Advertising Objective 1 – SWBAT describe advertising Objective – SWBAT describe the major categories of advertising

What is Advertising? Advertising is a paid public announcement to persuade consumers to buy a good or service. Criteria: Message must be paid for Message must be delivered to the audience by mass media Message must try to persuade audience of some action or belief

Advertising Is A Marketing Tool Advertising is an important part of a company's marketing process. The process includes researching, pricing, promoting, selling, & distributing a good or service.

Ads & Marketing Design a Marketing Strategy Used to promote & distribute a product Strategy includes: Ads you see Things you don’t notice much Warranties, Instructions, etc. Ads tell the target audience about the value of the good or service. You, the consumer, must see the product’s value before spending $.

Ads & Marketing Target the Consumer Use demographics, geographics, psychographics Contribute to revenue and profit earning Use brand loyalty to keeps consumers coming back

Ads & Marketing Enhance customer satisfaction Eliminate Cognitive Dissonance Consumer is uncertain about purchase after making it. Good ads reinforce the customer’s decision—satisfaction, loyalty, quality

Advertising in the Economy Gross Domestic Product Measurement of the total value of goods and services produced Derived Demand Ads help increase demand. As demand increases, consumer spending increases in other areas

Advertising Impact--Consumer Behavior Everything that affects or is affected by human consumption. How consumer act is shaped by : Experience Dreams of the future Economic Level

Example Response What’s in it for me? Consumers look for goods and services that provide benefit to them Functional—same for everyone Objective benefits; easily measured Umbrella—keeps me dry Emotional—good or service makes you feel proud or satisfied Subjective benefits, difficult to measure This product makes me feel good

Major Categories of Advertising

INSTITUTIONAL AD GOAL: to build up the image of business 1. Product-oriented 2. Designed to establish, change, or maintain corporation ’ s identity 3. Generally, asks audience to continue to like the business and its goods and services 4. Audience: businesspeople, opinion leaders, investment community, customers, employees

Major Categories of Advertising PRODUCT AD GOAL: to promote benefits of a specific good or service. 1. Designed to make consumer/customer aware of goods and services 2. Audience—Consumers/Customers Product life cycle can help businesses determine which type of ad to use.

Types of Ads Brand Advertising Intention Remember the brand rather than a specific product. Good for companies that sell multiple products

Ad Types Informative Advertising Intention Teach you about the product’s benefits Good for products that the consumer does not understand Example—prescription medicines

Ad Types Defensive Advertising Intention Tells consumers why a comparative ad is incorrect. Identifies benefits that are important to the customer/consumer.

Ad Types Persuasive Advertising Intention Show happy people using the product Implication—you will be happier, more glamorous, more athletic, etc. They don’t talk about the products features & benefits.

Ad Types Pioneer Ad Intention  intended to stimulate demand for a new product or category. ---seeks to create interest

Ad Types Competitive Ad Intention influences demand for a specific brand  Promotion less informative & starts to appeal more to emotions  Subtle differences become stressed  Price becomes key

Ad Types Comparative Ad Intention  directly or indirectly compares two (2) or more competing brands on one or more specific attributes.

Ad Types  DAGMAR (Defining Advertising Goals for Measured Advertising Results) Intention All advertising objectives should precisely define the target audience, the desired percentage change in some specific measure of effectiveness, and the time frame in which that change is to occur.

Example of an DAGMAR Ad Toyota Camry sets an objective: increase over the next 2 years by 12 percent the number of potential 25-to-30 year-old Camry buyers exposed to Camry ads.

Advocacy Advertising Intention  Corporations to express their views on controversial issues, reactions to criticism or blame, handle damaging publicity Ad Types

Example of an Advocacy Ad R. J. Reynolds—Non-smoker declares: “ The smell of cigarette smokes annoys me, but not as much as the government telling me what to do. ”

Values & Advertising Image Control Advertisements reflect 2 different visions of yourself As you really are As you wish you were

How Do You Compare? Companies want you to see yourself using their products Individuals in Ads are usually portrayed as people wished they looked. Most models weight 23% less than average people The average man is 5’9” Disabled people are rarely seen in ads Ethnically mixed groups are infrequently shown

What Do Ads Provide? Objective – SWBAT understand what ads offer

Ads Provide Information Advantage Ads Educate Consumers Consumers Rights & Responsibilities Act They buy better products They pay lower prices The spend less time shopping

Ads Provide Information Disadvantage Ads are biased Ads primary purpose is to convince you to buy a product. Most ads contain little “raw” information

Ads Raise the Standard of Living Advantage Ads make products cheaper Ads help company sell more items If company does well, they can put more $ into making a better product. Ads stimulate demand and keeps you informed about new products.

