Chapter 11: Management of Advertising

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Chapter 11Management of Advertising
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The Nature of Advertising

• Advertising
• has verbal and/or visual message
• sponsor is identified
• delivery is through (usually mass) media
• there is payment for carrying the message
• tailor-made media and messages

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Advertising to Target Audiences

• classified by the target audience to which it is
  directed
• consumer advertising generally appears in mass
  media and is directed to end consumers may be
  product or institutional in nature
• business-to-business advertising is often called
  trade advertising and is directed to a business
  market

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What is Being Advertised?

• product advertising is designed to promote the
  sale of a specific product or service
• may be direct-action, quick-response
• may be indirect-action over a longer time
• institutional/corporate advertising promotes the
  firm or tries to create a positive image
• may promote customer service
• or send a public service message

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What Are the Objectives?

• primary demand
• selective demand
• co-operative advertising

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The Cost of Advertising

• traditional mass media are losing ground to new
  media like direct mail and the Internet
• most companies spend less than 3 percent of their
  sales on advertising
• the largest budgets for advertising are in the
  consumer products field... why?

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Developing a Campaign

• must be consistent with the advertisers
  corporate and promotional strategies
• before designing a campaign, an advertiser must
• know the target audience
• establish overall promotional goals
• set the total promotional budget
• determine the overall promotional theme

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Steps in Campaign Development

• 5 steps
• define the objectives of the campaign
• establish a budget for the advertising
• create the advertising message
• select the media to be used
• evaluate the effectiveness of the advertising

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Advertising Objectives

• the firms advertising can have several goals
• support personal selling
• improve dealer relations
• introduce a new product or service
• expand the use of a product
• counteract substitution
• generally establish an image

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Creating the Message

• get the attention of the target audience
• influence the audience in the desired way
• communicate an appeal
• Execution transforming the appeal into words and
  visuals

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Selecting the Media

• what type of media, which category, and which
  specific vehicles
• factors in media choice
• objectives of the ad and the campaign
• audience to be reached
• requirements of the message
• time and location of the buying decision
• cost of placing the advertising in media

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Evaluating the Major Media

• newspapers
• television
• magazines
• direct mail
• radio

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The Changing Nature of Media

• media are becoming less mass, more targeted
• specialty channels
• direct-to-home TV
• lots of new out-of-home media
• Yellow Pages and other directories on CD-ROM
• place-based media where people shop and live
• advertising on the Web works

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Evaluating Advertising

• ads may have several objectives, work over
  extended time periods, and results are usually
  not observable
• direct measurement of effectiveness is possible
  where ads stimulate immediate sales
• indirect measures are more often used to get at
  recognition of the ad, aided and unaided recall
  of the advertiser and of the message