Advertising Strategy by hwr10459

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									              Advertising Strategy

                   Session 7
                  Summer 2008




Ganesh Iyer
                                     1
                      Advertising Planning Process


   Brand Positioning                              Target Market


                         Advertising Objectives


                           Budget Decisions


              Creative Strategy           Media Strategy


                          Campaign Evaluation
Ganesh Iyer
                                                                  2
                                Advertising Objectives


      Create awareness for new products

      Inform consumers
              » of product features and benefits
              » price changes
              » Important for building primary demand

      Persuasion
              » Build brand preference or change buyer perceptions
              » especially important for building demand in competitive markets.

      Reminder advertising: maintain top-of-mind awareness




Ganesh Iyer
                                                                                   3
                Hierarchy of effects
              Communication Process


                    Awareness



                     Interest



                  Liking, Preference



                   Purchase, Action



Ganesh Iyer
                                       4
                                 Creative Strategy


             Develop the USP “unique selling proposition” or the “Creative
              Hook”

      Unique Selling Proposition
       Translates “brand positioning” into a compelling message.


             Objective is “Memorability”




Ganesh Iyer
                                                                              5
                           Creative Strategy:
                      Emotional vs. Rational Appeal


      Emotional = appeal to psychological, social or symbolic needs. “Pull at the
        consumer’s heartstrings”

      Rational = provide information about functional and utilitarian aspects of
         the products.

      Shift towards emotional execution strategy in the later part of the product
         lifecycle
           » Intense competition and proliferation of substitutable products
              (Michelin)
           » Critical to increase “Product involvement”
           » http://www.youtube.com/watch?v=sIkQRXkpwQI
           » http://www.youtube.com/watch?v=SdPLf3FoInE

Ganesh Iyer
                                                                                    6
                      Taxonomy of Emotional Appeals

      Fear appeal
       can be an effective motivator but has the danger of alienating
        consumers
              » Show the consumer how to avoid the problem.
              » Provide concrete supporting information




Ganesh Iyer
                                                                         7
                         Taxonomy of Emotional Appeals


      Humor
              »   “Memorability” device.
              »   Humor should not clutter the product benefits.
              »   Execution detail: Show consumer how to avoid the problem.
              »   Pre-test to check if consumer
                   – i) recalls product benefit
                   – ii) Attitude_product versus Attitude_ad = will the message be persuasive and will
                     the product be taken seriously.
              » http://www.youtube.com/watch?v=kVCGBohc20k&mode=related&search=
              » http://www.youtube.com/watch?v=f3mXaATLeRM
              » http://www.youtube.com/watch?v=zV-yGp4l8B8

      Fantasy
              » seen often in cosmetics advertising
              » http://www.youtube.com/watch?v=r1g5qcKcVCM

Ganesh Iyer
                                                                                                         8
                    Types of Rational / Informational Appeal


      Technical Expertise or Scientific Evidence: (Crest…“Look ma no
        cavities”)

      Comparative: Product features vs. competition (Nike vs. Reebok)
               » http://www.youtube.com/watch?v=xhiyDQNmEjY

             Advantages
               » High ability to get attention
               » Helps in competitive positioning

             Disadvantages
               » Advertise the competition. Makes competition more salient.
               » Can use only if there is clear objective superiority for the advertised
                  attribute.

Ganesh Iyer
                                                                                           9
                                   Media Decisions


             Define the target market.

      Quantitative Measures
             Reach: the percentage of people in the target market who are exposed
              to the ad campaign during the defined time duration
               » 70% of the target market during the first three months of the
                   campaign

             Frequency: A measure of how many times an average individual in the
              target market who have been reached .




Ganesh Iyer
                                                                                     10
                                    Media Decisions


      Advertising Exposure
             Gross Rating Points = 70(Reach) 4(Frequency) = 280 GRP’s
             1GRP = 1 exposure to 1% of the audience.

      Qualitative Measures
       Impact; is the qualitative aspect of the medium
               » Newsweek vs. The National Enquirer
               » Sports illustrated vs. Time for tennis racquets

             Trade-off between reach and frequency

             Pulsing vs. Continuity
               » Pulsing most critical for new products. Why?
               » Continuity needed when faced with intense competition
Ganesh Iyer
                                                                         11
                                 Message



      Good advertising creative strategy translates the brand’s
        positioning statement into a persuasive and memorable
        message. A great creative will provide lasting impact even if
        advertising budgets are constrained.

      “ How you say it is as critical as what you say”




Ganesh Iyer
                                                                        12
                                         Analysis Framework

     First mover advantages                        Company Analysis                      Perceptual mapping
                                                   Marketing Myopia
              Competitor                                                                    Customer Analysis
               Analysis
                                   Positioning                        Segmentation



                                                                                          Marketing Orientation
                                            Marketing Strategy
                                                                      Branding
                                                        Product
                              Pricing process                           Product Line Strategy
                              Pricing and innovation (ODI) Price        (Cambridge)

                                                       Promotion
                                                          Place       Going to market
                                Direct marketing
                                                                      (Goodyear)
                                (Calyx)



                                                        Market
Ganesh Iyer
                                                                                                                  13

								
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