Standard of Living--minimum level of necessities & luxuries required to keep an individual group at a common level of comfort.

Ads Raise the Standard of Living Disadvantage Ads only raise the standard of living for some.

Ads do not raise your income If you can’t afford a product, ads won’t help you. Ads may widen the gap between the rich & poor

Ads & Society Advantage Ads Reflect Society’s Priorities Advertising promotes the “good life.” The good life is full of glamour, romance, & good friends Ads give you something to dream of & work toward

Advertising Campaign A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals. 3 3

Steps in Creating an Advertising Campaign Determine the advertising objectives. Make creative decisions. Make media decisions. Evaluate the campaign. 3 3

Setting Objectives: The DAGMAR Approach 3 3 Define Target Audience Define Desired Percentage Change Define Desired Percentage Change Define the Time Frame for Change Goal of Advertising Objectives Goal of Advertising Objectives

Creative Decisions 3 3 Components of Creative Decisions Components of Creative Decisions Develop and Evaluate Advertising Appeals Develop and Evaluate Advertising Appeals Execute the Message Evaluate the Campaign’s Effectiveness Evaluate the Campaign’s Effectiveness Identify Product Benefits

3 3 “Sell the Sizzle, not the Steak” Sell product’s benefits, not its attributes A benefit should answer “What’s in it for me?” Ask “So?” to determine if it is a benefit

Advertising Appeal 3 3 Reason for a person to buy a product.

Common Advertising Appeals 3 3 Profit Health Love or romance Fear Admiration Convenience Fun and pleasure Vanity and egotism Environmental Consciousness Environmental Consciousness Product saves, makes, or protects money Appeals to body-conscious or health seekers Used in selling cosmetics and perfumes Social embarrassment, old age, losing health Reason for use of celebrity spokespeople Used for fast foods and microwave foods Key to advertising vacations, beer, parks Used for expensive or conspicuous items Centers around environmental protection

Unique Selling Proposition 3 3 Desirable, exclusive, and believable advertising appeal selected as the theme for a campaign.

Executing the Message Mood or Image Musical Demon- stration Demon- stration Scientific Real/ Animated Product Symbols Real/ Animated Product Symbols Fantasy Lifestyle Slice-of-Life Humorous CommonExecutionalStylesCommonExecutionalStyles Spokes- person/ Testimonial 3 3

Media Selection Considerations Cost per Contact Factors Influencing Media Mix Decisions Factors Influencing Media Mix Decisions Reach Frequency Audience Selectivity 4 4

Media Selection Considerations Cost per Contact Contact ReachReach FrequencyFrequency AudienceSelectivityAudienceSelectivity The cost of reaching one member of the target market. The number of target consumers exposed to a commercial at least once during a time period. The number of times an individual is exposed to a message during a time period. The ability of an advertising medium to reach a precisely defined market. 4 4

Media Scheduling Types of Media Schedules Types of Media Schedules Continuous Media Schedule Flighted Media Schedule Pulsing Media Schedule Seasonal Media Schedule 4 4

Learning Objective Discuss the role of public relations in the promotional mix. 5 5

Public Relations 5 5 Evaluates public attitudes Identifies issues of public concern Executes programs to gain public acceptance The Role of Public Relations The Role of Public Relations

Functions of Public Relations Press Relations Product Publicity Corporate Communication Public Affairs LobbyingLobbying Employee and Investor Relations Crisis Management 5 5

Public Relations Tools Tools Used By PRProfessionalsTools PRProfessionals Product Placement Consumer Education Event Sponsorship Issue Sponsorship Internet Web Sites New Product Publicity 5 5

Managing Unfavorable Publicity 5 5 A coordinated effort to handle the effects of unfavorable publicity or of an unfavorable event.CrisisManagement

Ads & Society Disadvantage Advertising Promotes Materialism Ads promote products as symbols of status & success Can be harmful to society You might choose to get a high salary rather than working in a job that will fulfill you personally.

Ads Affect Mass Media Advantage Ads Supports a Variety of Mass Media 2000 U.S. Advertisers spent $198 billion $ spent on ads give you low-cost access to a variety of information & entertain providers Example - Radio & TV

Ads Affect Mass Media Disadvantage Ads Affect the Information Available Advertisers can withdraw their ads from the media vehicle Small publications can go out of business if a large advertiser withdraws support. Programs that tackle controversial topics could have trouble attracting advertisers