Overview of Advertising Management Chapter Eight Overview of Advertising Management

Advertising Functions Informing Persuading Reminding Adding Value Assisting Other Company Efforts 2

Advertising Functions Informing Makes consumers aware, educates them about the features and benefits, and facilitates the creation of positive brand images Facilitates the introduction of new brands and increases demand for existing brands Performs another information role by: 3

Advertising Functions Persuading Persuades customers to try advertised products and services Primary demand: Secondary demand: 4

Persuading Gillette MACH3

Advertising Functions Reminding Keeps a company’s brand fresh in the consumer’s memory Influences brand switching by: 6

Advertising Functions Adding Value Three basic ways by which companies can add value innovating improving quality altering consumer perceptions Advertising adds value to brands by: 7

Advertising Functions Assisting Other Company Efforts Advertising is just one member of the marketing communications team Sometimes, an assister that facilitates other company efforts in the marketing communications process Examples? 8

The Advertising Management Process Advertising Strategy Setting Objectives Formulating Budgets Creating Ad messages Selecting Ad Media and Vehicles Strategy Implementation Assessing Ad Effectiveness 9

Setting Advertising Objectives Expression of management consensus Guides the budgeting, message, and media aspects of advertising strategy Provide standards against which results can be measured 10

Advertising Objectives WHO WHAT Several categories of advertising objectives guide advertising strategy WHERE WHEN How Often

Advertising Objectives WHO WHAT Specify target market WHERE WHEN How Often

Advertising Objectives Kellogg’s Special K Target women in the age group 16-35 who are concerned with their physical appearance

Advertising Objectives Quaker Oats Target middle-aged males who are robust yet concerned with their health

Advertising Objectives WHO What emphasis? What goals? WHAT Emphasis: the features and benefits to be emphasized and the emotions to be evoked Goals: objectives that need to be accomplished at the present stage in a brand’s life cycle WHERE WHEN How Often

Advertising Objectives WHO WHAT Which geographic markets need to be emphasized? WHERE WHEN How Often

Advertising Objectives WHO WHAT What months or seasons are best? WHERE WHEN How Often

Advertising Objectives WHO WHAT How often should the brand be advertised? WHERE WHEN How Often

Budgeting Considerations in Practice What is the Ad objective? How much are competitors spending? How much money is available?

Budgeting Methods Percent-of-Sales Budgeting Objective-and-Task Method Competitive Parity Method (match competitors method) Affordability Method

Percentage-of-Sales Budgeting A company sets a brand’s advertising budget by simply establishing the budget as a fixed percentage of past or anticipated sales volume Criticized as being illogical Why??

Objective-and-Task Method The most sensible and defendable advertising budgeting method Specify what role they expect advertising to play for a brand and then set the budget accordingly

The Competitive Parity Method Sets the ad budget by basically following what competitors are doing

Affordability Method Only the funds that remain after budgeting for everything else are spent on advertising Only the most unsophisticated and impoverished firms However, affordability and competitive considerations influence the budgeting decisions of all companies

Research Workshop Guiding Questions Specific Research Issues Lifeline Procedures Budget & Reimbursement Procedures

Research Workshop Guiding Questions Why did FIJI ask for our input? What is our “value added” to their efforts? What will distinguish my team’s efforts from all others’ work?

Research Workshop Specific Issues in Conducting Consumer Research Focus groups, surveys, observations Plan your questions ahead in detail Select sample(s) carefully Sensitivity, confidentiality, ethics (the Tribune test)

Research Workshop Lifeline Procedures How to communicate with FIJI Prescreen your questions Thank you’s Budget & Reimbursement Procedures Submit itemized receipts, batched, once per team If you aren’t sure, check ahead on what is reimbursable Cash payments to individuals for participation in research require documentation, SSNs.