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 Cons 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 Cons 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 Cons Wide exposure and extensive market coverage Most don’t spend much time reading newspapers Low readership among teens and young adults Short life span Very cluttered 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

Magazines Cons With exception of direct mail, the most expensive form Long deadlines Must use several magazines to reach target 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

Outdoor Cons Pros Hard to communicate complex messages Very high reach Cannot demonstrate product effectiveness Controversial and disliked Pros Very high reach Low cost Good for supplementing other media

Out-of-Home Media Billboards provide reach and grab attention!

Direct Response Cons Pros High cost per exposure Target lists must be constantly updated Ads lack credibility among many consumers Pros Ads can target extremely narrow audiences Messages can be timed Easy to measure effectiveness

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