Advertising 2

Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

Slide Slide 22Advertising



Why Do We Do Why Do We Do AdvertisingAdvertising

• Personal Selling is preferred, because Personal Selling is preferred, because it is so effective - but, it is expensive it is so effective - but, it is expensive sometimes to contact EVERYBODY this sometimes to contact EVERYBODY this wayway

• Advertising is not as direct as Personal Advertising is not as direct as Personal Selling, but you can reach a lot of Selling, but you can reach a lot of peoplepeople



Advertising in Canada has Advertising in Canada has to be Internationalto be International

• Our Canadian market is very multi-culturalOur Canadian market is very multi-cultural

• Advertising in Canada has to acknowledge Advertising in Canada has to acknowledge the international aspects in order to be the international aspects in order to be successfulsuccessful

• A large part of the market in Toronto is A large part of the market in Toronto is NOT from the U.K. so we have to have NOT from the U.K. so we have to have advertising that can be understood by advertising that can be understood by other peopleother people



The Top 10 Advertisers in CanadaRank Name

11 General Motors of CanadaGeneral Motors of Canada 113 048.4113 048.4

22 Procter & GambleProcter & Gamble 84 499.584 499.5

33 The Thomson GroupThe Thomson Group 70 159.370 159.3

44 BCEBCE 53 972.953 972.9

55 John Labatt Ltd.John Labatt Ltd. 50 036.050 036.0

66 Eaton’s of CanadaEaton’s of Canada 47 135.947 135.9

77 Sears CanadaSears Canada 46 582.146 582.1

88 Government of CanadaGovernment of Canada 43 928.743 928.7

99 The Molson CompaniesThe Molson Companies 42 873.642 873.6

1010 Chrysler CanadaChrysler Canada 41 171.541 171.5

Revenue(thousands of dollars)

1993 stats



http://www.westga.edu/~stalpade/303ch17/sld003.htmhttp://www.westga.edu/~stalpade/303ch17/sld003.htm



Advertising Objectives are Advertising Objectives are a Strategy Decisiona Strategy Decision

• Every ad should have clearly Every ad should have clearly defined objectivesdefined objectives

• these objectives guide the people these objectives guide the people who create the ads who create the ads



Nonpersonal selling of a particular Nonpersonal selling of a particular good or service.good or service.

- TV ads- TV ads

- billboards- billboards

- junk mail- junk mail

Product Advertising

Page 518



Institutional AdvertisingInstitutional Advertising

Also called Advocacy advertisingAlso called Advocacy advertising

See slide # 16See slide # 16



Competitive Advertising

Pioneering Advertising, also called Informative

“… “… tries to develop primary demand…”tries to develop primary demand…”

Done in the early stage of the Product Life Cycle.Done in the early stage of the Product Life Cycle.

Direct Indirect



Competitive Advertising

Tries to get you to take action now - buy the product Tries to get you to take action now - buy the product now. Immediate Buyingnow. Immediate Buying

Direct

Indirect

Tries to point out the advantages so if you think Tries to point out the advantages so if you think about this product later, you will buy their brandabout this product later, you will buy their brand



Advertising that makes direct comparisons Advertising that makes direct comparisons with competitive brands.with competitive brands.

Companies used to hesitate to do this, but now they Companies used to hesitate to do this, but now they do it freely.do it freely.

Sometimes it can backfire and cause the viewer to Sometimes it can backfire and cause the viewer to NOT want to buy the product - if the comparison is NOT want to buy the product - if the comparison is too harsh eg. Political advertising that is too nastytoo harsh eg. Political advertising that is too nasty

Comparative Advertising



Some countries do not allow Comparative Some countries do not allow Comparative Advertising.Advertising.

Other countries allow it,,, but,, you have to Other countries allow it,,, but,, you have to prove any statements you makeprove any statements you make

Comparative Advertising



Reminder Advertising

Done in the Maturity and Decline stage of the Done in the Maturity and Decline stage of the Product Life Cycle. You already know about the Product Life Cycle. You already know about the product - they want you to keep using it, even if new product - they want you to keep using it, even if new competitors come along.competitors come along.

