1. © 2009 South-Western, Cengage LearningMARKETING 1 Chapter 16 BE CREATIVE WITH ADVERTISING 16-1What Is Advertising? 16-2Advertising Planning 16-3Advertising Execution and Evaluation CHAPTER 16

2. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 2 ©WINTERFRESH POLAR ICE Focus Questions: Advertising is capable of communicating messages in many different ways, sometimes several messages at once. In this Winterfresh ad, the main message is communicated visually. What is the main message? How does it make you feel? Does it make you want to try Winterfresh gum?

3. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 3 WHAT IS ADVERTISING? GOALS Define product advertising and brand advertising and distinguish between the two types. Describe the major roles at the an advertising agency. 16-1

4. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 4 Two Approaches to Advertising Product advertising Brand advertising

5. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 5 The Advertising Agency Specializes in creating advertising Major roles at the an advertising agency Account executive Account planner Media planner Art director Copywriter Creative director Producer

6. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 6 ADVERTISING PLANNING GOALS Describe the process of setting objectives, determining the budget, and developing the creative strategy. Describe the different types of media and the factors that must be considered when selecting which media to use. 16-2

7. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 7 The Planning Process Set objectives Determine the budget What you can afford Percentage of sales Competition matching Objective and task Develop the creative strategy

8. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 8 Advertising Objective ElementsPlan for Seaside Resorts Sales ObjectiveIncrease reserved summer rentals by 10% by February 15 CommunicationMake reservations by February 15 and save $100 off the weekly rate Target MarketFamilies living in California who spend one week or more at the beach every year

9. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 9 Select the Media Cost Reach Frequency Lead time Creative, brand, and corporate fit

10. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 10 Advantages and Disadvantages of Major Advertising Media Radio Highly mobile Relatively low cost Short lead time Highly segmented markets Message limited to audio Strong potential for interference from other sources Television Reaches large audiences Low cost per viewer Has emotional impact Highly segmented markets High total cost Long lead time Strong potential for interference from other sources

11. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 11 Advantages and Disadvantages of Major Advertising Media Direct Mail Highly segmented Easy to measure effectiveness Stimulates action Hidden from competition Often considered junk mail Expensive Outdoor Low cost High visibility Short lead time Increasingly regulated Message length is limited Strong potential for interference from other sources

12. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 12 Advantages and Disadvantages of Major Advertising Media Newspapers Short lead time Large circulation Can carry response vehicles (coupons) Inexpensive Lower print quality Short life Limited segmentation High clutter (competing ads) Magazines Long life span Can carry response vehicles (coupons, response cards) High pass-along rate Highly segmented High cost Long lead time

13. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 13 Advantages and Disadvantages of Major Advertising Media Internet Highly targeted Instantly measurable Built-in response vehicles Interactive Limited audience High clutter (competing ads) Security and privacy concerns

14. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 14 Questions to Consider When Selecting Media Reach What is the overall circulation or viewership? Will it reach the target audience? Is there a strong pass-along rate? Frequency How often will the target audience see the advertising message? How many viewings does it take for the message to “stick”? After how many viewings does “wear-out” occur? Cost What is the total cost of the medium? What is the cost per viewer? Does the cost fit into the advertising budget? Is it the most effective use of advertising dollars?

15. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 15 Questions to Consider When Selecting Media Creative, Brand, and Corporate Fit Does the medium fit the message? Is the medium a good fit for the brand? Does the medium fit the company philosophy? Lead Time How long before running the advertising does the medium outlet require the ad materials? How flexible is this medium? Can the ad materials be ready by the medium’s deadline?

16. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 16 ADVERTISING EXECUTION AND EVALUATION GOALS Name common creative advertising formats. Explain what happens during the production phase of the advertising process. Differentiate between quantitative and qualitative research. Name the four types of advertising regulation. 16-3

17. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 17 Creative Formats Musical Dramatization Testimonial Comedy Image advertising Product demonstration Competitive The creative concepts Creative Development

18. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 18 Production Strategic Brief Creative Development Client Presentation Creative Research Production Client Presentation Advertising Runs

19. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 19 Gauging Advertising Effectiveness Quantitative research Qualitative research

20. © 2009 South-Western, Cengage LearningMARKETING Chapter 16 20 Regulating Advertising Government regulation Network regulation Regulatory board Competitive regulation Corrective action Cease-and-desist order corrective ads fine