Chapter 16 Advertising Public Relations and Sales Promotion 16 1 The Effects of Advertising Advertising response function a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns New brands spend more on advertising because of advertising response function and a certain minimum level of exposure is needed to measurably affect purchase habits Serious dramatic advertisements are more effective at changing consumers negative attitudes Humorous ads are more affective at shaping attitudes when consumers already have a positive image on an advertised brand Advertising can affect the way consumers rank a brand s attributes 16 2 Major Types of Advertising A firm s promotional objectives determine the type of advertising its uses Institutional advertising a form of advertising designed to enhance a company s image rather than promote a particular product o Advocacy advertising a form of advertising in which an organization expresses its views on controversial issues or responds to media attacks Product advertising a form of advertising that touts the benefits of a specific good or service advertising o A product s stage in its life cycle determines which type of product o Pioneering advertising a form of advertising designed to stimulate primary demand for a new product or product category used during introductory stage offers in depth information on the benefits of the product seeks to create interest o Competitive advertising a form of advertising designed to influence demand for a specific brand growth phase appeals to emotions branding o Comparative advertising a form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes products experiencing slow growth or those entering the marketplace against strong competitors 16 3 Creative Decisions in Advertising Advertising campaign a series of related advertisements focusing on a common theme slogan and set of advertising appeals Advertising objective a specific communication task that a campaign should accomplish for a specified target audience during a specified period o DAGMAR Defining Advertising Goals for Measured Advertising Results one method of setting objectives all advertising objectives should precisely define the target audience the desired percentage change in some specified measure and the time frame Identify product benefits o Goal sell the benefits of the product not the attributes Develop and evaluate advertising appeals o Advertising appeal a reason for a person to buy a product typically play off of consumers emotions or address some need want the consumer has o Common advertising appeals profit health fear admiration convenience fun pleasure vanity egotism environmental consciousness o Unique selling proposition a desirable exclusive and believable advertising appeal selected as the theme for a campaign Executing the message o The way an advertisement portrays its information o Common executional styles Slice of life depicts people in normal settings McDonalds Lifestyle shows how ell a product will fit in a consumer s lifestyle Spokesperson testimonial feature a celebrity Fantasy carmakers Humorous used in radio and TV advertising Real Animated product symbols energize bunny Mood or image Demonstration shows consumers the expected benefit laundry detergent Musical Post campaign evaluation Scientific used for print 16 4 Media Decisions in Advertising Medium the channel used to convey a message to a target market Media planning the series of decisions advertisers make regarding the selection and use of media allowing the marketer to optimally and cost effectively communicate the message to the target audience What type of medium will best communicate the benefits Newspapers o Advantages geographic flexibility and timeliness high individual market coverage short lead time o Disadvantages little demographic selectivity expensive o Cooperative advertising an arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer s brand Magazines selectivity o Advantages good reproduction demographic selectivity regional o Disadvantages long term commitments slow audience build up long lead time lack of urgency Radio o Advantages low cost immediacy of message selectivity and audience segmentation large of out home audience timeliness geographic flexibility o Disadvantages no visuals distractions from background sound commercial clutter TV messages o Advantages wide and diverse market low cost immediacy of o Disadvantages commercial clutter short life of message little demographic selectivity with network stations o Infomercial a 30 minute or longer advertisement that looks more like a TV talk show than a sales pitch Internet o Advantages low cost high target ability fast growing ability to reach a narrow target audience o Disadvantages not everyone has access to internet many not using social media have to click on ad o Advergaming placing advertising messages in web based or video games to advertise or promote a product service organization or issue Outdoor media flexibility o Advantages repetition moderate cost flexibility geographic o Disadvantages short message lack of demographic selectivity high noise level distracting audience Media selection considerations o Media mix the combination of media to be used for a promotional campaign o Cost per contact aka cost per thousand CPM the cost of reaching one member of the target market o Cost per click the cost associated with a consumer clicking on a display or banner ad o Reach the number of target consumers exposed to a commercial at least once during a specific period usually 4 weeks o Frequency the number of times an individual is exposed to a given message during a specific period o Audience selectivity the ability of an advertising medium to reach a precisely defined market 17 magazine for teens o Flexibility radio and internet are flexible can change ad on the day it is aired o Noise level level of distraction experienced by the target audience o Life span messages can either quickly fade or persist as tangible copy to be studied o Media fragmentation media planners must pay attention to where they place their advertising and to how much it is repeated Media schedule designation of the media the specific publications or programs and the insertion dates of advertising
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