Document Sample
Advertising Powered By Docstoc
					Marketing - Advertising
                  Definition of advertising

  • Any paid form of non personal presentation and
    promotion of ideas, goods and services through
    mass media such as newspapers, magazines,
    television or radio by an identified sponsor.
  • Advertising is mass, paid for communication which
    is used to transmit information, develop attitudes
    and induce some form of response from the

Marketing - Advertising
            Characteristics of advertising

  • Non personal form of communication aimed at a
    target audience.
  • Used by commercial and by not for profit
  • Advertising is paid for.
  • Most advertising is concerned ultimately with
  • It is a major element in the promotional mix.

Marketing - Advertising

  • An advertising objective is a specific
    communication task to be achieved with a specific
    target audience during a specified period of time.
  • Like all objectives they should be SMART.
  • In essence the main advertising objectives are:
      – To inform- to provide information about a product
      – To persuade- to persuade people to buy
      – To remind- to remind people about a mature product

Marketing - Advertising
                 Inform, persuade, remind

  Inform                    Persuade                 Remind
  To provide information.   To persuade              To remind customers
  Used especially with a    customers to buy a       about a product they
  new or complex            particular brand.        might other overlook
  product.                  Stress the distinctive   Advertising a mature
  Print media is superior   features of the brand.   product.
  to TV for this type of    Minimal information.     Examples:
  advertising.              Examples :               Corn Flakes
  Examples:                 Perfumes                 Kit Kat
  Insurance                 Cars
  Financial products        Coca Cola
  New electrical goods

Marketing - Advertising
                          Possible objectives

  •   To raise awareness of the product
  •   To communicate the benefit of the product
  •   To generate leads for the sales force
  •   To encourage prospects to buy directly through a
      direct response campaign
  •   To persuade prospects to switch brands
  •   To support a special marketing event
  •   To ensure that customers know where to obtain
      the product
  •   To build confidence in the organisation

Marketing - Advertising
                   Summary of objectives

  • To create awareness          • To increase market share
  • To inform                    • To differentiate from rivals
  • To remind customers          • To encourage trial
  • To reassure customers        • To build brand loyalty
  • To offset advertising by     • To encourage brand
    competitors                    switching
  • To support the sales force   • To change attitudes
  • To persuade                  • To support activities in the
  • To promote ideas/              distribution chain
    attitudes/ causes

Marketing - Advertising
                      Types of advertising

  •   Informative - provides information.
  •   Persuasive - to encourage brand switching.
  •   Reminder - to remind about a mature product.
  •   Reinforcement - to reassure.
  •   Pioneering - to introduce new product.
  •   Competitive - to point out differential advantages.
  •   Defensive - to reduce damage caused by
      campaign of a direct competitor.

Marketing - Advertising
    Institutional or corporate advertising

  • Seeks to promote corporate identity, image and
  • There is distinct PR element in this form of
  • This type of advertising is not about individual
    products the company offers.
  • The product is not mentioned.
  • Used by large companies, especially multinational
    companies. e.g. ICI, BP
  • BP promotes itself an energy company rather than
    a petroleum company.
Marketing - Advertising
              Direct response advertising

  • The use of prime media to elicit an order,
    enquiry or request a visit.
  • Direct response television advertising invites
    consumer to phone in to place an order (e.g.
    some music CDs are promoted in this way)
  • QVC and other shopping channels are
    involved in DRTVA.
  • The print media is also used- coupons cut
    out of the page and inserts are means to
    invite people to respond
Marketing - Advertising

  Advertising should seek to:

  A - increase awareness
  I - create interest
  D - develop a desire
  A - encourage consumers to buy.

  Advertising seeks to move potential buyers
   through these stages
Marketing - Advertising
   Advertising and the product life cycle

 Product life             Advertising   AIDA        Objectives

 Introduction             Informative   Attention   Increase in
                                        Interest    sales
 Growth                   Persuasive    Desire      Increase
 Maturity                               Action      market share

 Saturation               Reminder      All four    Corporate
 Decline                                            image

Marketing - Advertising
      Developing an advertising campaign

  •   Set the advertising objectives.
  •   Define target market.
  •   Determine the advertising budget.
  •   Determine the key advertising message.
  •   Decide which media to use.
  •   Plan campaign timing.
  •   Evaluate the results of the campaign.

Marketing - Advertising
                          5 Ms of advertising

  •   Mission - objectives.
  •   Money - to pay for the campaign.
  •   Message - to be delivered.
  •   Media - choice of advertising media.
  •   Measure - measuring the impact.

