Chapter 19, Class Notes

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Advertising definition:
Paid form of non personal communication about an organization or its products that is transmitted to a target audience through a mass/broadcast medium.

Advantages and disadvantages:

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Scope and Importance of Advertising

Advertisements are important for: Broadcast Ad spending is at an all time high due to heavy competition in the: Whenever severe competition between marketers, introducing new products etc. Even with evolution of direct marketing, and interactive media.
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Nature of Advertising

Used by many types of organizations including Churches, Universities, Civic groups and charities, politicians!!

Need to consider the following issues:

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Use of Advertising


Developing an Advertising Campaign

Integrated marketing...incorporate w/ sales promotions, and other communications tools.

Video...development of an ad within a campaign

Designing a series of advertisements and placing them in various advertising media to reach a particular target market. Seven steps.
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  1. Identify and Analyze the Advertising Target.

    The group of people for which the advertisement is aimed at, may direct campaign at only a portion of the target market.

    Research and analyze advertising targets to establish an information base for a campaign. Generally increase advertisers knowledge about their target--the more effective the campaign.

    David Ogilvy Award focuses on rewarding research in advertising: 1994 finalists:

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  2. Defining Objectives.

    What the firm hopes to accomplish from the campaign, should be clear, precise and measurable, can help measure the success at the end of the campaign. Use a benchmark.
    At what stage are the target market in the Product Adoption Process. What are the goals of the increase purchases, to generate traffic in the retail store etc.

    Demand oriented objectives vs. image oriented objectives
    Increase product/brand awareness
    Change consumer attitudes...reposition product
    Increase customer knowledge of product features
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  3. Determine the Advertising Appropriation

    Total amount of money that a marketer allocates for advertising in a specific period. Return to Content List
  4. Creating an Advertising Message

    A function of the product's features, uses and benefits.
    Must be aware of the characteristics of target market, different message to different target market.
    Dependant on objective of the campaign.
    Can use a Spokesperson. Celebrities 1993 ranked:
    1. Cindy Crawford...Pepsi Cola, Revlon
    2. Candice Bergen...Sprint (1/3 believe either AT&T or MCI ;)...don't want the personality to overwhelm the brand)
    3. Bill Cosby...Jello
    1. Michael Jordon, 6th time in 7 years
    Components of the advert: Copy verbal portion of the advert. Includes all aspects except the illustrations. Attempts to move the reader through:
    1. Awareness
    2. Interest
    3. Desire
    4. Action
    Headline--should attract readers attention, make readers want to read the copy.
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  5. Developing a Media Plan

    Sets forth the exact media vehicles to be used and dates and times of ads. Effectiveness of plan determines how many people in the advertiser's target will be exposed to the message. Need to select the media to be used and dates and times ads appear.

    Primary goal--reach the highest # of people (within the advertiser's target) per $ spent. Achieve the appropriate message reach and frequency for the target audience while staying within the budget.

    Various Media

    Need to select general media, IE Newspapers, then subclass, IE Philadelphia Inquirer.

    Look at location and demographics of advertisers target, use media that appeals to this group.
    Content of message to present affects the choice of media.
    Cost of media, use cost comparison indicator-within specific media (IE between two magazines), CPM "cost per thousand" for magazines.
    -cost, total cost; per reader/viewer cost
    -reach, #viewers/readers in the audience, print media includes circulation and pass on, more for magazines than newspapers
    -waste, portion of marketer's audience that are not in the target market
    -frequency, how often can the medium be used/changed, i.e., TV radio hourly, newspapers daily, Yellow pages yearly.
    -message performance, number of exposures each advertisement generates and how long it remains available to the audience; outdoor ads, many exposures/message, magazines retained for a long period of time.
    -clutter, # of advertisements contained in a single program/issue of a medium. TV ads moving to 15 secs. each is increasing clutter. Some moving to 2 minutes...or even 5, especially if there is a complex maybe!!

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  6. Executing the Campaign

    Requires extensive planning and coordination. Advertising Agencies, production costs, research organizations, media firms, printers, photographers, and commercial artists etc. Detailed schedules are needed to insure everything is accomplished on time. (video)
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  7. Evaluating the effectiveness of the campaign

    Measure the achievement of the objectives, assessing the effectiveness of the copy etc., and the media.

    Typical consumer is bombarded with about 300 advertising messages/day, 109,500 per year. 80% of people cannot remember a typical ad one day after seeing it. NEED CREATIVITY!?!?
    Pretests before campaign, use a consumer jury.
    During the campaign, "inquiries"-coupons numbered.
    Posttests after the campaign, use consumer surveys to measure the change in communication objectives, change in sales or market share. Cannot be precise due to the environment.
    Use recognition tests to determine the degree to which consumers recognize advertisements.
    Recall evaluation, consumers are asked what they have seen lately. Aided or unaided.

    Handout...Loved the Ad. May (or May Not)...

    Since there is no direct feedback loop, it is hard to determine the effectiveness of an advertising campaign. Many other factors effect sales.

    Handout...Mercedes-Benz Tries Out Humor, Youth

    TM = Younger consumers, need to be more approachable
    TV & Print Ads
    Example of Copy ...Dreams, Dreams are what drive us. But sometimes life is get to drive your dream.

    Handout...Lexus, Sales Skidding...

    Budget = $50 million
    Changing market-place
    Less opportunities for Lexus
    Need to develop heritage
    National TV...Image
    Local TV...Competitive $s
    Magazines...Features, 12 page insert
    Direct Mail...current customers
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    Who develops the advertising campaign?

    Advertising Agencies receive 15% commission from media purchases, this can offset cost of using an agency.

    Advertising Future!!

    Handout...Fresh Alarm is Sent Over Interactive Age

    Handout...Advertisers Anticipate Interactive Media...

    Interactive media


    Traditional media communication

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    Problems with this model include: Interactive media communication
    Advantages of this model include: WWW is a working model for the future of interactive media.
    Extra credit assignment...access Sony's homepage, browse the information and Email me what you learnt.


    TV...Be able to query commercials with remote control to get more information, can develop into a retailing transaction.

    Ads specific to your information needs will be delivered to you, based on your prior buyer behavior and query habits...not dependent on the programs you watch as is the case now.
    Therefore consumers watching same programs will receive different advertisements, advertisements will not be dependent on the programs, as they are now, but on the individual house holds passed buying behavior and needs!!
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