advertising
a cost-effective way to disseminate messages, whether to build a brand preference or to educate people.
the five M’s
marketers can make five major decisions in developing an advertising program:
1. mission
2. money
3. message
4. media
5. measurement
informative advertising
aims to create brand awareness and knowledge of new products or new features of existing products.
persuasive advertising
aims to create liking, preference, conviction, and purchase of a product or service.
reminder advertising
aims to stimulate repeat purchase of products and services.
reinforcement advertising
aims to convince current purchasers they made the right choice.
factors to consider when setting the advertising budget
- stage in the product life cycle
- market share and consumer base
- competition and clutter
- advertising frequency
- product substitutability
creative strategy steps
- message generation and evaluation
- creative development and execution
- legal and social issues
open sourcing/crowdsourcing
using consumers as a creative team for message generation and evaluation. this strategy can cut costs dramatically.
television ads
reach a broad spectrum of consumers at a low cost per exposure, but the high volume of nonprogramming material on TV makes it easy for consumers to ignore the ad.
print ads
because consumers consume them at their own pace, magazines and newspapers can provide detailed information and effectively communicate their user and usage imagery, but the static nature of the visual images in print media makes the presentations or demonstrations difficult.
radio ads
main advantage is flexibility. also, is relatively inexpensive, but lacks visual images are therefore relatively passive in nature.
media selection
finding the most cost-effective media to deliver the desired number and types of exposures to the target audience.
effects of exposures on audience awareness
- reach (R): the number of people exposed to a particular media schedule at least once during a time period. most important when (a) launching new products (b) flanker brands (c) extensions of well-known brands, and (d) infrequently purchased brands or (e) when going after an undefined target market.
- frequency (F): number of times within the time period that an average person is exposed to the message. most important where there are (a) strong competitors (b) a complex story to tell (c) high consumer resistance or (d) a frequent-purchase cycle.
- impact (I): qualitative value of an exposure through a given medium.
place advertising/out-of-home advertising
a broad category including many creative and unexpected forms to grab consumers’ attention where they
work, play, and shop. eg. billboards, public spaces, product placement, and point of purchase (P-O-P).
point of purchase (P-O-P)
reaching consumers where buying decisions are made through ads on shopping carts, in-store demonstrations, and live sampling.
macroscheduling decision
in choosing media, an advertiser makes a macroscheduling and a microscheduling decision. the macroscheduling decision relates to seasons and the business cycle.
microscheduling decision
calls for allocating advertising expenditures within a short period to obtain maximum impact.
“burst” advertising
concentrated advertising instead of dispersed advertising.
choices when launching a new product
- continuity: even exposures throughout a period
- concentration: means spending the budget in one period
- flighting: advertising during a period, followed by no advertising, followed by a second period of advertising
- pulsing: continuous advertising at low levels, reinforced periodically by waves of heavier activity.
communication-effect research/copy testing
seeks to determine whether an ad is communicating effectively. should be performed before an ad is launched and after. a company’s share of advertising expenditures produces a share of voice that earns a share of consumers’ minds and hearts and ultimately a share of market.
sales impact can be measured using (1) the historical approach or (2) experimental data.
share of voice
proportion of company advertising of that product to all advertising of that product.
historical approach
using advanced statisitcal techniques to correlate past sales to past advertising expenditures.
consumer franchise-building promotions
a sales promotion tool that builds brand equity while moving product. it imparts a selling message along with a deal, such as free samples, frequency awards, coupons, and premiums.
