1. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Chapter 10

2. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Management of Effective Advertising 10.1The Advertising Plan 10.2Creation of the Advertisement 10.3Analysis and Evaluation of Advertising Messages 2 CHAPTER 10

3. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. 10.1 The Advertising Plan Goals Identify the steps in creating an advertising plan. Recognize the various types of analyses that should be performed when creating an advertising plan. Terms advertising plan situational analysis SWOT analysis creative strategy return on investment (ROI), 3 CHAPTER 10

4. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. What Is the Advertising Plan? Perform a situational analysis Situational analysis Describes the environment in which a business is operating SWOT analysis An examination of a business’s strengths, weaknesses, opportunities, and threats 4 CHAPTER 10

5. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Set advertising objectives Build consumer awareness of a product or brand Communicate product or brand benefits Generate interest in a product or brand Create, change, or reinforce consumers’ attitudes about a brand Persuade consumers to switch brands Attain brand loyalty Increase sales Determine the budget CHAPTER 10 5

6. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Develop the creative strategy Creative strategy Describes who the target market is, what the advertising message should be, and how the message will be communicated Execute the plan Once the strategy is in place, the creative development process begins Evaluate the plan Return on investment (ROI) The amount earned as a result of money invested, expressed as a percentage CHAPTER 10 6

7. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Advertising Plan Analyses Industry analysis What is the estimated size of the industry (in total sales or number of products/services sold)? What is the expected outlook of the industry? (Is it on the rise or decline?) What are the sales trends in the industry over recent years? What are the product/service trends in the industry? Who are the leading businesses (top brands) in the industry? What types of marketing strategies are commonly used in this industry? Is the industry sensitive to economic conditions? 7 CHAPTER 10

8. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Market analysis Who is the target customer? What is the size of the overall target market? What features and benefits are most important to the target customer? What would motivate the target customer to buy our company’s product or service instead of the competitors’? What is the best way to reach the target customer? How is the market changing? CHAPTER 10 8

9. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Competitor Analysis Who are the competitors? What threats do they pose? What are the strengths and weaknesses of the competitors? What marketing strategies do the competitors use and how successful are those strategies? How are the competitors likely to respond to changes in our marketing strategies? Global Analysis Standardize for greater efficiency Customize to appeal to local tastes CHAPTER 10 9

10. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. 10.2 Creation of the Advertisement Goals Describe different advertising creative formats. Identify processes involved in the copywriting, art, and production stages of advertising. Terms image advertising comparison advertising copywriting slogan illustration storyboard layout 10 CHAPTER 10

11. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Select a Creative Format Slice-of-life advertising Portrays a scene from everyday life Lifestyle advertising Advertisers have to understand the psychographic characteristics of their target market Testimonial advertising When a spokesperson endorses their product Humorous advertising Way to make an emotional connection with the audience Image advertising Promotes the general perception of a product or service rather than its function or purpose 11 CHAPTER 10

12. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Scientific advertising Uses research or scientific evidence to promote a brand Product demonstration advertising Shows how to use the product, identifies the benefits of using the product, and emphasizes the value of owning the product Musical advertising Music functions as a bridge between the target audience and the advertisement Comparison advertising Used to promote the superiority of a brand by comparing its features to those of a competitive brand CHAPTER 10 12

13. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Determine Copywriting, Art, and Production Strategies Copywriting and art directing Must communicate the benefits and value of a brand in a new or unique way Copywriting The process of using words to express creative ideas and concepts Slogan Short, memorable phrase that establishes an identity for a brand 13 CHAPTER 10

14. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Print advertising Print advertising includes the headline, subhead, and body copy Illustration Actual drawing, photography, or other type of art used in advertising Radio advertising Copywriters may decide to use music format, such as a jingle, or a dialogue format, which often involves conversation between two people CHAPTER 10 14

15. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Television advertising Provides a highly creative opportunity for copywriters Commercials can evoke emotions and communicate brand values in a way that other advertising formats cannot Storyboard A sketch that provides a play-by-play sequence of visual scenes and ad copy used in the television advertisement Digital advertising A cross between print advertising and television advertising CHAPTER 10 15

16. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. The production process Layout Drawing of the print advertisement showing where all the elements in the ad are positioned CHAPTER 10 16

17. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. 10.3Analysis and Evaluation of Advertising Messages Goals Describe various methods used to evaluate advertising effectiveness. Identify simple approaches to use in determining advertising effectiveness. Terms recognition test recall test attitude study resonance test 17 CHAPTER 10

18. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Evaluate Advertising Effectiveness Recognition and recall measures Help measure whether ads were effective at increasing brand awareness Recognition test Measures a lower level of brand awareness by determining whether audience members remember seeing the ad Recall test Measures how much the audience remembers about the advertising message Attitude measures A common advertising objective is to create, change, or reinforce consumers’ attitudes about a brand Attitude study Measures consumer attitudes before and after exposure to an ad 18 CHAPTER 10

19. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Emotional measures One way to generate interest in a brand and attain brand loyalty is to make an emotional connection with consumers Resonance test Measures the extent to which an advertising message resonates or strikes a chord with the target audience Behavioral measures The main purpose of an advertising campaign often is to influence consumers’ behavior Advertisers want consumers to take some kind of action, such as visit a website or make a purchase CHAPTER 10 19

20. Advertising and Sales Promotion ©2013 Cengage Learning. All Rights Reserved. Other Strategies to Determine Advertising Effectiveness Track retail traffic Use a website stat counter to determine the number of visitors to the company’s website Ask people how they found out about the company Discontinue advertisements and measure any changes in business Use different telephone numbers Use direct-response advertisements 20 CHAPTER 10