Marketing - Advertising
                  Determining the budget

  • The advertising budget will be set in terms of
    one of:
  • What can be afforded
  • A given % of sales
  • Comparison with rivals
  • Objective and task- whatever is needed to
    achieve objectives

Marketing - Advertising
      20 biggest UK spenders on advertising
  •   Unilever             •   Vauxhall
  •   Procter and Gamble   •   Ford
  •   COI Communications   •   Tesco
  •   L'Oreal Golden       •   Renault
  •   BSkyB
                           •   Kellogg
  •   DFS
  •   Master foods         •   Lloyds TSB
  •   Orange               •   Sainsbury
  •   BT                   •   Vodafone
  •   Nestle               •   O2
  •   Reckitt Benckiser    •   (Source Neilsen Media
                               Research, The Times

Marketing - Advertising
                Some big spenders (2005)

    UK advertiser         UK spend    Main medium
    Unilever               £214m        TV- £109m
    L'Oreal Golden         £103m         TV-£64m
    BSkyB                  £98m        Press-£32m
    Orange                 £76m          TV-£24m
    BT                     £73m          TV-£28m
    Tesco                  ££62m         TV-£31m
    Lloyds TSB             £53m      Direct mail-£36m
    Marks and Spencer      £44m          TV-£25m

Marketing - Advertising

  • An advertising message translates a
    company’s basic selling proposition into
    words, symbols and illustrations that are
    attractive and meaningful to the target
  • The message must be
      – meaningful
      – distinctive
      – believable

Marketing - Advertising
      Some famous advertising slogans.

  • Guinness is good for you (Guinness, 1929)
  • A diamond is forever (De Beers, 1948)
  • Schhh….You Know-Who (Schweppes. 1962)
  • Put a tiger in your tank (Esso 1964)
  • Beanz Meanz Heinz (Heinz, 1967)
  • Probably the best beer in the world
  • Heineken refreshes the parts other beers cannot
    reach (Heineken, 1974)
  • The world’s favourite airline (BA, 1983)
  • Vorsprung durch technik (Audi,1984)

Marketing - Advertising
                          Advertising Media

Marketing - Advertising
                   Main advertising media

  •   Print media - newspaper and magazines
  •   Television
  •   Radio
  •   Cinema
  •   Outdoors (billboards)
  •   Internet

Marketing - Advertising
           Factors in the choice of media

  • Marketing mix           • Permanence of the
  • Relative Cost             media
  • Target audience         • The nature of the
  • Impact of the media       product
  • Reach and selectivity   • Size and spread of the
    of the media              market
  • Competition             • Advertising budget
  • Legal constraints       • The message to be

Marketing - Advertising
               AIMRITE - choice of media

  • Audience - does it reach the target audience?
  • Impact - does it have the impact to ensure the
    message has a chance of getting through?
  • Message - does it ensure the message is clearly
  • Response - does it make responding easy?
  • Internal management - does it enhance the
    efficient management of the campaign?
  • The End response - costs and projected likely

Marketing - Advertising

  • Advantages                   • Disadvantages
  • Large audience               • Very high overall cost
  • Low cost per exposure        • Limited prime time space
  • High impact- colour, sound   • Short-lived
    and movement                 • May not be watched-
  • Can target specific groups     visual wallpaper
                                 • Proliferation of channels
                                   reduces audience
                                 • Conveys only a limited

Marketing - Advertising

  • Advantages               • Disadvantages
  • Relatively inexpensive   • Limited impact
  • Can target specific      • No vision
    segment                  • Short life
  • Relatively mobile        • Listener’s attention
  • Local                      limited
                             • Audio wallpaper
                             • Mainly local rather
                               than national

Marketing - Advertising

  • Advantages                  • Disadvantages
  • Widely read                 • Short life
  • Can target specific         • Low impact
    segments                    • May get lost in the rest of
                                  the paper
  • Frequent publication
                                • Not every group reads a
  • Short lead time               paper
  • Inexpensive compared to     • High costs especially for
    television                    national newspaper
  • Local, regional and
    national papers available
  • Colour printing adds to

Marketing - Advertising

  • Advantages                  • Disadvantages
  • Useful for targeting        • Can be expensive
    specific groups             • Long lead time
  • Good reproduction- high     • Some magazines are only
    quality gloss images          published monthly
  • Long life-read at leisure   • Moderate impact
                                • Slow impact due to long
  • Can be linked to features     life
  • All consumer interests      • Magazines with limited
    catered for                   readership are not suitable
                                  for mass marketing

