Mrs. Piotrowski Principles of Marketing 1

WHAT IS ADVERTISING? SECTION 1: 2

-any paid form of non-personal promotional communication by an identified sponsor. It is paid for by an organization and sent to an audience through a mass medium. (The name of the sponsor is clearly stated, and that sponsor controls the message that is sent.) -Used by for profit companies and churches, educational institutions, political organizations and government agencies. ADVERTISING 3

1.In the US, total advertising are over $250 billion a year. 2.Companies rely heavily on advertising to drive demand for their products and services. 3.Developing targeted, effective ads is a lengthy and expensive process. 4.In addition to delivering a message, advertising typically aims to sell a specific product, build a brand or, most often, a combination of the two. ADVERTISING FACTS: 4

List 3 product advertisements you have seen or heard recently. What medium was used for each ad? Have you seen or heard the same product advertised using a different medium? SOLVE.

1.Product Advertising gives the benefits of a specific product or service. It gives at least one product attribute as a reason for purchasing a product. “Phillips energy-saving light bulbs save money on your power bill.” 2.Brand Advertising aims to build an image. A brand is the accumulation of all the tangible and intangible qualities of a company or product line. These elements create brand character. IE: Coca-Cola..taste, color, fun, young… TWO APPROACHES TO ADVERTISING 6

1.Brand advertising uses common elements to define what a product or company stands for and to give it a personality in the minds of consumers. 2.Advertising for a company is called corporate advertising. TWO APPROACHES TO ADVERTISING 7

1.Brand advertising examples: A buick commercial on tv or a McDonald’s ad on a billboard 2.Product advertising examples: A Campbell’s soup commercial on tv or a max factor cosmetic ad in a magazine. **Almost all advertising is a mix of product and brand advertising TWO APPROACHES TO ADVERTISING 8

An advertising agency is a company that specializes in creating advertising. There are many roles that people play at an advertising agency: Account executive – the key liaison between the client and the agency. Account planner – spends time on finding the target market THE ADVERTISING AGENCY 9

Media planner – the person who develops the media plan which is a detailed listing of where and when ads will run. Art director – has talent in design and responsible for how the ad will look. Copywriter – background in writing and writes the copy/text/words for the ad Creative director – oversees the creative team..makes sure it conveys the right message. Producer – facilitates everything that goes on once client is on board and also responsible for staying on budget. THE ADVERTISING AGENCY 10

ADVERTISING PLANNING SECTION 2: 11

12 Think of an ad that you’ve seen that seems to be out of place (wrong medium, wrong time, etc.). What medium and/or time would have been more appropriate? Why?

An advertising plan is a document that outlines the activities to be completed and resources needed to create advertising. An advertising campaign is a series of related advertisements with a similar look, feel, and theme that centers on a specific product, service, or brand. THE PLANNING PROCESS 13

1.Set Objectives – the desired results to be accomplished within a certain period of time. THE PLANNING PROCESS ElementsPlan for Seaside Resorts Sales ObjectiveIncrease reserved summer rentals by 10% by February 15 CommunicationMake reservations by February 15 and save $100 off the weekly rate Target MarketFamilies living in California who spend one week or more at the beach every year 14

2.Determine the Budget – 4 methods…. What you can afford Percentage of sales (Sales x ___%) Competition matching (Frosty’s spends same as Dairy Queen) Objective and task (most effective) THE PLANNING PROCESS 15

3.Develop the Creative Strategy – how the company positions its brand or product in its advertising Strategic brief – members of the team write a short document that defines the target market and articulates the main message of the advertising….guides the rest of the process. THE PLANNING PROCESS 16

SELECTING THE MEDIA Reach (total number of people who see the ad) What is the overall circulation or viewership? Will it reach the target audience? Is there a strong pass-along rate? Frequency (# of times target audience members are exposed to ad) How often will the target audience see the advertising message? How many viewings does it take for the message to “stick”? After how many viewings does “wear-out” occur? Cost What is the total cost of the medium? What is the cost per viewer? Does the cost fit into the advertising budget? Is it the most effective use of advertising dollars? 17

SELECTING THE MEDIA Creative, Brand, and Corporate Fit Does the medium fit the message? Is the medium a good fit for the brand? Does the medium fit the company philosophy? Lead Time (amount of time required to place an ad) How long before running the advertising does the medium outlet require the ad materials? How flexible is this medium? Can the ad materials be ready by the medium’s deadline? 18

ADVANTAGES & DISADVANTAGES OF ADVERTISING MEDIA Radio Highly mobile Relatively low cost Short lead time Highly segmented markets Message limited to audio Strong potential for interference from other sources Television Reaches large audiences Low cost per viewer Has emotional impact Highly segmented markets High total cost Long lead time Strong potential for interference from other sources 19

ADVANTAGES & DISADVANTAGES OF ADVERTISING MEDIA Direct Mail Highly segmented Easy to measure effectiveness Stimulates action Hidden from competition Often considered junk mail Expensive Outdoor Low cost High visibility Short lead time Increasingly regulated Message length is limited Strong potential for interference from other sources 20

ADVANTAGES & DISADVANTAGES OF ADVERTISING MEDIA Newspapers Short lead time Large circulation Can carry response vehicles (coupons) Inexpensive Lower print quality Short life Limited segmentation High clutter (competing ads) Magazines Long life span Can carry response vehicles (coupons, response cards) High pass-along rate Highly segmented High cost Long lead time 21

ADVANTAGES & DISADVANTAGES OF ADVERTISING MEDIA Internet Highly targeted Instantly measurable Built-in response vehicles Interactive Limited audience High clutter (competing ads) Security and privacy concerns 22

ADVERTISING EXECUTION & EVALUATION SECTION 3: 23

List the things you like and dislike about the following ads:

Common creative formats used: Musical (jingle, famous musicians) Dramatization (make it feel real) 2B91A 2B91A index=10 index=10 Testimonial (celebrities, everyday people) VuCf0VatUkPXkp VuCf0VatUkPXkp Comedy Image advertising – evokes a mood or image of a brand Product demonstration CREATIVE DEVELOPMENT 25

Top 10 Business Logos Top 10 Hidden Meanings In Famous Logos Famous Logos With Hidden Meanings 10 Hidden Messages In Famous Logos 26

10 Companies That Will Disappear In Coolest Marketing Campaigns and Ideas Ever 27

Creating and producing the advertising begins with the strategic brief, a short document that defines the target market & articulates the main message of the advertising. PRODUCTION 28

Advertisers must evaluate campaigns to measure their effectiveness: Quantitative Research involves collecting data that can be classified into meaningful numeric values. Qualitative Research interprets the why and how of people’s opinions. GAUGING EFFECTIVENESS 29

Government agencies such as the Federal Trade Commission (FTC) and Federal Communications Commission (FCC) oversee all commerce and commercial communication in the United States. REGULATING ADVERTISING 30

When advertisers fail to meet their claims, there are a number of corrective measures that can be imposed by the FTC: Cease-and-desist Order – a legal order to discontinue the deceptive advertising. Corrective Ads – ads run to correct any false impressions left by the deceptive ads Fines – monetary penalties imposed on the offending company CORRECTIVE ACTIONS 31

Pulsing – advertisers increase their advertising efforts during a specific period….ie: toy companies at Christmas time Continuity – the ad will be regularly scheduled throughout the year… ie: car companies, beer companies, clothing store METHODS OF ADVERTISING 32