Advertising

1
Advertising

• Professor S.J. Grant
• Spring 2006

BUYER BEHAVIOR, MARKETING 3250
2
Outline

• Introduction to advertising
• It works!
• How it works
• Memory and wearout
• Keys to effectiveness
• A case study Milk

3
Advertising Works!

• 1980s Reeboks share of the athletic shoe market
  grew from 0 to 33 share in less than 2 years
• 1990s PG grew Pantene shampoo from a small
  share brand to the category leader

• 2000s Dreyers new Dreamery
• ice cream attained more than
• a 10 share in 18 months

4
Advertising Effectiveness
Source Cahners Advertising Research Report
120.12 (Boston Cahners Publishing Co.).
5
Memory Wearout

• Repetition (for example, advertising exposures)
  aids long-term storage of brand name and usually
  boosts favorableness of evaluation
• At some point, too many repetitions cause wearout
  to occur

6
Memory Wearout
Wearout occurs
Evaluation
Number of Repetitions
7
Memory Wearout

• Why does wearout occur?
• Fatigue, boredom set in
• Message recipient blocks incoming information
• Rehearses own thoughts
• Counterargues
• Unmotivated to allocate processing resources to
  message

8
Memory Wearout

• How many repetitions before wearout occurs?
• Depends on message complexity
• What is message complexity?
• Information complexity
• Level of detail
• Humor
• Musical or auditory richness
• Ambiguity
• Incongruity

9
Paradox of Familiarity

• Novices and experts will process messages
  differently
• Novices may not apprehend message at first, pay
  more attention
• Experts, assuming knowledge, will pay little
  attention
• After a period, experts may return attention

10
Paradox of Familiarity
Experts
Evaluation
Novices
Number of Repetitions
11
Keys to Effective Advertising

• Breaking through
• Boredom
• Skepticism and counterargumentation
• Information clutter
• Tapping a powerful emotion
• Providing news

12
Case Study Milk

• National Fluid Milk Processor Promotion Board
  launched 2 campaigns in effort to revive a
  20-year decline in milk sales
• Milk Producers launch
• Got Milk? Campaign
• in November 1993
• Dairy Farmers introduce
• Milk Mustache print
• advertising campaign
• in 1995

13
Case Study Milk Mustache

• Who is the target for the Milk Mustache campaign?
• Began with consumer insight based on a
  correlation mothers who drink milk have children
  who drink milk
• 35 million print campaign sought to reach adults
  (non-users)
• Execution Celebrity, athlete endorsers

14
Milk Mustache
15
Milk Mustache
16
Milk Mustache
17
Case Study Milk Mustache

• Who is the target?
• Adults who are nonusers
• What is the positioning?
• For nonusers who want to be strong, healthy,
  attractive, athletic, sexy, smart
• New users

18
Case Study Milk Mustache

• Reaction
• 36 of women said campaign would make them drink
  more milk
• 70 who viewed entire campaign now consider milk
  cool, contemporary
• 86 thought milk is delicious after seeing
  campaign
• 1 and skim have made sizable gains and 2 and
  whole have had sizable losses

19
Case Study Milk

• Strategic errors?
• Convincing adults to reconsider milk as a
  beverage choice requires delivery of news
• Campaigns introduce little news
• Benefits of milk are diffuse, wide-ranging,
  conflicting
• Milk is touted as beauty aid, but is associated
  with fat content

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Case Study Got Milk?

• Who is the target?
• Adults who already consume milk with food
• What is the positioning?
• For milk drinkers who never want to be caught
  without milk
• Incremental usage
• Focused on developing heavy users

21
Case Study Milk

• Dairy Council declares the milk campaigns a
  success decline in milk sales has been halted
• Next step product changes
• Deans packaging Chug to make milk portable,
  convenient
• Suiza producing lowfat milk with consistency of
  2

22
Case Study Milk
26
Ad campaign
25
Gallons
24
1988 1990 1992 1994 1996 1998 2000
Source USDA
23
Case Study Milk

• Business results?
• Since 1945, however, milk consumption has fallen
  steadily, reaching a record low of just under 23
  gallons per person in 2001
• Americans consuming less than 8 gallons per
  person of whole milk
• 1945 nearly 41 gallons
• 1970 25 gallons
• In contrast, per capita consumption of total
  lower fat milks was 15 gallons
• Interestingly, cheese consumption is rising
• In 2001, Americans consumed 30 pounds of cheese

24
Case Study Milk

• Product changes
• Deans offers milk in Chug bottles
• Suiza is launching skim milk with taste of 2
  aimed at women
• Lowfat formula for children
• Flavored milk
• 6 of consumption represents 40 of new growth