1. 1 Ganesh Iyer Advertising Strategy Session 7 Summer 2008

2. 2 Ganesh Iyer Advertising Planning Process Advertising Objectives Budget Decisions Creative Strategy Campaign Evaluation Media Strategy Brand Positioning Target Market

3. 3 Ganesh Iyer Advertising Objectives Create awareness for new products Inform consumers »of product features and benefits »price changes »Important for building primary demand Persuasion »Build brand preference or change buyer perceptions »especially important for building demand in competitive markets. Reminder advertising: maintain top-of-mind awareness

4. 4 Ganesh Iyer Hierarchy of effects Communication Process Awareness Interest Liking, Preference Purchase, Action

5. 5 Ganesh Iyer Creative Strategy l Develop the USP “unique selling proposition” or the “Creative Hook” Unique Selling Proposition l Translates “brand positioning” into a compelling message. l Objective is “Memorability”

6. 6 Ganesh Iyer Creative Strategy: Emotional vs. Rational Appeal Emotional = appeal to psychological, social or symbolic needs. “Pull at the consumer’s heartstrings” Rational = provide information about functional and utilitarian aspects of the products. Shift towards emotional execution strategy in the later part of the product lifecycle »Intense competition and proliferation of substitutable products (Michelin) »Critical to increase “Product involvement” »http://www.youtube.com/watch?v=sIkQRXkpwQIhttp://www.youtube.com/watch?v=sIkQRXkpwQI »http://www.youtube.com/watch?v=SdPLf3FoInEhttp://www.youtube.com/watch?v=SdPLf3FoInE

7. 7 Ganesh Iyer Taxonomy of Emotional Appeals Fear appeal l can be an effective motivator but has the danger of alienating consumers »Show the consumer how to avoid the problem. »Provide concrete supporting information

8. 8 Ganesh Iyer Taxonomy of Emotional Appeals Humor »“Memorability” device. »Humor should not clutter the product benefits. »Execution detail: Show consumer how to avoid the problem. »Pre-test to check if consumer –i) recalls product benefit –ii) Attitude_product versus Attitude_ad = will the message be persuasive and will the product be taken seriously. »http://www.youtube.com/watch?v=kVCGBohc20k&mode=related&search=http://www.youtube.com/watch?v=kVCGBohc20k&mode=related&search »http://www.youtube.com/watch?v=f3mXaATLeRMhttp://www.youtube.com/watch?v=f3mXaATLeRM »http://www.youtube.com/watch?v=zV-yGp4l8B8http://www.youtube.com/watch?v=zV-yGp4l8B8 Fantasy »seen often in cosmetics advertising »http://www.youtube.com/watch?v=r1g5qcKcVCMhttp://www.youtube.com/watch?v=r1g5qcKcVCM

9. 9 Ganesh Iyer Types of Rational / Informational Appeal Technical Expertise or Scientific Evidence: (Crest…“Look ma no cavities”) Comparative: Product features vs. competition (Nike vs. Reebok) »http://www.youtube.com/watch?v=xhiyDQNmEjYhttp://www.youtube.com/watch?v=xhiyDQNmEjY l Advantages »High ability to get attention »Helps in competitive positioning l Disadvantages »Advertise the competition. Makes competition more salient. »Can use only if there is clear objective superiority for the advertised attribute.

10. 10 Ganesh Iyer Media Decisions l Define the target market. Quantitative Measures l Reach: the percentage of people in the target market who are exposed to the ad campaign during the defined time duration »70% of the target market during the first three months of the campaign l Frequency: A measure of how many times an average individual in the target market who have been reached.

11. 11 Ganesh Iyer Media Decisions Advertising Exposure l Gross Rating Points = 70(Reach) 4(Frequency) = 280 GRP’s l 1GRP = 1 exposure to 1% of the audience. Qualitative Measures l Impact; is the qualitative aspect of the medium »Newsweek vs. The National Enquirer »Sports illustrated vs. Time for tennis racquets l Trade-off between reach and frequency l Pulsing vs. Continuity »Pulsing most critical for new products. Why? »Continuity needed when faced with intense competition

12. 12 Ganesh Iyer Message Good advertising creative strategy translates the brand’s positioning statement into a persuasive and memorable message. A great creative will provide lasting impact even if advertising budgets are constrained. “ How you say it is as critical as what you say”

13. 13 Ganesh Iyer Analysis Framework Market Customer Analysis Competitor Analysis Company Analysis Marketing Myopia Marketing Strategy Product Price Promotion Place Marketing Orientation Perceptual mapping SegmentationPositioning First mover advantages Branding Pricing process Pricing and innovation (ODI) Going to market (Goodyear) Direct marketing (Calyx) Product Line Strategy (Cambridge)