Advertising

1
Advertising

• Chapter 19

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Advertising

• Any PAID form of nonpersonal promotion of ideas,
  goods, or services by a businesses or sponsor.
  
• Distinguished by three factors
• Paid
• Uses a set form
• Identifies the sponsor of the message

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Advertising

• Why Advertise?
• Reach a large number of people
• Can control the content
• Repeated message
• Why Not Advertise?
• Expensive
• Can be wasteful
• Brief

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Product Advertising

• Three Forms
• Pioneering (informational) tells people what a
  product is, what it can do, and where it can be
  found.
• Competitive (persuasive) promotes a specific
  brands features and benefits.
• Reminder reinforces previous knowledge of a
  product.

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Institutional Advertising

• Build goodwill or an image for an organization.
• Advocacy states the position of a company on an
  issue.
• Pioneering Institutional announces what a
  company is, what it can do, or where it is
  located.
• Competitive Institutional promotes the
  advantages of one product class over another.
• Reminder Institutional brings the companys
  name to the attention of the target market again.
  

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Developing The Advertising Program

• Identifying the Target Audience
• Specifying Advertising Objectives
• Setting the Advertising Budget
• Designing the Advertisement
• Message Content
• Creating the Message

• Pretest What the Ads Will Say
• Choose the Media and Media Schedule
• Evaluate the Advertising

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Developing The Advertising Program

• Identifying the Target Audience
• Try to get inside the targets head and
  understand how to create a message that he or she
  will understand and respond to.
• Specifying Advertising Objectives
• Do you want to inform persuade, or remind?
• Setting Advertising Budget
• Objective-Task will be the most effective

8
Designing the Advertisement

• Advertising Appeal the central idea of the ad

• Lifestyle shows a person or persons attractive
  to the target market.
• Fear Appeals shows negative effects of not
  using product.
• Sex Appeals rely on sexuality to get consumers
  attention.
• Humorous Appeals a way to break through ad
  clutter.
• Slogans and Jingles link the brand to a simple
  linguistic device that is memorable.

• USP (unique selling proposition) one clear
  reason why one product is better at solving a
  problem.
• Comparative Advertising names one or more
  competitors.
• Demonstration Shows product in action.
• Testimonial A celebrity, expert, or man in the
  street endorses product.
• Slice of Life dramatized scene from everyday
  life

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Designing the Advertisement

• Parts of a Print Advertisement
• Headline
• Copy
• Illustration
• Signature

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Headline

• Lettering, slogan, or saying that gets the
  readers attention and leads them to read the
  rest of the ad.
• Just Do It
• Cars like us, people love us.
• Taste the Rainbow

• Drivers Wanted
• Like a Rock
• . . .Gives you Wings

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Headline
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Headline Techniques

• Alliteration (repeating constant sounds)Ruffles
  Have Ridges
• Paradox (Contradiction that could be true)It
  Will Fill You Up, But it Wont Weigh You Down
• Rhyme The Quicker Picker-Upper
• Pun Every Litter Bit Hurts
• Play on WordsFor Soft Babies and Baby Soft
  Hands

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Copy

• The selling message in a written advertisement.
• Could be a few words to a few paragraphs.
• Create Awareness
• Include Competencies
• Arouse Interest
• Educate Consumer
• Write in Active Voice

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Copy
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Illustration

• Photograph or drawing used in print advertising.
  
• Primary way to attract customers
• Features of Product
• Advantages of owning product
• Uses of Product

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Illustration
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Signature

• Logo, Name, Address, Telephone Number, Hours
• Should get instant recognition

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Signature
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Designing the Advertisement

• Elements Of a Good RADIO Ad
• Attention there should be some element of the
  ad that attracts interest
• Promise of Benefit there should be some benefit
  from accepting ads premise
• Credibility the premise of the ad should be
  believable
• Persuasiveness the ad should sell

20
Radio Advertisements

• Elements Of A Good Ad
• Interest Once you capture a listeners
  attention, you must say something to sustain
  their attention.
• Desire the listener should want to do business
• Action you want the ad to cause the listener to
  want to do something.

