module 6
Lucy Bell
Chapter12PowerPointSlidesmodule6.pptxChapter 12
Advertising
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Chapter 12 Learning Objectives
Recognize the differences between the two basic forms of advertising: product and institutional.
Describe the steps followed when developing an advertising campaign.
Know the alternative approaches to budget for advertising.
Understand the value of alternative media in developing an integrated advertising and marketing campaign.
Introduction
Advertising
Defined as directly paid form of nonpersonal presentation of goods, services, or ideas by an identified sponsor
Paid—distinguished from publicity
Nonpersonal—distinguished from personal selling
Learning Objective 1
Common classifications of advertising
Product advertising—focus on a particular product or service.
Competitive—try to generate selective demand for the organization’s service over that of competitors.
Help seeking—provide information.
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Learning Objective 1
Product advertising
Informational—used in introduction stage of new product
Reminder—most often used in maturity stage
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Learning Objective 1
Institutional advertising
Used to build goodwill and to enhance the public’s image of a particular organization
Pioneering—some introduce or announce openings
Some compare programs
Some advocate public policy position
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Learning Objective 2
Developing the ad campaign
Six steps
Define target audience.
Determine advertising objectives.
Determine budget.
Develop message.
Specify communication program.
Evaluate response.
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Learning Objective 2
Developing the ad campaign: steps
Step 1: Define target audience.
Specify the group to whom the organization is trying to communicate.
Includes demographics, psychographics
The more detailed this section, the easier subsequent sections will be.
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Learning Objective 2
Developing the ad campaign: steps
Step 2: Determine advertising objectives.
Facilitates consumers along hierarchy of effects
Awareness
Interest
Evaluation
Trial
Adoption
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Have students discuss the steps in the hierarchy of effects model.
Learning Objectives 2, 3
Developing the ad campaign: steps
Step 3: Determine budget.
Percentage of sales—fiscally sound, but flawed in relationship between advertising and sales
Competitive parity—prevents being out-impressioned in the marketplace by competitors, but assumes competitors’ goals are the same
All you can afford—could result in spending too little or too much on promotion
Objective and task*
Most appropriate way, marketer’s dream budget
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Have students discuss the different budgeting methods, pp. 325–327.
Learning Objective 2
Developing the ad campaign: steps
Step 4: Develop message.
Appeals
Rational—functional attributes
Emotional—fear and humor
Moral/social—focus on causes or issues
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Learning Objective 2
Developing the ad campaign: steps
Step 4: Develop message. (cont.)
Pretesting—assessing advertising copy options before their general use
Portfolio tests—testing alternative copy
Jury tests—shown to panel of consumers, usually one ad is shown
Theater tests—immediate feedback; done often in health care in less expensive form
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Have students discuss the different pretesting, pp. 318–319.
Learning Objective 2
Developing the ad campaign: steps
Step 5: Specify communication program.
Medium—the form of communication selected (print, broadcast, direct mail, outdoor)
Reach
Frequency
Waste
Vehicle—Advertising alternative chosen within each medium
Specific publications, stations
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Learning Objective 2
Developing the ad campaign: steps
Step 5: Specify communication program. (cont.)
Scheduling
Seasonal
Steady
Flighting
Concentration
Pulsing
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Discussion—each of the scheduling variations, p. 330.
Learning Objective 2
Developing the ad campaign: steps
Step 5: Specify communication program. (cont.)
Selecting the most cost-effective approach
CPM—cost per thousand: print
Cost per point—based on gross rating points: television
Digital media costing—cost per mille, cost per click, cost per action
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Learning Objectives 2, 4
Developing the ad campaign: steps
Step 5: Specify communication program. (cont.)
Selecting the right medium
Television
Radio
Newspaper
Magazines
Outdoor advertising
Direct marketing
Digital advertising (banner, button ads, pop-ups, email)
Streaming media
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Discussion—each of the media, pp. 333–336, advantages and disadvantages of each. (think-pair-share)
Learning Objectives 2, 4
Inbound marketing—effort to drive individuals to the organization’s website
Advertising is outbound
FIGURE 12-4 The Flow of Inbound Marketing Efforts
Mitch Fanning, “HubSpot’s Annual Review of Inbound Marketing,” (May 1, 2013)
http://www.fruitioninteractive.com/2013/05/inbound-marketing-review
Learning Objective 2
Developing the ad campaign: steps
Step 6: Evaluate response.
Posttesting—attitude tests
Broadcast—day-after recall
Print—aided or unaided recall
Direct mail—response rates
Internet—level of action
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Learning Objective 4
The Web 2.0 and social media
Blogging
Podcasts
Learning Objective 4
Working with ad agencies
Full-service agency—one-stop shopping
Boutique agency—limited range
Creative services
Media buying
Broker other services
Fees—commission or fee-based structure
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Summary
Advertising can take one of several forms; it can be product-based or institution-based.
The basis for an advertising campaign is the media plan, which is built on the definition of the target audience.
Advertising objectives are based on the hierarchy of effects model.
Advertising budgets are often derived on different bases. The most effective basis is an objective and task method.
Summary (cont.)
The creation of effective advertising copy requires pretesting of the message with a sample similar to the target audience.
In selecting the media for use in an advertising campaign, an organization often must make trade-offs between reach and frequency.
There are several patterns by which advertising exposures can be scheduled: steady, seasonal, or flighting.
Advertising media must be selected to minimize wasted coverage. Media choices can be compared on a cost-per-thousand or cost-per-point basis.
Summary (cont.)
Cable television has greatly reduced the cost of television advertising, while technological advances have affected both print and direct mail. Environmental constraints limit outdoor advertising.
Integrated advertising campaigns are required to coordinate traditional media campaigns with online campaigns.
Advertising agencies differ in the structure, fee, and range of services provided. In recent years, there is a trend to a fee payment system.
