Advertising Direct Marketing
U.S. advertising expenditures ($ millions)
Types of Advertising
• Product advertising - message focuses on a specific product • Institutional advertising - message focuses on activities, personality, or point of view of a company
– advocacy advertising – public service advertisements (PSAs)
Who Does Advertising?
• An advertising campaign is a coordinated, comprehensive plan that carries out promotion objectives and results in a series of advertisements placed in media over a period of time • Agencies
– limited-service – full-service
Alternative structures of advertising agencies used to carry out the advertising program
The Body of Campaign Creation
• • • • Account management (soul) Creative services (heart) Research and marketing services (brains) Media planning (legs)
Developing the Campaign
Identify the Target Market
Establish Objectives: Message and Budget
Design Ad Campaign
Pretest Campaign Choose Media and Schedule
Who is the Target Market?
Successful campaigns speak to the target audience.
Establish Objectives
• Message goals (adverbials) • Budget
– – – – Comparative parity % sales Objective-Task All you can afford
Design the Ad
• Creative strategy is the process that turns a concept into an advertisement • Creatives try to develop a “big idea” • Creatives:
– art directors – copywriters – photographers
Advertising Appeals
• Reasons Why (USP) • Comparative Advertising • Demonstration • Testimonial • • • • • • Slice-of-Life Lifestyle Fear Sex Humor Slogans and Jingles
Name that Brand!
• • • • Double your pleasure, double your fun Good to the last drop My bologna has a first name…. I’d like to buy the world a _____
Pretest What Will Be Said
• Copy testing measures ad effectiveness
– Concept testing – Test commercials (with animatics or storyboards) – Finished testing
Pretesting – Finished Testing
• Jury Tests
• Theater Tests • Portfolio Tests
Choose the Media
• Media planning is a problem-solving process for getting a message to a target audience in the most effective fashion
– Where to say it – When to say it
Television
• Pros
– – – – Creative and flexible Prestigious High impact messages Network TV is cost effective for reaching mass audience – Cable TV is good for reaching targeted group
• Cons
– Quickly forgotten – Requires frequent repetition – Increasingly fragmented audiences – High costs on an absolute basis – Shorter ads result in increased clutter
Radio
• Pros
– – – – – Good for selective targeting Heard out of home Relatively low cost Can be modified quickly Uses listener imagination
• Cons
– Listeners may not pay full attention – Small audiences mean ads must be repeated frequently – Not appropriate for products requiring demonstration
Newspapers
• Pros
– Wide exposure and extensive market coverage – Flexible format permits use of color, different sizes and editions – Useful for comparison shopping – Local retailers can tie in with national ads
• Cons
– Most don’t spend much time reading newspapers – Low readership among teens and young adults – Short life span – Very cluttered
Magazines
• Pros
– Narrowly targeted audiences by specialized magazines – High credibility and interest level provide good ad environment – Long life span and pass along rate – Excellent visual quality
• Cons
– With exception of direct mail, the most expensive form – Long deadlines – Must use several magazines to reach target
Outdoor
• Pros
– Very high reach – Low cost – Good for supplementing other media
• Cons
– Hard to communicate complex messages – Cannot demonstrate product effectiveness – Controversial and disliked
Out-of-Home Media
Billboards provide reach and grab attention!
Direct Response
• Pros
– Ads can target extremely narrow audiences – Messages can be timed – Easy to measure effectiveness
• Cons
– High cost per exposure – Target lists must be constantly updated – Ads lack credibility among many consumers
Innovative Media
• Place-based media - transmit messages in public places • Guerilla marketing - use unconventional locations and intensive word-of-mouth campaigns to push products
Internet Advertising
• • • • Banners Buttons Sponsorships Search engine and directory listings • Pop-up ads • Email
– permission marketing – spamming
• Web site design
Media Scheduling
• Specifies the exact media to use for the campaign, when and how often the message should appear • Outlines the planner’s best estimate of which media and vehicles will be most effective in attaining campaign objectives
Factors Affecting Media Scheduling
• • • •
Target market profile People reached by different vehicles Advertising patterns of competitors Capability of medium to convey desired information • Compatibility of product with editorial content
Media Scheduling: How Often?
• Continuous - steady stream throughout year • Pulsing - varies amount of advertising based on when product is in demand (e.g., suntan lotion) • Flighting - advertising appears in short, intense bursts alternative with period of little to no activity
Media Schedule
Evaluating Advertising
• Posttesting means conducting research on consumers’ responses to advertising messages they have seen or heard
– unaided recall – aided recall – attitudinal measures
Evaluating Advertising
• Post testing the advertising
– – – – – Aided Recall (Recognition-Readership) Unaided Recall Attitude Tests Inquiry Tests Sales Tests
• Making needed changes (feedback)
Direct Marketing
• Any direct communication to a consumer or business recipient that is designed to generate a response in the form of an order, a request for further information, and/or a visit to a store or other place of business for purchase of a product
Forms of Direct Marketing
• Mail order
– Catalogs – Direct mail
• Telemarketing • Multilevel sales • Direct response television
– Infomercials – Home shopping networks
M-Commerce
• Promotional activities transmitted over mobile phones and other mobile devices such as personal digital assistants (PDAs)
– Prevalent in Europe and Asia