Advertising Strategy

Review the Objective Setting Process for Advertising Appreciate the factors that promote creative and effective advertising Review alternative creative strategies that play a role in the development of advertising messages Describe the role of corporate image and issue advertising

The Role for Advertising What do we wish to achieve? How do we expect to achieve it? Who are we talking to?

The Role of Objectives Expression of Consensus Objectives guide subsequent decisions regarding budgeting, message and media Provide standards against which results can be measured

Setting Good Objectives Include precise statement of who, what and when Be quantitative and measurable Specify the amount of change

Market Penetration vs Brand Frequency Greater Usage Trial Awareness Reinforce Behaviour Re-consideration

Immediate Response vs Longer/Broader Response Modify Attitudes “New News” Propaganda Reinforce Attitudes Remind

New Consumers vs Existing Consumers Infrequent Users Non-Users Unawares Loyalists Lapsed Users

Specific Objectives: Product Launches Facilitate introduction of new brands Inform trade and consumers about brand Build brand or company image Generate Sales Leads Persuade trade to stock brand Stimulate point of purchase sales Let consumers know where to buy a new brand

Specific Objectives: Existing Brands Build sales of existing brands by increasing frequency of use, variety of uses, or quantity purchased Inform trade and consumers about brand improvements Build brand or company image Generate Sales Leads

Specific Objectives: Existing Brands Stimulate point-of-purchase sales Develop brand awareness and acceptance Increase customer loyalty Counter attack competitor activity Provide reasons for buying now – rather than delaying a purchase choice

Specific Objectives: Corporate Advertising Improve corporate relations with special interest groups Offset bad publicity about a brand Generate good publicity

Absolut’s Classic Advertising

Bud Light Spuds MacKenzie campaign Budfrogs Louie and Frank Consumers go to great lengths to get a Bud Light

Budweiser Frogs & Lizards Whassup?

Guinness Anticipation

What Makes Effective Advertising? Sound Strategy Consumer’s View Persuasive Doesn’t Overwhelm Deliver on Promises Break Clutter Effective Advertising

Alternative Styles of Creative Advertising Innumerable ways to develop creative advertising MOA (ELM) should be considered Several categories have been identified over the years –Functional Orientation –Symbolic/Experiential Orientation –Category-Dominance Orientation Not mutually exclusive

Enhancing Consumer Information Processing MotivationAbility Opportunity

Enhancing Processing Motivation Attend to the message Appeal to hedonic needs Using novel stimuli Use intense cues Heighten ad complexity Process brand info Increased relevance of brand Increased curiosity about brand

Enhancing Opportunity Encode information Repeat brand information Repeat key scenes Repeat the ad Reduce processing time Using picture and imagery

Enhancing Ability Access knowledge structure Provide a context Create Knowledge structure Facilitate example- based learning

Alternative Creative Strategies Unique Selling Proposition Superiority claims based on unique physical feature or benefit Definition Most useful when point of difference cannot be readily matched by competitors Conditions May force competitors to imitate or choose more aggressive strategy Competitive Implications

Alternative Creative Strategies USP USP creative strategy

Alternative Creative Strategies Rosser Reeve’s USP Rosser Reeves’s –(former Chair of Ted Bates) –Unique Selling Proposition (USP) Ted Bates agency –Each ad must make a proposition (buy this product and get this benefit) –The proposition must be one that the competition cannot or does not offer –The proposition must be strong enough to pull new customers to your product

Alternative Creative Strategies Rosser Reeve’s USP M & M –Melts in your mouth, not in your hands

Alternative Creative Strategies USP USP creative strategy

Alternative Creative Strategies USP USP creative strategy

Alternative Creative Strategies Brand Image Claims based on psychological differentiation, usually symbolic association Definition Best for homogeneous good where differences are difficult to develop; easily duplicated Conditions Most often involve prestige claims; rarely challenge competition directly Competitive Implications

Alternative Creative Strategies Ogilvy’s Brand Image David Ogilvy’s Brand Image Ogilvy & Mather –Consumers buy physical and psychological benefits, not products –Thus advertising should be a long-term investment in the development and retention of a brand image

