2. Copyright 2000 Prentice Hall17-1 Chapter 17 Advertising

3. Copyright 2000 Prentice Hall17-2 What is Advertising? n n Advertising is nonpersonal communication paid for by an identified sponsor using mass media to persuade or inform an audience. n n Advertising allows an organization to: – – communicate its message in a favorable way, and – – repeat the message as often as it deems necessary to have an impact on receivers.

4. Copyright 2000 Prentice Hall17-3 Types of Advertising n n Product Advertising – – Message focuses on a specific good or service such as Airwalk shoes. – – Purposes: » » Education » » Emphasis on features » » Reminder n n Institutional Advertising – – Message that promotes the activities, “personality,” or point of view of an organization or company such as California Raisins.

5. Copyright 2000 Prentice Hall17-4 Account Management Develops Campaign’s Strategy for Client Account Management Develops Campaign’s Strategy for Client Specialists Who Create Advertising Campaigns Creative Services Dreams Up and Produce the Ads Creative Services Dreams Up and Produce the Ads Media Planning Determines Effective Communication Vehicles Media Planning Determines Effective Communication Vehicles Research & Marketing Services Collect and Analyze Information to Help Develop a Strategy Research & Marketing Services Collect and Analyze Information to Help Develop a Strategy 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.

6. Copyright 2000 Prentice Hall17-5 Identify the Target Market Establish Message and Budget Objectives Design the Ad Pretest What Will be Said Choose the Media Developing the Advertising Campaign

7. Copyright 2000 Prentice Hall17-6 Setting Message Goals Setting Budget Goals Increasing Brand Awareness Increasing Brand Awareness Increasing Sales by a Certain Percentage Increasing Sales by a Certain Percentage Changing the Image of a Product Changing the Image of a Product Recognizing a Need for the Product Recognizing a Need for the Product Establish Message and Budget Objectives

8. Copyright 2000 Prentice Hall17-7 Unique Selling Proposition Unique Selling Proposition Humorous Appeals Humorous Appeals Fear Appeals Comparative Advertising Comparative Advertising Demonstration Testimonial Design the Ad Advertising Appeals Slice-of-Life Lifestyle Sex Appeals

9. Copyright 2000 Prentice Hall17-8 Pretest What Will be Said n n Pretesting is a research method that seeks to minimize mistakes by getting consumer reactions to ad messages before they are placed in the media. n n Copy testing measures the effectiveness of ads through such techniques as: – – Concept testing – – Test commercials – – Finished testing.

10. Copyright 2000 Prentice Hall17-9 Choose the Media Types of Media: Where to Say It Types of Media: Where to Say It Computer Media Television Out-of-Home Media Radio Magazines Directories Newspaper

11. Copyright 2000 Prentice Hall17-10 Media Scheduling: When to Say It n n A media schedule specifies the exact media to use, when, and how often the message should appear. n n Assess advertising exposure - degree to which the target market will see an advertising message in a specific medium and depends on the following two factors: n n Reach – – Frequency

12. Copyright 2000 Prentice Hall17-11 Continuous Schedule Steady Stream of Advertising e.g. shampoo Continuous Schedule Steady Stream of Advertising e.g. shampoo Flighting Advertising Appears in Short, Intense Bursts Alternating With Periods of Little or No Activity Flighting Advertising Appears in Short, Intense Bursts Alternating With Periods of Little or No Activity Pulsing Schedule Varies Adverting Depending on Product Demand e.g. suntan lotion Pulsing Schedule Varies Adverting Depending on Product Demand e.g. suntan lotion Media Scheduling: How Often to Say It?

13. Copyright 2000 Prentice Hall17-12 Evaluating Advertising n n Posttesting is research conducted on consumers’ responses to actual advertising messages they have seen or heard. n n Three ways to measure the impact of an advertisement are: – – Unaided recall – – Aided recall – – Attitudinal measures.

14. Copyright 2000 Prentice Hall17-13 Erosion of Brand Loyalty Technology Gives Power Back to the People Greater Emphasis on Point-of-Purchase Factors The Rules Are Changing The Advertising Environment is Cluttered Some Consumers Are Turned Off by Advertising Challenges Facing the Advertising Industry

15. Copyright 2000 Prentice Hall17-14 Global Reach Establishing Brand Images Globally Global Reach Establishing Brand Images Globally Diversity Reflecting Cultural Diversity of Target Markets Diversity Reflecting Cultural Diversity of Target Markets Technology Customizing Advertising to Customer Preferences Technology Customizing Advertising to Customer Preferences How the Advertising Industry is Meeting the Challenges

16. Copyright 2000 Prentice Hall17-15 Chapter Summary n Tell what advertising is and describe the major types of advertising. n Describe the major players in the advertising process. n Tell how advertisers develop an advertising campaign. n Describe the major advertising media and the important considerations in media planning. n Explain how advertisers evaluate the effectiveness of the campaign. n Discuss the challenges facing advertising.