21
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22
Radio Advertisements

• Final Guidelines
• Talk to listener
• Write short sentences
• Dont waste words
• Avoid being formal
• Use an active voice
• Watch for clichés

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Pretest What the Ads Will Say

• Pretesting the Advertising
• Portfolio Tests
• Jury Tests
• Theater Tests

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Selecting the Right Media

• Media agencies, means, or instruments used to
  convey messages
• Basic Terms
• Reach the number of different people or
  households exposed to an advertisement.
• Rating the percentage of households in a market
  that are tuned to a particular TV show or radio
  station.
• Frequency the average number of times a person
  in the target audience is exposed to a message.
• Gross Rating Point (GRP) reach x frequency.
• Cost per Thousand (CPM) the cost of reaching
  1,000 individuals.

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Broadcast Media

• Television Advertising
• Message with sound, action, and color
• Advantages
• Can be mostcreative
• People believe what they see
• Seems more personal
• Can reach mass audience

• Disadvantages
• Highest production cost
• Audience size is not assured
• Considered a nuisance

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Broadcast Media

• Radio Advertising
• Reaches 96 of population
• Advantages
• Easy to Target
• Message can bechanged easily
• Mobile Medium

• Disadvantage
• Short life span
• Lack of visual involvement

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Print Media

• Magazine Advertising
• Over 5,000 magazines and special interest
  publications
• Advantages
• Easy to target
• Read more slowly thannewspapers
• High print quality
• Longer life

• Disadvantages
• Less Mass Appeal
• More expensive than newspaper
• Not as timely as newspapers

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Print Media

• Newspaper Advertising
• Over 50 of the U.S. population reads a
  newspaper.
• Advantages
• Large readership
• Circulation is known
• The cost is relatively low
• Easy to change

• Disadvantages
• Wasted circulation
• The life of the ad is limited
• Quality is poor
• Hard to target

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Internet

• Internet Advertising
• Web sites, banner ads, pop-ups, search engine and
  directory listings
• Advantages
• Utilize visual and audiocapabilities
• Interactive

• Disadvantages
• Difficult to measure
• Technological capabilities

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Print Media

• Outdoor Advertising
• Advantages
• Highly Visible
• Relatively inexpensive
• 24-Hours per day
• Geographically tailored
• Good reach and frequency

• Disadvantages
• Message must be short
• Makeup of audience is unknown
• Government regulations

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Print Media

• Transit Advertising
• Trains, buses, taxis, near subways
• Advantages
• Reaches wide and captiveaudience
• Economical
• Defined Market

• Disadvantages
• Unavailable in smaller towns
• Graffiti
• Restricted to certain areas

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Print Media

• Directory Advertising
• Telephone Directories
• Advantages
• Relatively Inexpensive
• In 98 of Households

• Disadvantages
• Only printed yearly
• Print quality
• Transition to the internet

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Print Media

• Direct Mail
• Sent directly into the homes of prospective
  customers
• Advantages
• Highly targeted
• Flexible with timing
• Wide choice of formats
• May use catalogs to actually close the sale

• Disadvantages
• Access to database
• Low response level
• Higher cost
• Perceived as junk mail

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Scheduling Advertising

• The advertising schedule you choose depends on
  buyer turnover, purchase frequency, forgetting
  rate.
• Continuous Schedule Maintains a steady stream
  of advertising throughout the year (Breakfast
  Cereal).
• Pulse Schedule varies the amount of advertising
  throughout the year based on when the product is
  likely to be in demand (Toys).
• Fighting Schedule an extreme form of pulsing in
  which advertising appears in short, intense,
  bursts alternating with periods of no advertising
  (Snow Skis).

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Evaluating The Communication Program

• Posttesting Advertising
• Aided Recall (Recognition-Readership)
• Unaided Recall
• Attitude Tests
• Inquiry Tests
• Sales Tests
• Making Needed Changes

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Carrying out the Advertising Program

• Carrying Out the Advertising Program
• Full-Service Agency provides services including
  market research, media selection, copy
  development, artwork, and production.
• Limited Service Agency specialize in one aspect
  of the advertising process.
• In-House made up of the companys own
  advertising staff.

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Return on InvestmentShort-Term Example

• Information
• Advertising Investment 3,465
• Profit Margin 40
• Average Sale 450
• Closing Ratio 65
• Return on Investment 25

• This advertising program will reach over 112,000
  listeners ages 12-34 a minimum of 3.0 times. One
  out of 3,027 people who hear your ad need to come
  in the door.

• (3,465 x (1ROI)) 4,331 Net Return
• 4,331/.40 10,828 Gross Return
• 10,828/450 24 Sales
• 24/.65 37 Customers

• Break-even (0 profit) 30 Customers
• 20 Return (693 profit) 36 Customers
• 30 Return (1,040 profit) 39 Customers