Alternative Creative Strategies Ogilvy’s Brand Image Marlboro Man

Alternative Creative Strategies Brand Image Creating a brand image for Diet Coke

Alternative Creative Strategies Brand Image Evian Natural Spring Water

Alternative Creative Strategies Brand Image Evian Natural Spring Water “Another day, Another chance to feel Healthy”

Alternative Creative Strategies Resonance Attempts to evoke stored experiences of prospects to endow product with relevant meaning or significance Definition Best for socially visible goods; requires considerable consumer understanding to design messages Conditions Few direct limitations on competitor’s options; most likely competitive response is imitation Competitive Implications

Alternative Creative Strategies Resonance

Alternative Creative Strategies E motional Attempts to provoke involvement or emotion through ambiguity, humor without strong selling emphasis Definition Best suited to discretionary items; effective use depends on competitor response Conditions Competitors may imitate to undermine strategy of difference or pursue other alternatives Competitive Implications

Alternative Creative Strategies Generic Straight product or benefit claim with no assertion of superiority Definition Monopoly or extreme dominance of product category Conditions Brand attempts to become synonymous with product category Competitive Implications

Alternative Creative Strategies P reemptive Generic claim with assertion of superiority Definition Growing or awakening market where competitive advertising is generic or nonexistent Conditions May be successful in convincing customer of superiority Competitive Implications

Alternative Creative Strategies Burnett’s Inherent Drama Leo Burnett’s Inherent Drama –Find the drama in a product –Identify the reason why the manufacturer makes the product –Identify the reason the consumer purchases the product

Alternative Creative Strategies Positioning Attempts to build or occupy mental niche in relation to competitor Definition Best for attacking a market leader; requires long term commitment Conditions Direct comparison limits options of named competitor; counterattacks offer little chance of success Competitive Implications

Alternative Creative Strategies Positioning –Advertising should be created to gain a perceptual foothold in the consumer’s mind by establishing something memorable and distinctive about the product relative to competition

Steps in Positioning 1.Identify the products competitors 1.Frame of reference 2.What are the alternatives: 1 st, 2 nd, 3 rd degree 2.Determine how consumers compares and evaluates products 3.Determine how all products are perceived in terms of the constructs determined in 2

Steps in Positioning Consumer comparisons and evaluations 1.Product Attributes 2.Usage 3.Users 4.Personality 5.Analogies

Steps in Positioning Determining how all competitors are perceived –Rate on dimensions defined –If many dimensions perceptual map may be useful –MDS for non-preselection of attributes

Choosing a position After analysis have: List of Dimensions Positions of Competitors relative to one another Ideal points and gaps

Choosing a Position Product attributes Price-quality relationship Use or application Product user

Choosing a Position Product category - Domestic versus Foreign wines Cultural symbols - Red, white, and blue Competitor - Avis positioning as # 2 Brand Personality

Reframing: Chaging the Map Change the frame of reference Change the competition: fighter brand

Great Tasting Alternative Creative Strategies: Values Low fatHealthy Self-respect Wisdom Many flavors Variety of choices Freedom (of choice) High quality Lack of self-control Happiness, Pleasure Healthy Choice Attributes ConsequencesValues

Alternative Creative Strategies: Values Value - Orientation 1. Value - Orientation The end-level (terminal or instrumental value) to be focused on in the advertising

Universal Values 1.Self-Direction 2.Stimulation 3.Hedonism 4.Achievement 5.Power 6.Security 7.Conformity 8.Tradition 9.Benevolence 10.Universalism Shimp, Functional 2. Pleasure 3. Identity 4. Image 5. Admiration 6. Altruism Corstjens, 1990

Alternative Creative Strategies: Values Leverage Point 2. Leverage Point The manner in which the advertising will tap into, reach, or activate the key value, or end-level that serves as the advertisement’s driving force

Alternative Advertising Strategies: Values Laddering Identifying linkages between attributes, consequences and values

Corporate Advertising Two Forms Image advertising Issue or advocacy advertising

Corporate Image Advertising Company is the brand or product No call to action Company Identity and Image building

Discuss the Creative Strategy Energizer Batteries keep going, and going, and going… Like the drum- beating bunny that reinforces the argument