Chapter 17 Effects of Advertising In 2009 30 companies spent more than 1 bil 1 4 mil people work in various positions in advertising More than 100 companies spend over 300 mil annually on advertising o Advertising Response Function spending for advertising and sales promotion increases sales or market share but then produces diminishing returns Major Types of Advertising Institutional Advertising enhances company s image rather than promote a particular product o Advocacy advertising organizations express views on controversial issues Product Advertising touts the benefits of a specific good or service o Pioneering stimulates primary demand for new product or category Intro Stage o Competitive influences demand for brand emotional appeal Growth Stage o Comparative compares two or more competing brands product attributes Growth Stage if competition is strong Creative Decisions in Advertising Advertising Campaign series of related Advertisements focusing on a common theme slogan and set of advertising appeals DAGMAR approach o Define target audience o Define desired percentage change o Define the time frame for change Creative Decisions o Identify Product Benefits Sell benefits not attributes what s in it for me o Develop and Evaluate Advertising Appeals Unique Selling Proposition desirable exclusive and believable advertising appeal selected as the theme for a campaign o Executing the Message o Post Campaign Evaluation Media Decisions in Advertising Media Types o Newspapers Advantages geographic value and immediacy year round readership local tie in short lead time Disadvantages limited demographic limited color expensive Cooperative Advertising manufacturer and retailer split costs of advertising manufacturers brand o Magazines Advantages good reproduction demographic regional high pass along Disadvantages long term commitments slow build up lack of urgency long lead time o Radio Advantages low cost immediacy short notice portable entertainment carryover Disadvantages no visual short life high frequency background distraction commercial clutter o Television Advantages wide audience low cost immediacy demographic selectivity Disadvantages short life skepticism high campaign cost long lead times o Internet Advantages fast growing target audience moderate cost Disadvantages difficult to measure click through banner not everyone has internet Media Selection Considerations o Cost Per contact cost reaching one member of target market o Reach number of target consumers who are exposed to commercial once during period o Frequency times someone exposed to message Media Scheduling o Continuous advertising run steadily through period o Flighted advertising is run heavily every other month o Pulsing advertising combines continuous scheduling o Seasonal Advertising is run only when product is likely or two weeks with flighting to be used Public Relations Element in promotional mix that evaluates identifies executes programs for public Functions of PR Press relations product publicity corporate communication public affairs lobbying employee and investor relations crisis management PR Tools new product publicity product placement consumer education sponsorship company websites
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