ADV 3001 Advertising Strategy
I. Introduction
The importance of advertising
Brands Consumers
Advertising Strategy
Advertising’s role
Purchase
Loyalty, love, fulfilled marriage, identification, long-term relationship
Attitude
Knowledge/Emotions
Brand equity
Awareness
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Syllabus
This class is designed for 3/4JM
Everybody else, talk to Dr. Sutherland
The syllabus is our contract
Advertising Strategy
Write in your To Do list
Get exposed to advertising
As an industry
Ad Age Ad Week Wall Street Journal New York Times Podcasts
As a creative endeavor
Watch ads adrants.com
Advertising Strategy
What’s advertising?
“Advertising is a paid, mediated form of communication from an identifiable source, designed to persuade the receiver to take some action, now or in the future” (Richards and Curran 2002 p. 74)
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What’s Integrated Marketing Communications?
A communications process that entails the planning, integration, and implementation of diverse forms of marcom (ads, sales promotions, publicity, events, etc.) that are delivered over time to a brand’s targeted customers and prospects. (Shimp 2007, p. 7)
Advertising Strategy
IMC – Traditional Media
Integrated Marketing Communications
Advertising
Direct Marketing
Public Relations
Sales promotion
TV, print, radio
1-800s, mailings
Sponsorships, relations
Discounts, sweepstakes
Advertising Strategy
IMC – Interactive Media/Others
Integrated Marketing Communications
Advertising
Direct Marketing
Public Relations
Sales promotion
Interstitials, on-demand
Email, e-commerce
Buzz
Mini Web sites, e-coupons
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What’s strategy?
“Strategy is the general plan designed to give the campaign its competitive edge” (Parente 2000, p. 17) The key to strategic thinking involves anticipating consumer and competitive responses to a variety of alternative actions (Parente 2004, p. 3)
Advertising Strategy
Why study strategy in advertising?
It’s the intersection of communication and business. Creativity without a strategy:
It might win ad awards No sales impact No creation of brand equity
Advertising Strategy
Why study strategy in advertising?
Strategy without creativity:
Plain ugly, avoid at all costs advertisements Can’t break the clutter No resonance with the consumer
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Travelocity’s challenge
Travelocity had been market leader for years but it slipped into the #2 position. Expedia.com was staging a price war.
Advertising Strategy
Research
Research found a group of consumers called “The Insiders”.
Active, self-directed, resourceful, information-hungry, internet-savvy and love to travel. They love to discover new things and to feel that they are “in the know.” And they love to share their insider information with others.
Advertising Strategy
The Creative
Big idea:
Gnome Napping- taking a gnome out of someone’s garden and sending pictures back to the owner.
The roaming gnome would be the new spokesman.
He is fun, open to new experiences and happy to pass on new information he gathers.
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Results
Brand momentum returned & website hits increased. One month after campaign website hits were 250% over goal and through July 2004 hits were 108% over goal
Advertising Strategy
The origins of strategic planning
Selling Concept Product Concept Production Concept
• Product availability • Low cost • Aggressive sales • Promotions
• Product attribute focus
Advertising Strategy
The marketing concept
Companies had to turn to marketing due partly to parity among competitors. Consumer-oriented. Needs and wants of consumers. All the corporation works as a coordinated entity.
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Key elements of strategic planning
Brands Consumers Communications
Advertising Strategy
What is a brand?
A name, term, sign, symbol, or any other feature that identifies one seller’s good or service as distinct from those of other sellers. Any product-based moniker that represents the relationship between marketer and consumer.
Advertising Strategy
Nature of brands
Intangible Financial value is implicit Value/meaning consumers associate with brands are subjective
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Brand building
Brands differentiate products:
Performance attributes Image Celebrity endorsers/Personalities Value-based associations
Advertising Strategy
Brand equity
BE = Differentiation is important to the consumer “The extra value associated with a particular brand name”
Advertising Strategy
Factors driving brand equity
Brand awareness
Knowledge, familiarity
Brand loyalty
Consistency of behavior
Perceived quality
Perceived worth, value
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Factors driving brand equity
Brand associations
Events Spokespersons Tag lines Other companies
Proprietary brand assets
Trademarks Characters Patents
Advertising Strategy
How IMC helps brand equity
Long term approach All the tools of the marketer have a similar message. Develops strategies that are in synch with consumers’ preferences, likes, and behaviors.
Advertising Strategy
Case analysis
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Main elements of case solving
What is the problem? What is the situation? What are the alternatives? Which one is the best alternative?
Advertising Strategy
Case Analysis Process
State Problem/Decision
Based on Situation Analysis Translate symptoms into underlying problems/decisions (e.g. declining sales is a symptom, not a problem) May include secondary problems or decisions
Advertising Strategy
Case Analysis Process
Situation analysis
Prepare a short summary of information about:
Company Consumer Product Competition Market Other considerations: Legal, political...
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Case Analysis Process
Identify Alternatives
Identify actions that might provide viable solutions to the problem or decision Link alternatives to the situation analysis Use advertising strategy theory & principles to suggest strategies (i.e. positioning, creative strategy, etc.) Criteria for alternatives:
Collectively exhaustive Independent of one another Mutually exclusive Relevant to the situation
Advertising Strategy
Case Analysis Process
Establish Criteria
Monetary
Future revenue & costs Opportunity cost Time pattern of future earnings Effect of taxes Profits
Non-monetary
Unit sales Market share Customer attitudes/image Customer awareness Competitive position
Advertising Strategy
Case Analysis Process
Evaluate/Analyze
Consider the relative advantage/disadvantage of each alternative relative to each weighted criteria Apply strategy theory & principles
Decision & Recommendations
Take a stand Develop an action plan Establish expected costs and returns associated with recommendation
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ATM Case
What is the problem? What is the situation?
Advertising Strategy
What are the alternatives? Which one is the best alternative?
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