1. Overview of Advertising Management
Chapter Eight
Overview of Advertising Management

2. Advertising Functions
Informing
Persuading
Reminding
Adding Value
Assisting Other Company Efforts 2

3. Advertising Functions
Informing
Makes consumers aware, educates them about the features and benefits, and facilitates the creation of positive brand images
Facilitates the introduction of new brands and increases demand for existing brands
Performs another information role by: 3

4. Advertising Functions
Persuading
Persuades customers to try advertised products and services
Primary demand:
Secondary demand: 4

5. Persuading
Gillette MACH3

6. Advertising Functions
Reminding
Keeps a company’s brand fresh in the consumer’s memory
Influences brand switching by: 6

7. Advertising Functions
Adding Value
Three basic ways by which companies can add value
innovating
improving quality
altering consumer perceptions
Advertising adds value to brands by: 7

8. Advertising Functions
Assisting Other Company Efforts
Advertising is just one member of the marketing communications team
Sometimes, an assister that facilitates other company efforts in the marketing communications process
Examples? 8

9. The Advertising Management Process
Advertising Strategy
Setting Objectives
Formulating Budgets
Creating Ad messages
Selecting Ad Media and Vehicles
Strategy Implementation
Assessing Ad Effectiveness 9

10. Setting Advertising Objectives
Expression of management consensus
Guides the budgeting, message, and media aspects of advertising strategy
Provide standards against which results can be measured 10

11. Advertising Objectives
WHO
WHAT
Several categories of advertising objectives guide advertising strategy
WHERE
WHEN
How Often

12. Advertising Objectives
WHO
WHAT
Specify target market
WHERE
WHEN
How Often

13. Advertising Objectives
Kellogg’s Special K
Target
women in the age group
16-35 who are concerned
with their physical
appearance

14. Advertising Objectives
Quaker Oats
Target
middle-aged males
who are robust yet
concerned with their
health

15. Advertising Objectives
WHO
What emphasis?
What goals?
WHAT
Emphasis: the features and benefits to be emphasized and the emotions to be evoked
Goals: objectives that need to be accomplished at the present stage in a brand’s life cycle
WHERE
WHEN
How Often

16. Advertising Objectives
WHO
WHAT
Which geographic markets need to be emphasized?
WHERE
WHEN
How Often

17. Advertising Objectives
WHO
WHAT
What months or seasons are best?
WHERE
WHEN
How Often

18. Advertising Objectives
WHO
WHAT
How often should the brand be advertised?
WHERE
WHEN
How Often

19. Budgeting Considerations in Practice
What is the Ad objective?
How much are competitors spending?
How much money is available?

20. Budgeting Methods Percent-of-Sales Budgeting Objective-and-Task Method
Competitive Parity Method
(match competitors method)
Affordability Method

21. Percentage-of-Sales Budgeting
A company sets a brand’s advertising budget by simply establishing the budget as a fixed percentage of past or anticipated sales volume
Criticized as being illogical
Why??

22. Objective-and-Task Method
The most sensible and defendable advertising budgeting method
Specify what role they expect advertising to play for a brand and then set the budget accordingly

23. The Competitive Parity Method
Sets the ad budget by basically following what competitors are doing

24. Affordability Method
Only the funds that remain after budgeting for everything else are spent on advertising
Only the most unsophisticated and impoverished firms
However, affordability and competitive considerations influence the budgeting decisions of all companies

25. Research Workshop Guiding Questions Specific Research Issues
Lifeline Procedures
Budget & Reimbursement Procedures

26. Research Workshop Guiding Questions
Why did FIJI ask for our input? What is our “value added” to their efforts?
What will distinguish my team’s efforts from all others’ work?

27. Research Workshop Specific Issues in Conducting Consumer Research
Focus groups, surveys, observations
Plan your questions ahead in detail
Select sample(s) carefully
Sensitivity, confidentiality, ethics (the Tribune test)

28. Research Workshop Lifeline Procedures How to communicate with FIJI
Prescreen your questions
Thank you’s
Budget & Reimbursement Procedures
Submit itemized receipts, batched, once per team
If you aren’t sure, check ahead on what is reimbursable
Cash payments to individuals for participation in research require documentation, SSNs.