Essentials of Health Care Marketing 2nd Ed. Eric Berkowitz Chapter 12 Advertising

Chapter 12 Learning Objectives Recognize the differences between the two basic forms of advertising: product and institutional Describe the steps followed when developing an advertising campaign Know various ways to develop an advertising budget Understand the value of alternative media

Introduction Advertising Defined as directly paid form of nonpersonal presentation of goods, services, or ideas by an identified sponsor. Paid – distinguished from publicity Nonpersonal – distinguished from personal selling

Learning Objective 1 Common Classifications of Advertising Product Advertising – focus on a particular product or service Institutional Advertising – build up or enhance an organization’s image

Learning Objective 1 Product Advertising Informational Competitive Used in introduction stage of new product Competitive Persuasive – generate selective demand Reminder Most often used in maturity stage

Learning Objective 1 Institutional Advertising Used to build goodwill and to enhance the public’s image of a particular organization Pioneering - Some introduce or announce openings Some compare programs Some advocate public policy position

Learning Objective 2 Developing the Ad Campaign Seven Steps Define the Target Audience Determine the Advertising Objectives Determine Budget Develop Message Specify Communication Program Evaluate Response

Learning Objective 2 Developing the Ad Campaign - Steps 1 – Define Target Audience Specified the group to whom the organization is trying to communicate Includes demographics, psychographics The more detailed this section, the easier subsequent sections will be.

Learning Objective 2 Developing the Ad Campaign - Steps 2 – Determine Advertising Objectives Facilitates consumers along hierarchy of effects Awareness Interest Evaluation Trial Adoption See Exhibit 12-1 page 322 Have students discuss the steps in the hierarchy of effects model

Learning Objectives 2, 3 Developing the Ad Campaign - Steps 3 – Determine the Budget Percentage of Sales Competitive Parity All You can Afford Objective and Task* Most appropriate way, marketer’s dream budget Have students discuss the different budgeting methods, pp. 325-327

Learning Objective 2 Developing the Ad Campaign - Steps 4 – Develop the Message Appeals Rational – functional attributes Emotional – fear and humor Moral/social – focus on causes or issues

Learning Objective 2 Developing the Ad Campaign - Steps 4 – Develop the Message Pretesting – assessing advertising copy options before their general use Portfolio Tests – testing alternative copy Jury Tests – shown to panel of consumers, usually one ad is shown Theater tests – immediate feedback Done often in healthcare in less expensive form Have students discuss the different pretesting - pp. 318-319

Learning Objective 2 Developing the Ad Campaign - Steps 5 – Specify the Communication Program Medium – the form of communication selected (print, broadcast, direct mail, outdoor) Reach Frequency Vehicle – Advertising alternative chosen within each medium Specific publications, stations

Learning Objective 2 Developing the Ad Campaign - Steps 5 – Specify the Communication Program Scheduling Seasonal Steady Flighting Concentration Pulsing Discussion – each of the scheduling variations p. 330

Learning Objective 2 Developing the Ad Campaign - Steps 5 – Specify the Communication Program Selecting the most cost-effective approach CPM – cost per thousand – print Cost per point – based on rating points - television

Learning Objective 2, 4 Selecting the right medium Television Radio Newspaper Magazines Outdoor Advertising Direct Marketing Internet Discussion – each of the media pp. 333 – 336, advantages and disadvantages of each. (think-pair-share)

Learning Objective 2 Developing the Ad Campaign - Steps 6 – Evaluate the response Posttesting – attitude tests Broadcast – day-after recall Print – aided or unaided recall Direct mail – response rates

Learning Objective 4 Working with Ad Agencies Full-service agency - one-stop shopping Boutique agency – limited range Creative services Media buying Broker other services Fees – commission or fee-based structure

Summary Advertising can take one of several forms; it can be product-based or institution-based. The basis for an advertising campaign is the media plan, which is built on the definition of the target audience. Advertising objectives are based on the hierarchy of effects model. Advertising budgets are often derived on different bases. The most effective basis is an objective and task method.

Summary continued The creation of effective advertising copy requires pretesting of the message with a sample similar to the target audience. In selecting the media for use in an advertising campaign, an organization often must make trade-offs between reach and frequency. There are several patterns by which advertising exposures can be scheduled: steady, seasonal, or flighting.

Summary continued Advertising media must be selected to minimize wasted coverage. Media choices can be compared on a cost-per-thousand or cost-per-point basis. Cable television has greatly reduced the cost of television advertising, while technological advances have affected both print and direct mail. Environmental constraints limit outdoor advertising. Advertising agencies differ in the structure, fee, and range of services provided. In recent years, there is a trend to a fee payment system.