Advertising Session 16

Advertising Advertising is any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor

2003 Top Advertisers 1. McDonald’s Corp 2. Cendant Corp 3. Yum Brands 4. Burger King $1,368,000,000 $773,000,000 $761,000,000 $524,000,000

Major Decisions in Advertising Setting the Objectives Setting the Advertising Budget Message Decisions Media Decisions Campaign Evaluation

Setting the Objectives Informative advertising is used to inform consumers about a new product or feature to build primary demand Persuasive advertising is used as competition increases and a company’s objective becomes building selective demand Reminder advertising is used for mature products since it keeps consumers thinking about the product

Major Advertising Decisions

Setting the Advertising Budget Specific factors to be considered when setting an advertising budget: Stage in the product life cycle Competition and clutter Market share Advertising frequency Product differentiation

Setting the Advertising Budget General factors to consider: Strategic versus Tactical Budgets Overall Promotional Budget Consistency Opportunities to Stretch the Budget The Final Budget

Message Decisions Message Generation Message Evaluation and Selection Message Execution

Execution Styles Slice of Life Lifestyle Fantasy Mood or Image Musical Personality Technical Expertise Scientific Evidence Testimonial Evidence

Media Decisions Deciding on Reach, Frequency, and Impact Choosing Among Major Media Types Selecting Specific Media Vehicles Deciding on Media Timing

Profiles of Major Media Types

Campaign Evaluation Measuring the Communication Effect Measuring the Sales Effect