Advertising and Promotional Management Exam 2 Review CHAPTER 7 primary goal is increased sales requires economic justification should produce quantifiable results Sales Objectives Communications Objectives increased brand knowledge interest favorable attitudes and image Immediate response not expected Goal is created favorable predispositions Sales Objectives are appropriate when efforts are direct in nature direct response advertising a sale or special promotion advertising plays dominant role in marketing program DAGMAR Approach model for setting advertising objectives and measuring results of a campaign against these objectives Define Advertising Goals for Measuring Advertising Results Awareness Comprehensio n Convition Action Pros of DAGMAR concentrate measures specified time period Cons of DAGMAR problems with response hierarchy only relevant measure is sales costly and time consuming inhibits creativity Marginal Analysis but then they level off Profits are shown to be a result of gross margin advertising expense Sales Response Models economics model As advertising spending increases sales and gross margin also increase to point measurable tasks well defined audience benchmark Concave Downward Response Curve is based on the economic theory of the law of diminishing returns S Shaped Response Function there incremental values to be gained from increased advertising but only to appoint Budget Approaches Top Down Budgeting top management sets the spending limit promotion budget set to stay within spending limit Bottom Up Budgeting Promotion objectives are set activities needed to achieve objectives are planned Costs of promotion activities are budgeted Total promotion budget is approved by top management Bottom Up Budgeting is what we are going to accomplish what is gong to take to get a certain level of awareness also called build up approach Top Down Budgeting Methods Top Management Build Up Approaches bottom up Competitive parity budgets set by matching of advertising to sale ration of competitors Percentage of Sales budget is based on the sales of the product Objective Task Method define communications objectives to be accomplished determine specific strategies and tasks needed to attain them estimate costs associated with performance of these strategies and tasks Objective Task Method is a build up approach Payout Planning is a build up bottom up approach Share of Voice Effect The percentage of advertising messages in a medium by one brand among all messages for that product or service AwarenessComprehensionConvitionAction CHAPTER 8 Creative Strategy determining what the advertising message will say or communicate Creative Tactics determining how the message strategy will be executed Advertising Creativity he ability to generate fresh unique and appropriate ideas that can be used as solutions to communication problems Divergence Entertaining originality flexibility elaboration synthesis and artistic value Relevance extent to which ad is meaningful or useful Ad to consumer brand to consumer Poets are proponents of creativity good advertising makes an emotional connection with Creative Advertising consumers Hard Sell Advertising suits are rationalist salesmen advertising must sell the product use selling points and information Young s Creative Process 1 2 Digestion take the information work it over wrestle with it in your mind Incubation turn the information over to the subconscious to do the work 3 Illumination Eureka I have it phenomenon 4 5 Verification Study the idea evaluate it reshape it for practical usefulness focus groups interviews what do you think Immersion get raw material and data and immerse yourself in the problem Qualitative Research Input Storyboards series of drawings used to present the visual plan or layout of a commercial Animatics more realistic storyboard video of storyboard w audio soundtrack Major Selling Idea aka big idea Finding the inherent drama Use a unique selling position Positioning Create a brand image Unique Selling Proposition USP develop a strong memorable identity for the brand through image advertising How you use it to Benefit buy this product service and you get this benefit Unique must be unique to this brand or claim rivals cant or don t offer it promise must be strong enough to move mass millions Potent Creating a brand image create image advertising use associations to some cultural symbols and cultural meanings EX think jewelry tiffany s vs Kay Jewelers Inherent Drama messages generally presented in a warm emotional way Focuses on consumer benefits with an emphasis on the dramatic element Ex ASPCA Maxwell House perfume MasterCard priceless Positioning establish a particular place in the customer s mind for the product or service Based on product attributes benefits price quality use or application type of user or problem solved Ex Quaker state positions targeting car enthusiast who changes own oil vs Penz Oil protect your engines go get it done as for this type of oil CHAPTER 9 Advertising Appeals the approach used to attract the attention of consumers To influence consumer feelings toward a product service or cause Execution Style The way an appeal is turned into an advertising message and the message is presented to the consumer Informational Rational Appeals Feature focus on the dominant product traits Competitive Advantage makes comparisons to other brands Price makes price offer the dominant point News news announcement about the product Popularity stresses the brands popularity Emotional Appeals Personal safety security fear love affection happiness joy nostalgia sentiment excitement sorrow and grief Social Based recognition status respect involvement embarrassment affiliation rejection acceptance approval Ad Execution Techniques 1 Straight sell or Factual Message straightforward presentation of information about the product or service such as specific attributes or benefits 2 Scientific technical Evidence a variation of the straight sell where scientific or technical evidence or information is presented in the ad to support a claim Ex clinically proven to reduce signs of aging 3 Demonstration designed to illustrate the key advantages or benefits of a product or service by showing it in actual 4 Comparison direct or indirect comparison of a brand against the competition 5 Testimonial a person speaks on behalf of the product or service based on his or her personal use of and or use or staged situation experiences with it 6