These ads are usually “soft-sell” and try to be These ads are usually “soft-sell” and try to be entertaining.entertaining.

Page 521Page 521



Relationship between Advertising and the Product Life Cycle

Pioneering

Competitive

Comparative



Promoting a concept, idea, or Promoting a concept, idea, or philosophy, or the goodwill of an philosophy, or the goodwill of an industry, company, or organization.industry, company, or organization.

This is closely related to the PR program This is closely related to the PR program of the companyof the company

Institutional Advertising

Also called Advocacy advertising Page 521Page 521



Used often by Japanese conglomerates Used often by Japanese conglomerates that have many types of productsthat have many types of productseg.eg.

HitachiHitachi

SONYSONY

MitsubishiMitsubishi

Panasonic (Matsushita Electronics)Panasonic (Matsushita Electronics)

Institutional Advertising

Page 521Page 521



The sharing of advertising costs between the The sharing of advertising costs between the middlemen and retailer and the manufacturer. This middlemen and retailer and the manufacturer. This means they will co-operate to display sales means they will co-operate to display sales promotion material and share the costs of promotion material and share the costs of commercials and billboards etc.commercials and billboards etc.

Co-operative Advertising

Retail Advertising

Retail advertising is the advertising done by stores Retail advertising is the advertising done by stores that sell “stuff” directly to the consumers.that sell “stuff” directly to the consumers.



Page 523 8th edition

Page 444 9th edition



Before we talk Before we talk about choosing the about choosing the

best way to best way to advertise, we first advertise, we first have to discuss our have to discuss our

PositionPosition



PositioningPositioning• Remember Chpt 3Remember Chpt 3

• Positioning involves developing a Positioning involves developing a marketing strategy aimed at a particular marketing strategy aimed at a particular market segment - in order to achieve a market segment - in order to achieve a desired position with respect to the desired position with respect to the competition, in the mind of the buyer.competition, in the mind of the buyer.

• ie. That buyers will think a certain way ie. That buyers will think a certain way about a product - re: its competitorabout a product - re: its competitor



PositioningPositioning1. By attributes 1. By attributes - shampoo (Pantene Pro V)- shampoo (Pantene Pro V)

2. By price 2. By price - Zeller’s “lowest price is the law”- Zeller’s “lowest price is the law”

3. By competitor- Snapple, “We’re #3”3. By competitor- Snapple, “We’re #3”

4. By application 4. By application - Nutrigrain - until we get beamed - Nutrigrain - until we get beamed to work!to work!

5. By product user 5. By product user - consumer, industry, govt- consumer, industry, govt

6. By product class 6. By product class - convenience, shopping, specialty - convenience, shopping, specialty goodsgoods



• NewspapersNewspapers

• MagazinesMagazines

• TelevisionTelevision

• RadioRadio

• Direct MailDirect Mail

• OutdoorOutdoor

Media SelectionMedia Selection

? - in which ? - in which category is the category is the most money most money spentspent



• Newspapers - largest share of advertising, 26%Newspapers - largest share of advertising, 26%

• Magazines - 12%Magazines - 12%

• Television - 2nd major category, 14%Television - 2nd major category, 14%

• Radio - 7%Radio - 7%

• Direct MailDirect Mail

• Outdoor, billboards etc. - 6%Outdoor, billboards etc. - 6%

Media SelectionMedia Selection

MediaMedia AdvantagesAdvantages DisadvantagesDisadvantages

NewspapersNewspapers FlexibilityFlexibility Short lifespanShort lifespanCommunity prestigeCommunity prestige Hasty readingHasty readingIntense coverageIntense coverage Poor reproductionPoor reproductionReader control of exposureReader control of exposureCo-ordination withCo-ordination with national advertisingnational advertisingMerchandising serviceMerchandising service

