1. Advertising Chapter 17 Lecture Slides Solomon, Stuart, Carson, & Smith
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2. Chapter Learning Objectives
When you have completed your study of this chapter, you should be able to:
Tell what advertising is and describe the major types of advertising.
Describe the major players in the advertising process.
Tell how advertisers develop an advertising campaign.
Discuss the challenges facing advertising.
Explain how advertisers evaluate the effectiveness of the campaign.
Describe the major advertising media and the important considerations in media planning.
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3. Introduction to the Topic
This is the second of three chapters on promotion, the previous chapter dealing with the strategy side of an integrated marketing communications program, while this chapter focuses solely on advertising.
To refresh our memory, advertising is one component of an IMC, which is part of promotion in the marketing mix.
The purpose of promotion is to communicate what the organization has to offer to its intended target market(s) and other interested stakeholders.
Advertising just happens to be the most fun part of the program.
promotion p444
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4. The Nature of Advertising
Advertising: non-personal communication paid for by and identified sponsor using mass media to persuade or inform.
Advertising can come in many different forms and for different purposes.
Product advertising: an advertising message that focuses on a specific good or service. The majority of advertising is done to promote specific products.
Institutional advertising: an advertising message that promotes the activities, personality, or point of view of an organization or company.
Such as this advertisement for Pfizer.
advertising p474
product advertising p474
institutional advertising p475
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5. The Nature of Advertising (continued)
Advocacy advertising: a type of public service advertising provided by an organization that is seeking to influence public opinion on an issue because it has some stake in the outcome.
Lobby groups such as the NRA would do this type of advertising.
Public service advertisements: advertising run by the media without charge for not-for-profit organizations or to champion a particular cause.
Such as this one for a camp for children with AIDS.
Advertising agencies will often support these organizations by working on such advertising on a pro bono basis.
advocacy advertising p475
public service advertisements p475
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6. ©Copyright 2003 Pearson Education Canada Inc.
Who Does Advertising?
An advertising agency is a service firm that specializes in creating advertising for client companies. Agencies will vary in the amount and variety of services offered, such as:
Account management
Creative services
Marketing research
Media planning
advertising agency p475
The value created by an agency is in translating the communications objectives of the client into activities that accomplish those objectives.
Today’s full-service agencies prefer to call themselves communications services companies to reflect the variety of services offered.
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7. Developing an Advertising Campaign
Advertising campaign: a coordinated, comprehensive plan that carries out promotion objectives and results in a series of advertisements placed in media over a period of time.
Creative strategy: the process that turns a concept into an advertisement.
Advertising appeal: the central idea or theme of an advertising message.
This is the most difficult part of creating advertising, which is coming up with ideas as to how to express a message.
For example, what the heck is this?
advertising campaign p475
creative strategy p479
advertising appeal p479
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8. Types of Advertising Appeals
Unique selling proposition (USP): an advertising appeal that focuses on one clear reason why a particular product is superior to any others.
Comparative advertising between competing products.
Demonstration showing the product being used.
Testimonial using a credible source to tell of its benefits.
Slice-of-life showing how the products fits everyday life.
Lifestyle showing the expressive or symbolic qualities of the product.
Fear appeals to scare the viewer into changing their attitude.
Sex appeals to attract attention and promote a product.
Humorous appeals to break through the clutter and get noticed.
uniques selling proposition p480
other types of advertising appeals p480-1
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9. Developing an Advertising Campaign
Pretesting: a research method that seeks to minimize mistakes by getting consumer reactions to advertising messages before they appear in the media.
Copy testing: a marketing research method that seeks to measure the effectiveness of advertisements by determining whether consumers are receiving, comprehending, and responding to the advertisement accordingly.
Copy testing can be used for:
concept testing
test commercials
finished testing
pretesting p481
copy testing p481
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10. ©Copyright 2003 Pearson Education Canada Inc.
Choosing a Media
Media planning: the process of developing media objectives, strategies, and tactics for use in an advertising campaign. The goal is to reach the target audience in the most effective manner.
Aperture: the best place and time to reach a person in the target market group. This requires an in-depth knowledge of the segmentation strategy being used and the characteristics of the target market(s).
Computer media: communications media that transmit information through the Internet or via messages.
Out-of-home media: communications media that reach people in public places.
media planning p482
aperture p482
computer media p484
out of home media p485
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11. ©Copyright 2003 Pearson Education Canada Inc.
Media Scheduling
Media schedule: the plan that specifies the exact media to use and when.
Advertising exposure: the degree to which the target market will see an advertising message placed in a specific vehicle.
Impressions: the number of people who will be exposed to a message placed in one or more media vehicles.
Reach: the percentage of the target market that will be exposed to the media vehicle.
media schedule p485
advertising exposure p486
impressions p486
reach p486
Figure 17.1
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12. Media Scheduling (continued)
Frequency: the number of times a person in the target group will be exposed to the message.
Gross Rating Points (GRP’s): a measure used for comparing the effectiveness of different media vehicles: average reach times frequency.
Cost per thousand (CPM): a measure used to compare the relative cost effectiveness of different media vehicles that have different exposure rates: the cost to deliver a message to 1,000 people or homes.
frequency p486
gross rating points p486
cost per thousand p486
Figure 17.1
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13. Evaluating Advertising
Post-testing: research conducted on consumers’ responses to actual advertising messages they have seen or heard.
Unaided recall: a research technique conducted by telephone survey or personal interview that asks how much of an advertisement a person remembers during a specified period of time.
Aided recall: a research technique that uses clues to prompt answers from people about advertisements they might have seen.
Attitudinal measures: a research technique that probes a consumer’s beliefs or feelings about a product before and after being exposed to messages about it.
post-testing p488
unaided recall p489
aided recall p489
attitudinal measures p489
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14. Challenges Facing Advertising
The advertising industry faces a number of challenges in today’s marketing environment:
Erosion of brand loyalty due to emphasis on price.
Effect of technology putting more power in the hands of the consumer.
Greater emphasis on point of purchase factors when making purchase decisions.
Competition from non-traditional sources using special effects and technology.
Cluttered advertising environment makes it difficult to get noticed.
Cynical consumers are turned off by advertising and are tuning out.
post-testing p488
unaided recall p489
aided recall p489
attitudinal measures p489
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15. ©Copyright 2003 Pearson Education Canada Inc.
Famous Last Words…
Advertising is a big part of our daily lives, whether we choose to notice it or not.
Advertising has tremendous power to communicate to the masses, if we could just figure out who those masses are!
©Copyright 2003 Pearson Education Canada Inc.