Chapter Advertising. What is Advertising? Impersonal, one-way communication about a product that is paid for. Campaign: A series of related advertisements.
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What is Advertising? Impersonal, one-way communication about a product that is paid for. Campaign: A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals. Prius Campaign
Major Types of Advertising Enhance corporation’s identity Pioneering Competitive Comparative Product : Advertising: Focuses on benefits of a specific product or service Product : Advertising: Focuses on benefits of a specific product or service Institutional Advertising Institutional Advertising Advocacy advertising Trunk Monkey http://www.suburbanautogroup.com Dow Human ElementDow Human Element (Institutional) Bud Designated Driver
Product Advertising PioneeringPioneering Stimulates primary demand for new product or category Used in the PLC introductory stageCompetitiveCompetitive Influences demand for brand in the growth phase of the PLC Often uses emotional appeal ComparativeComparative Compares two or more competing brands’ product attributes Used if growth is sluggish, or if competition is strong Prius iPhone 3G Dunkin/Starbucks McCafeMcCafe Intervention Reminder: FedEx Schwab
Advertising Campaign A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals Online http://absolutads.com
Developing a Campaign 1.Set Objectives –Inform, persuade, remind? –Awareness, interest, desire, action? 2.Determine your budget 3.Make your creative choices –What are you going to say? –How are you going to say it? 4.Make your media choices –Where and how often are you going to advertise? 5.Evaluate: Did you do what you set out to do? Did you meet your objectives?
Determining Advertising Budgets Companies use a variety of criteria for setting advertising budgets: –What the company can afford –Percentage of sales –Advertising as much as the competition –Establishing particular objectives, developing a budget to meet objectives
Making Creative Decisions Positioning Statement: Setting the personality for the product in the minds of the consumer. Value Proposition: Central message; single, clear message why your product is better at solving the consumer’s problem. Attributes and Benefits (Appeal): Attribute that resonates with customers, differentiates from competition; Benefit explains why this is important to you the consumer. Execution Style: How the ad is put together; humor, music, celebrities, style, etc. What does this ad look like and feel like?
Attributes and Appeal (Benefits) Attribute APPEAL (Benefit) APPEAL (Benefit) “Powerade’s new line has been reformulated to combine the scientific benefits of sports drinks with B vitamins and to speed up energy metabolism.” So? “So, you’ll satisfy your thirst with a great-tasting drink that will power you throughout the day.”
Common Appeals Health and fitness Love or romance Fear Admiration Fun and pleasure Vanity Egoism Environmental consciousness Social responsibility Show the need or problem Others… Allstate Subway Theraflu
Execution Style Scientific Slice of life Demonstration Mood or image Lifestyle Testimonial Humorous (most popular execution style) Fantasy Musical Real or animated product symbols Samsonite UPS-Explanation Career Builder Bridgestone
Media Channels Traditional Media Newspapers Magazines Radio TV Outdoor Internet Alternative Media Shopping carts Screen savers DVDs/Video Games Mobile phone ads Blogs Tweets Stealth marketing Buzz marketing www.bzzagent.com
Media Selection Considerations Cost per Contact Cost per Contact Reach Impression The cost of reaching one member of the target market. Usually measured as CPM, or cost per 1000 contacts. The percent of a potential audience exposed to advertising one or more times during a given period. A single instance of an advertisement being delivered to and seen by an audience member. Usually expressed as thousands (000). A single instance of an advertisement being delivered to and seen by an audience member. Usually expressed as thousands (000). The number of times an individual is exposed to a message during a time period. Audience Selectivity Audience Selectivity The ability of an advertising medium to reach a precisely defined market. Frequency
Example Audience of kite boarders –1000 total in the country Advertise in “Kite Boarders Today Magazine” –Circulation= 750 paid subscriptions –Monthly publication New kite company places a one page ad for 12 months, costs $1000 per ad –Reach (monthly) = 75% –Frequency = 12 x per year (or 1x per month) –Impressions = 750 –If 200 subscribers passed the magazine along to someone else, impressions would increase to 950 –CPM = ($1000/750) * 1000 = $1,333.00 to reach 1000 people (see below)
Comparing Magazines: Which is the better buy? Time MagazineNewsweek Magazine Per page cost$156,000$144,000 Circulation4 million3.1 million Calculation of CPM (156,000/ 4,000,000)x1000 (144,000/ 3,100,000)x1000 CPM$39.00$46.45 CPM=Cost of ad per circulation x 1000
Media Scheduling Continuous Media Schedule Continuous Media Schedule Flighted Media Schedule Pulsing Media Schedule Pulsing Media Schedule Seasonal Media Schedule Seasonal Media Schedule Advertising is run steadily throughout the period. Advertising is run heavily every other month or every two weeks. Advertising combines continuous scheduling with flighting. Advertising is run only when the product is likely to be used.
Media Scheduling Scheduling: continuous flighted pulsing seasonal WinterSpringSummer Fall