gross Rating Point (GRP) = Reach x Gross Rating Point (GRP) = Reach x FrequencyFrequency– TRP refers to target audience onlyTRP refers to target audience only
Effective Rating Point (ERP) = R x F x Effective Rating Point (ERP) = R x F x ImpactImpact– Impact depends upon vehicleImpact depends upon vehicle
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Reach and FrequencyReach and Frequency
GRP Reach Frequency
100 30 3.33
200 45 4.44
300 53 5.66
400 57 7.02
500 59 8.47
600 60 10.00
0
10
20
30
40
50
60
0 100 200 300 400 500 600
GRP
Reach
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Advertising EvaluationAdvertising Evaluation
Measure against hierarchy of Measure against hierarchy of objectives:objectives:– exposureexposure– receptionreception– retention (e.g., day-after recall)retention (e.g., day-after recall)– acceptanceacceptance– behaviorbehavior
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Does it pay to advertise?Does it pay to advertise?
Short termShort term– measurable response to advertising is measurable response to advertising is
negligiblenegligible Long termLong term
– drop in recognition, loyalty for drastic cuts drop in recognition, loyalty for drastic cuts in advertisingin advertising
An argument for experimentationAn argument for experimentation
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Integrated Marketing Integrated Marketing Communications (IMC)Communications (IMC)
Old approach: separated by functionOld approach: separated by function– advertisingadvertising
» educate, reinforce imageeducate, reinforce image
– direct marketingdirect marketing» acquire customers, deliver incentivesacquire customers, deliver incentives
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Integrated Marketing Integrated Marketing Communications (IMC)Communications (IMC)
IMC: coordinate promotional mix IMC: coordinate promotional mix elementselements– existing customers: build loyaltyexisting customers: build loyalty
» advertising, direct marketingadvertising, direct marketing
– new customers: encourage switchingnew customers: encourage switching» advertising, direct marketingadvertising, direct marketing
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Global AdvertisingGlobal Advertising
Advantages:Advantages:– economies of scaleeconomies of scale– lower advertising production costslower advertising production costs– consistent international imageconsistent international image– simplified coordination and controlsimplified coordination and control
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Global AdvertisingGlobal Advertising
DisadvantagesDisadvantages– difficulty of implementationdifficulty of implementation– e.g., Parker Pene.g., Parker Pen
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When is Global Advertising When is Global Advertising Appropriate?Appropriate?
Messages with visual appealMessages with visual appeal Brand images with universal appealBrand images with universal appeal New technologies not culturally boundNew technologies not culturally bound