Advertising Strategy

1
Advertising Strategy

• Session 7
• Summer 2008

2
Advertising Planning Process
Advertising Objectives
Target Market
Brand Positioning
Budget Decisions
Creative Strategy
Media Strategy
Campaign Evaluation
3
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
Hierarchy of effects Communication Process
Awareness
Interest
Liking, Preference
Purchase, Action
5
Creative Strategy

• Develop the USP unique selling proposition or
  the Creative Hook
• Unique Selling Proposition
• Translates brand positioning into a compelling
  message.
• Objective is Memorability

6
Creative StrategyEmotional vs. Rational Appeal

• Emotional appeal to psychological, social or
  symbolic needs. Pull at the consumers
  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?vsIkQRXkpwQI
• http//www.youtube.com/watch?vSdPLf3FoInE

7
Taxonomy of Emotional Appeals

• Fear appeal
• 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
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?vkVCGBohc20kmodere
  latedsearch
• http//www.youtube.com/watch?vf3mXaATLeRM
• http//www.youtube.com/watch?vzV-yGp4l8B8
• Fantasy
• seen often in cosmetics advertising
• http//www.youtube.com/watch?vr1g5qcKcVCM

9
Types of Rational / Informational Appeal

• Technical Expertise or Scientific Evidence
  (CrestLook ma no cavities)
• Comparative Product features vs. competition
  (Nike vs. Reebok)
• http//www.youtube.com/watch?vxhiyDQNmEjY
• Advantages
• High ability to get attention
• Helps in competitive positioning
• Disadvantages
• Advertise the competition. Makes competition more
  salient.
• Can use only if there is clear objective
  superiority for the advertised attribute.

10
Media Decisions

• Define the target market.
• Quantitative Measures
• 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
• Frequency A measure of how many times an
  average individual in the target market who have
  been reached .

11
Media Decisions

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

12
Message

• Good advertising creative strategy translates the
  brands 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
Analysis Framework
Perceptual mapping
Company Analysis Marketing Myopia
First mover advantages
Customer Analysis
Competitor
Analysis
Segmentation
Positioning
Marketing Orientation
Marketing Strategy
Branding
Product
Pricing process Pricing and innovation (ODI)
Product Line Strategy (Cambridge)
Price
Promotion
Place
Going to market (Goodyear)
Direct marketing (Calyx)
Market