Marketing - Advertising

  • Advantages               •   Disadvantages
  • High impact              •   Limited audience
  • Captive audience         •   Mainly young audience
  • Can be specifically      •   Short lived message
    targeted                 •   May only be seen once
  • Local audience
  • Visual, sound,

Marketing - Advertising
                      Outdoor (Billboards)

  • Advantages                  • Disadvantages
                                • Message must be short
  • Repeatedly seen               and simple
  • 24/7 coverage               • Cannot target socio
                                  economic groups
  • Target particular area
                                • Rarely attract full attention
  • May encourage               • Short lived
    impulse buying if close     • May be seen as traffic
    to shops                      hazard
  • Local media                 • Difficult to measure

Marketing - Advertising
                 Advertising on transport

  •   Advantages             • Disadvantages
  •   Low cost               • Harder to target by
                               socio-economic class
  •   Target certain areas
                             • Quick results unlikely
  •   Captive audience
                             • Difficult to measure
  •   Reaches wide diverse     effectiveness
      audience               • Rarely gains reader’s
                               full attention
                             • Space for only a short

Marketing - Advertising

  • One of the fastest growing advertising media.
  • Can target particular groups according the site a
    customers is on.
  • Can use moving images as well as written
  • Can be saved by the consumer.
  • Allows direct link to the product.
  • BUT not used by all potential groups of customers.
  • Customers may see the advertisements as in the
    way of what they really need from an internet site.
  • Can be expensive to set up.

Marketing - Advertising
               Advertising on the Internet

  • Paid-for search inclusion (e.g. Google Adwords)
  • Company website.
  • Banner ads - on line adverts on relevant website.
  • Link exchange- mutual exchange of links between
    web sites or similar or complementary interest.
  • Search engine/directory listing.
  • Ezine/email sponsorship- on line magazines
    delivered to subscribers via email.

Marketing - Advertising
                          Internet advertising

  •   Advantages                    • Disadvantages
  •   Cheap                         • Problems of
  •   Easy to set up                  connecting
  •   Easily updated                • Limited audience
  •   Number of hits can be         • Technical problems
      monitored-useful              • Banner adverts not
      measure of                      very effective
      effectiveness                 • Search engine listing
                                      can be costly (e.g.
                                      click fraud)
Marketing - Advertising
      Evaluating effectiveness of advertising

  •   Judge in relation to the objectives
  •   Did the advert achieve its objectives?
  •   Is it cost effective?.
  •   Here the question to be asked is whether or
      not the objectives were achieved at the
      lowest possible cost.

Marketing - Advertising
          Efficiency/effectiveness matrix

                          Efficient         Inefficient

    Effective             Achieves          Effective but more
                          objectives at     costly than it
                          lowest possible   needed to be

    Ineffective           Inexpensive but   Expensive but did
                          objectives not    achieve objectives

Marketing - Advertising
                Advertising effectiveness

  • The effectiveness of advertising is expressed in
    terms of its ability to meet its objectives.
  • If sales increased profit and sales are the aims,
    then effectiveness is measured in terms of the
    return on investment in advertising spending.
  • If competitive defence is the main aim it is
    measured in terms of maintenance in indicators of
    competitive position (e.g. market share)

Marketing - Advertising
                     Advertising elasticity

  • A measure of the responsiveness of
    demand to an advertising campaign.
             %change in quantity sales
           %change in advertising spend
  • If a 10% rise in advertising spending is
    followed by a 20% rise in demand or sales
    then advertising of elasticity is 2
  • But can we be sure that sales rose because
    of the increased advertising?

Marketing - Advertising
  Measures of advertising effectiveness

  • Advertising awareness - the ability of a
    consumer to remember a particular advertisement.
  • Advertising coverage - the % of the target market
    who have at least one opportunity to see an
    advertisement during a campaign
  • Advertising share of voice - the proportion of
    overall advertising in a market accounted for by a
    brand or company
  • Advertising to sales ratio - expenditure on
    advertising as a proportion of sales

Marketing - Advertising

  • The DAGMAR model highlights how
    advertising can be assessed by a firm
  • Defining
  • Advertising
  • Goals
  • for Measured
  • Advertising
  • Results

Marketing - Advertising
                          A word of caution

  • Even good advertising cannot overcome
    problems caused by
      – Poor product
      – Inefficient service
      – Uncompetitive pricing
  • “Half of all advertising is wasted-the problem
    is we don’t know which half”. (Lord
    Leverhulme (founder of Unilever)

Marketing - Advertising

Shared By: