Advertising

Objective 1 – SWBAT describe advertising

Objective – SWBAT describe the major categories of advertising

What is Advertising? Advertising is a paid public

announcement to persuade consumers to buy a good or service.

Criteria: Message must be paid for Message must be delivered to the

audience by mass media Message must try to persuade audience of

some action or belief

Advertising Is A Marketing Tool

Advertising is an important part of a company's marketing process. The process includes

researching, pricing, promoting, selling, & distributing a good or service.

Ads & Marketing Design a Marketing Strategy

Used to promote & distribute a product Strategy includes:

Ads you see Things you don’t notice much

Warranties, Instructions, etc.

Ads tell the target audience about the value of the good or service. You, the consumer, must see the product’s value before spending $.

Ads & MarketingTarget the Consumer

Use demographics, geographics, psychographics

Contribute to revenue and profit earning

Use brand loyalty to keeps consumers coming back

Ads & Marketing

Enhance customer satisfaction Eliminate Cognitive Dissonance

Consumer is uncertain about purchase after making it.

Good ads reinforce the customer’s decision—satisfaction, loyalty, quality

Advertising in the Economy

Gross Domestic Product Measurement of the total value of goods and

services produced Derived Demand Ads help increase demand.

As demand increases, consumer spending increases in other areas

Advertising Impact--Consumer Behavior

Everything that affects or is affected by human consumption.

How consumer act is shaped by : Experience Dreams of the future Economic Level

Example Response What’s in it for me?

Consumers look for goods and services that provide benefit to them Functional—same for everyone

Objective benefits; easily measured Umbrella—keeps me dry

Emotional—good or service makes you feel proud or satisfied

Subjective benefits, difficult to measure This product makes me feel good

Major Categories of Advertising

Major Categories of Advertising

INSTITUTIONAL AD GOAL: to build up the image of

business 1.  Product-oriented 2.  Designed to establish, change, or maintain

corporation’s identity

3. Generally, asks audience to continue to like the business and its goods and services

4. Audience: businesspeople, opinion leaders,

          investment community, customers, employees

Major Categories of Advertising

PRODUCT AD GOAL: to promote benefits of a

specific good or service. 1. Designed to make consumer/customer aware of

goods and services

2. Audience—Consumers/Customers

Product life cycle can help businesses determine which type of ad to use.

Types of Ads

Brand Advertising Intention

Remember the brand rather than a specific product.

Good for companies that sell multiple products

Ad Types

Informative Advertising Intention

Teach you about the product’s benefits Good for products that the consumer does not

understand

Example—prescription medicines

Ad Types

Defensive Advertising Intention

Tells consumers why a comparative ad is incorrect.

Identifies benefits that are important to the customer/consumer.

Ad Types

Persuasive Advertising Intention

Show happy people using the product Implication—you will be happier, more glamorous,

more athletic, etc. They don’t talk about the products features &

benefits.

Ad Types

Pioneer Ad Intention

    intended to stimulate demand for a new product or category. ---seeks to create interest

Ad Types Competitive Ad

Intention influences demand for a specific brand

    Promotion less informative & starts to appeal more to emotions

    Subtle differences become stressed     Price becomes key

Ad Types

Comparative Ad Intention

    directly or indirectly compares two (2) or more competing brands on one or more specific attributes.

Ad Types     DAGMAR (Defining Advertising

Goals for Measured Advertising Results)

Intention All advertising objectives should

precisely define the target audience, the desired percentage change in some specific measure of effectiveness, and the time frame in which that change is to occur.

Example of an DAGMAR Ad

Toyota Camry sets an objective: increase over the next 2 years by 12 percent the number of potential 25-to-30 year-old Camry buyers exposed to Camry ads.

Advocacy Advertising Intention

    Corporations to express their views on controversial issues, reactions to criticism or blame, handle damaging publicity

Ad Types

Example of an Advocacy Ad

R. J. Reynolds—Non-smoker declares: “The smell of cigarette smokes annoys me, but not as much as the government telling me what to do.”

Values & Advertising

Image Control Advertisements reflect 2 different visions of

yourself As you really are As you wish you were

How Do You Compare? Companies want you to see yourself

using their products Individuals in Ads are usually portrayed

as people wished they looked. Most models weight 23% less than

average people The average man is 5’9” Disabled people are rarely seen in ads Ethnically mixed groups are infrequently

shown

What Do Ads Provide?

Objective – SWBAT understand what ads offer

Ads Provide Information

Advantage Ads Educate

Consumers Consumers

Rights & Responsibilities Act

They buy better products

They pay lower prices

The spend less time shopping

Ads Provide Information

Disadvantage Ads are biased Ads primary purpose is to

convince you to buy a product.

Most ads contain little “raw” information

Ads Raise the Standard of Living

Advantage Ads make products cheaper

Ads help company sell more itemsIf company does well, they can put more $

into making a better product. Ads stimulate demand and keeps you

informed about new products.

Standard of Living--minimum level of necessities & luxuries required to keep an individual group at a common level of comfort.

Ads Raise the Standard of Living

Disadvantage Ads only raise the standard of living for

some.

Ads do not raise your income•If you can’t afford a product, ads won’t help you.

•Ads may widen the gap between the rich & poor

Ads & Society Advantage

Ads Reflect Society’s Priorities

Advertising promotes the “good life.” The good life is full of glamour, romance, & good

friends

Ads give you something to dream of & work toward

Advertising Campaign

A series of related

advertisements focusing

on a common theme, slogan,

and set of advertising

appeals.

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Steps in Creating an Advertising Campaign

Determine the advertising objectives.

Make creative decisions. Make media decisions.

Evaluate the campaign.

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Setting Objectives:The DAGMAR Approach 33

Define Target Audience

Define Target Audience

Define DesiredPercentage

Change

Define DesiredPercentage

Change

Define the Time Frame for Change Define the Time

Frame for Change

Goal ofGoal ofAdvertising Advertising ObjectivesObjectives

Goal ofGoal ofAdvertising Advertising ObjectivesObjectives

Creative Decisions 33

Componentsof

Creative Decisions

Componentsof

Creative Decisions

Develop and EvaluateAdvertising Appeals

Develop and EvaluateAdvertising Appeals

Execute the Message

Execute the Message

Evaluate theCampaign’s Effectiveness

Evaluate theCampaign’s Effectiveness

Identify Product Benefits

Identify Product Benefits

Identify Product Benefits 33

“Sell the Sizzle, not the Steak”

Sell product’s benefits, not its attributes

A benefit should answer “What’s in it for me?”

Ask “So?” to determine if it is a benefit

Advertising Appeal 33

Reason for a person

to buy a product.

Common Advertising Appeals 33

Profit Profit

HealthHealth

Love or romanceLove or romance

FearFear

AdmirationAdmiration

ConvenienceConvenience

Fun and pleasureFun and pleasure

Vanity and egotism Vanity and egotism

Environmental ConsciousnessEnvironmental Consciousness

Product saves, makes, or protects money Product saves, makes, or protects money

Appeals to body-conscious or health seekersAppeals to body-conscious or health seekers

Used in selling cosmetics and perfumesUsed in selling cosmetics and perfumes

Social embarrassment, old age, losing health Social embarrassment, old age, losing health

Reason for use of celebrity spokespeopleReason for use of celebrity spokespeople

Used for fast foods and microwave foodsUsed for fast foods and microwave foods

Key to advertising vacations, beer, parksKey to advertising vacations, beer, parks

Used for expensive or conspicuous items Used for expensive or conspicuous items

Centers around environmental protectionCenters around environmental protection

Unique Selling Proposition 33

Desirable, exclusive, and

believable advertising appeal

selected as the theme for a

campaign.

Executing the Message

Mood or Image

Mood or Image

MusicalMusical

Demon-stration

Demon-stration

ScientificScientific

Real/AnimatedProductSymbols

Real/AnimatedProductSymbols

FantasyFantasy

LifestyleLifestyleSlice-of-LifeSlice-of-Life

HumorousHumorous

CommonCommonExecutionalExecutional

StylesStyles

CommonCommonExecutionalExecutional

StylesStyles

Spokes-person/

Testimonial

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Media Selection Considerations

Cost per ContactCost per Contact

FactorsInfluencingMedia Mix Decisions

FactorsInfluencingMedia Mix Decisions

ReachReach

FrequencyFrequency

Audience SelectivityAudience Selectivity

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Media Selection ConsiderationsCost perCost perContactContact

Cost perCost perContactContact

ReachReachReachReach

FrequencyFrequencyFrequencyFrequency

AudienceAudienceSelectivitySelectivityAudienceAudienceSelectivitySelectivity

The cost of reaching one member of the target market.

The cost of reaching one member of the target market.

The number of target consumers exposed to a commercial at least

once during a time period.

The number of target consumers exposed to a commercial at least

once during a time period.

The number of times an individual is exposed to a message during a

time period.

The number of times an individual is exposed to a message during a

time period.

The ability of an advertising medium to reach a precisely

defined market.

The ability of an advertising medium to reach a precisely

defined market.

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Media Scheduling

Types of Types of Media SchedulesMedia Schedules

Types of Types of Media SchedulesMedia Schedules

Continuous Media ScheduleContinuous Media Schedule

Flighted Media ScheduleFlighted Media Schedule

Pulsing Media SchedulePulsing Media Schedule

Seasonal Media ScheduleSeasonal Media Schedule

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Learning Objective

Discuss the role of public relations Discuss the role of public relations in the promotional mix.in the promotional mix.

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Public Relations 55

Evaluates public attitudes

Evaluates public attitudes

Identifies issues of public concernIdentifies issues of public concern

Executes programs to gain

public acceptance

Executes programs to gain

public acceptance

The Role of The Role of Public RelationsPublic Relations

The Role of The Role of Public RelationsPublic Relations

Functions of Public RelationsPress Relations Press Relations Press Relations Press Relations

Product PublicityProduct PublicityProduct PublicityProduct Publicity

Corporate CommunicationCorporate CommunicationCorporate CommunicationCorporate Communication

Public AffairsPublic AffairsPublic AffairsPublic Affairs

LobbyingLobbyingLobbyingLobbying

Employee and Investor RelationsEmployee and Investor RelationsEmployee and Investor RelationsEmployee and Investor Relations

Crisis ManagementCrisis ManagementCrisis ManagementCrisis Management

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Public Relations Tools

ToolsToolsUsed ByUsed By

PRPRProfessionalsProfessionals

ToolsToolsUsed ByUsed By

PRPRProfessionalsProfessionals

Product PlacementProduct Placement

Consumer EducationConsumer Education

Event SponsorshipEvent Sponsorship

Issue SponsorshipIssue Sponsorship

Internet Web SitesInternet Web Sites

New Product PublicityNew Product Publicity

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Managing Unfavorable Publicity 55

A coordinated effort to handle

the effects of unfavorable

publicity or of an unfavorable

event.

CrisisCrisis

ManagementManagement

Ads & Society Disadvantage

Advertising Promotes Materialism Ads promote products as symbols of

status & success

Can be harmful to society You might choose to get a high salary

rather than working in a job that will fulfill you personally.

Ads Affect Mass Media

Advantage Ads Supports a Variety of Mass Media 2000 U.S. Advertisers spent $198 billion

$ spent on ads give you low-cost access to a variety of information & entertain providers

Example - Radio & TV

Ads Affect Mass Media Disadvantage

Ads Affect the Information Available

Advertisers can withdraw their ads from the media vehicle

Small publications can go out of business if a large advertiser withdraws support.

Programs that tackle controversial topics could have trouble attracting advertisers