1. Advertising Professor S.J. Grant Spring 2006 BUYER BEHAVIOR, MARKETING 3250

2. Outline Introduction to advertising It works! How it works Memory and wearout Keys to effectiveness A case study: Milk

3. Advertising Works!  1980s: Reebok’s share of the athletic shoe market grew from 0 to 33% share in less than 2 years  1990s: P&G grew Pantene shampoo from a small share brand to the category leader  2000s: Dreyer’s new Dreamery ice cream attained more than a 10% share in 18 months

4. Source: Cahners Advertising Research Report 120.12 (Boston: Cahners Publishing Co.). Advertising Effectiveness

5. Memory & Wearout Repetition (for example, advertising exposures) aids long-term storage of brand name and usually boosts favorableness of evaluation At some point, too many repetitions cause wearout to occur

6. Memory & Wearout Number of Repetitions Evaluation Wearout occurs

7. Memory & Wearout Why does wearout occur? Fatigue, boredom set in Message recipient blocks incoming information Rehearses own thoughts Counterargues Unmotivated to allocate processing resources to message

8. Memory & Wearout How many repetitions before wearout occurs? Depends on message complexity What is message complexity? Information complexity Level of detail Humor Musical or auditory richness Ambiguity Incongruity

9. Paradox of Familiarity Novices and experts will process messages differently Novices may not apprehend message at first, pay more attention Experts, assuming knowledge, will pay little attention After a period, experts may return attention

10. Paradox of Familiarity Number of Repetitions Evaluation Experts Novices

11. Breaking through Boredom Skepticism and counterargumentation Information clutter Tapping a powerful emotion Providing news Keys to Effective Advertising

12. Case Study: Milk National Fluid Milk Processor Promotion Board launched 2 campaigns in effort to revive a 20-year decline in milk sales Milk Producers launch Got Milk? Campaign in November 1993 Dairy Farmers introduce Milk Mustache print advertising campaign in 1995

13. Case Study: Milk Mustache Who is the target for the Milk Mustache campaign? Began with consumer insight based on a correlation: mothers who drink milk have children who drink milk $35 million print campaign sought to reach adults (non-users) Execution: Celebrity, athlete endorsers

14. "What's my bag? It's milk, baby, yeah! The calcium in lowfat or fat free milk helps to prevent osteoporosis and keep my bones strong. So I can keep my mojo working overtime. Oh, behave." Milk Mustache

15. "Lick it up. After rock and rolling all night, we need nourishment. And every drop of chocolate milk has the same vitamins and minerals regular milk has. All the more reason to have a really, really long tongue." Milk Mustache

16. "Make ours doubles. My sister and I hate to lose -- nutrients, that is. So we drink milk. It has nine essential nutrients active bodies need. You might say it's the only thing we serve. Milk Mustache

17. Case Study: Milk Mustache Who is the target? Adults who are nonusers What is the positioning? For nonusers who want to be strong, healthy, attractive, athletic, sexy, smart New users

18. Reaction 36% of women said campaign would make them drink more milk 70% who viewed entire campaign now consider milk cool, contemporary 86% thought milk is delicious after seeing campaign 1% and skim have made sizable gains and 2% and whole have had sizable losses Case Study: Milk Mustache

19. Case Study: Milk Strategic errors? Convincing adults to reconsider milk as a beverage choice requires delivery of news Campaigns introduce little news Benefits of milk are diffuse, wide- ranging, conflicting Milk is touted as beauty aid, but is associated with fat content

20. Case Study: Got Milk? Who is the target? Adults who already consume milk with food What is the positioning? For milk drinkers who never want to be caught without milk Incremental usage Focused on developing heavy users

21. Case Study: Milk Dairy Council declares the milk campaigns a success – “decline in milk sales has been halted” Next step: product changes Dean’s packaging “Chug” to make milk portable, convenient Suiza producing lowfat milk with consistency of 2%

22. 26 25 24 198819901992199419961998 2000 Gallons Source: USDA Ad campaign Case Study: Milk

23. Business results? Since 1945, however, milk consumption has fallen steadily, reaching a record low of just under 23 gallons per person in 2001 Americans consuming less than 8 gallons per person of whole milk 1945: nearly 41 gallons 1970: 25 gallons In contrast, per capita consumption of total lower fat milks was 15 gallons Interestingly, cheese consumption is rising In 2001, Americans consumed 30 pounds of cheese

24. Case Study: Milk Product changes Dean’s offers milk in “Chug” bottles Suiza is launching skim milk with taste of 2% aimed at women Lowfat formula for children Flavored milk 6% of consumption represents 40% of new growth