MagazinesMagazines SelectivitySelectivity Lack of flexibilityLack of flexibilityQuality reproductionQuality reproductionLong lifeLong lifePrestige associated withPrestige associated with some magazinessome magazinesExtra servicesExtra services

TelevisionTelevision Great impactGreat impact Temporary nature ofTemporary nature ofMass CoverageMass Coverage message messageRepetitionRepetition High costHigh costFlexibilityFlexibility High mortality rate forHigh mortality rate forPrestigePrestige commercials commercials

Evidence of public distrustEvidence of public distrustLack of selectivityLack of selectivity

Advantages and Disadvantages of the Various Advertising MediaAdvantages and Disadvantages of the Various Advertising Media

MediaMedia AdvantagesAdvantages DisadvantagesDisadvantages

RadioRadio ImmediacyImmediacy FragmentationFragmentationLow costLow cost Temporary nature ofTemporary nature ofPractical audiencePractical audience message message selectionselection Little research informationLittle research informationMobilityMobility

OutdoorOutdoor Quick communication of Quick communication of Brevity of the messageBrevity of the messageAdvertisingAdvertising simple ideas simple ideas Public concern overPublic concern over

RepetitionRepetition aesthetics aestheticsAbility to promote productsAbility to promote products available for sale nearbyavailable for sale nearby

Direct MailDirect Mail SelectivitySelectivity High cost per personHigh cost per personIntense coverageIntense coverage Dependence on quality ofDependence on quality ofSpeedSpeed mailing list mailing listFlexibility of formatFlexibility of format Consumer resistanceConsumer resistanceComplete informationComplete informationPersonalizationPersonalization

Advantages and Disadvantages of the Various Advertising MediaAdvantages and Disadvantages of the Various Advertising Media



Page 528



To produce, then additional money to get “air” To produce, then additional money to get “air” timetime



Planning The Best Planning The Best MessageMessage

What should an ad accomplishWhat should an ad accomplish

1. Gain attention and interest1. Gain attention and interest

2. Inform and persuade2. Inform and persuade

3. Lead to the person buying3. Lead to the person buying

Page531




““Copy Thrust”Copy Thrust”

the words you say to get the the words you say to get the attentionattention

1. Copy - the text1. Copy - the text

2. Thrust - the intention, direction2. Thrust - the intention, direction




““A I D A”A I D A”

A - AttentionA - Attention

I - InterestI - Interest

D - DesireD - Desire

A - ActionA - Action

Page531



Direct Response AdsDirect Response Ads

• Call 1-800-………….Call 1-800-………….

• See our web site at See our web site at WWW.STUFF.COM WWW.STUFF.COM



The Advertising CampaignThe Advertising Campaign

• When developing a mktg comms When developing a mktg comms strategy, you do not restrict strategy, you do not restrict your plan to just advertisingyour plan to just advertising

• Many things are also done such Many things are also done such as direct mailing, PR, special as direct mailing, PR, special events, radio, mediaevents, radio, media



• PretestingThe assessment of an advertisement’s effectiveness before it is actually used.

• Post-testingThe assessment of advertising copy after is has been used.

Assessing the Effectiveness of an Advertisement

Page 387



A marketing specialist firm that assists the A marketing specialist firm that assists the advertiser in planning and preparing its advertiser in planning and preparing its advertisements.advertisements.

They have specialists who know all about the They have specialists who know all about the effect of different advertising methods and effect of different advertising methods and can help a company with their strategy.can help a company with their strategy.

Advertising AgencyAdvertising Agency

Page 535Page 535



Having celebrities lend their name and influence to the promotion of a product.

Celebrity Marketing



Marketing technique that associates a product with the positive perception of a type of individual or role.(ie. Naya water with healthy lifeguards)

Role Model Marketing

Sometimes used by companies who cannot afford to pay a celebrity.

Advertising 2

Business

Transcript of Advertising 2