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

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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.

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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

16. 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)

17. 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

18. 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

19. 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.

20. 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.

21. 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.