Advertising Direct Marketing U.S. advertising expenditures ($ millions) Types of Advertising • Product advertising - message focuses on a specific product • Institutional advertising - message focuses on activities, personality, or point of view of a company – advocacy advertising – public service advertisements (PSAs) Who Does Advertising? • 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 • Agencies – limited-service – full-service Alternative structures of advertising agencies used to carry out the advertising program The Body of Campaign Creation • • • • Account management (soul) Creative services (heart) Research and marketing services (brains) Media planning (legs) Developing the Campaign Identify the Target Market Establish Objectives: Message and Budget Design Ad Campaign Pretest Campaign Choose Media and Schedule Who is the Target Market? Successful campaigns speak to the target audience. Establish Objectives • Message goals (adverbials) • Budget – – – – Comparative parity % sales Objective-Task All you can afford Design the Ad • Creative strategy is the process that turns a concept into an advertisement • Creatives try to develop a “big idea” • Creatives: – art directors – copywriters – photographers Advertising Appeals • Reasons Why (USP) • Comparative Advertising • Demonstration • Testimonial • • • • • • Slice-of-Life Lifestyle Fear Sex Humor Slogans and Jingles Name that Brand! • • • • Double your pleasure, double your fun Good to the last drop My bologna has a first name…. I’d like to buy the world a _____ Pretest What Will Be Said • Copy testing measures ad effectiveness – Concept testing – Test commercials (with animatics or storyboards) – Finished testing Pretesting – Finished Testing • Jury Tests • Theater Tests • Portfolio Tests Choose the Media • Media planning is a problem-solving process for getting a message to a target audience in the most effective fashion – Where to say it – When to say it Television • Pros – – – – Creative and flexible Prestigious High impact messages Network TV is cost effective for reaching mass audience – Cable TV is good for reaching targeted group • Cons – Quickly forgotten – Requires frequent repetition – Increasingly fragmented audiences – High costs on an absolute basis – Shorter ads result in increased clutter Radio • Pros – – – – – Good for selective targeting Heard out of home Relatively low cost Can be modified quickly Uses listener imagination • Cons – Listeners may not pay full attention – Small audiences mean ads must be repeated frequently – Not appropriate for products requiring demonstration Newspapers • Pros – Wide exposure and extensive market coverage – Flexible format permits use of color, different sizes and editions – Useful for comparison shopping – Local retailers can tie in with national ads • Cons – Most don’t spend much time reading newspapers – Low readership among teens and young adults – Short life span – Very cluttered Magazines • Pros – Narrowly targeted audiences by specialized magazines – High credibility and interest level provide good ad environment – Long life span and pass along rate – Excellent visual quality • Cons – With exception of direct mail, the most expensive form – Long deadlines – Must use several magazines to reach target Outdoor • Pros – Very high reach – Low cost – Good for supplementing other media • Cons – Hard to communicate complex messages – Cannot demonstrate product effectiveness – Controversial and disliked Out-of-Home Media Billboards provide reach and grab attention! Direct Response • Pros – Ads can target extremely narrow audiences – Messages can be timed – Easy to measure effectiveness • Cons – High cost per exposure – Target lists must be constantly updated – Ads lack credibility among many consumers Innovative Media • Place-based media - transmit messages in public places • Guerilla marketing - use unconventional locations and intensive word-of-mouth campaigns to push products Internet Advertising • • • • Banners Buttons Sponsorships Search engine and directory listings • Pop-up ads • Email – permission marketing – spamming • Web site design Media Scheduling • Specifies the exact media to use for the campaign, when and how often the message should appear • Outlines the planner’s best estimate of which media and vehicles will be most effective in attaining campaign objectives Factors Affecting Media Scheduling • • • • Target market profile People reached by different vehicles Advertising patterns of competitors Capability of medium to convey desired information • Compatibility of product with editorial content Media Scheduling: How Often? • Continuous - steady stream throughout year • Pulsing - varies amount of advertising based on when product is in demand (e.g., suntan lotion) • Flighting - advertising appears in short, intense bursts alternative with period of little to no activity Media Schedule Evaluating Advertising • Posttesting means conducting research on consumers’ responses to advertising messages they have seen or heard – unaided recall – aided recall – attitudinal measures Evaluating Advertising • Post testing the advertising – – – – – Aided Recall (Recognition-Readership) Unaided Recall Attitude Tests Inquiry Tests Sales Tests • Making needed changes (feedback) Direct Marketing • Any direct communication to a consumer or business recipient that is designed to generate a response in the form of an order, a request for further information, and/or a visit to a store or other place of business for purchase of a product Forms of Direct Marketing • Mail order – Catalogs – Direct mail • Telemarketing • Multilevel sales • Direct response television – Infomercials – Home shopping networks M-Commerce • Promotional activities transmitted over mobile phones and other mobile devices such as personal digital assistants (PDAs) – Prevalent in Europe and Asia