Advertising Outline

      What is Advertising What Advertising Do Effective Advertising Major Advertising Decisions Steps in Developing Effective Communication Advertising Tools

What is Advertising?

Advertising is Any Paid Form of Nonpersonal Presentation and Promotion of Ideas, Goods, or Services by an Identified Sponsor.

What Advertising Can Do

Remind customers and prospects about the benefits of your product or service Establish and maintain your distinct identity Enhance your reputation Encourage existing customers to buy more of what you sell Attract new customers Slowly build sales to boost your bottom line Promote your business to customers, investors and others

What Advertising Can t Do

Create an instant customer base Cause an immediate sharp increase in sales Solve cash flow or profit problems Substitute for poor or indifferent customer service Sell useless or unwanted products or services

Effective Advertising
AIDA Right Image Successful Themes

AIDA
Attention Interest Desire Action

Right Image
1234567White Space Typeface Illustration Price Quality of Paper Color Size/Shape/Fold

Successful Themes
1- Solve a Problem 2- Here is the News 3- Use Humor 4- Prove that it Work

Major Advertising Decisions

Message Decisions
Message Strategy Message Execution

Objectives Setting
Communication objectives Sales Objectives

Setting the Budget

Campaign Evaluation
Communication Impact Sales Impact

Media Decisions
Reach, Frequency, Impact Major Media Types Specific Media Vehicles Media Timing

Setting Advertising Objectives

Informative Advertising
Inform Consumers or Build Primary Demand

Persuasive Advertising
Build Selective Demand

Reminder Advertising
Keeps Consumers Thinking About a Product

Setting the Advertising Budget

Company specific factors to be considered when setting the advertising budget:
     Stage in the product life cycle, Competition and clutter, Market share, Advertising frequency, Product differentiation.

Setting the Advertising Budget

General factors to be considered when setting the advertising budget:
     Strategic versus tactical budgets, Overall promotional budget, Consistency, Opportunities to stretch the budget, The final budget.

Message Decisions
Message Generation Message Evaluation & Selection

Message Execution

Media Decisions
Step 1. Decide on Reach, Frequency, and Impact Step 2. Choosing Among Major Media Types
Media Habits of Target Consumers, Nature of the Product, Types of Message, Cost

Step 3. Selecting Specific Media Vehicles

Specific Media Within a Given Type, i.e. Magazines. Must Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality

Step 4. Deciding on Media Timing

Scheduling of Advertising Over the Course of a Year Pattern of Ads: Continuity or Pulsing

Campaign Evaluation

Measuring the Communication Effect

Measuring the Sales Effect

Steps in Developing Effective Communication

Step 1. Identifying the Target Audience

Step 2. Determining the Communication Objectives Buyer Readiness Stages

Awareness Knowledge Liking Preference Conviction Purchase

Steps in Developing Effective Communication

Step 3. Designing a Message

Message Content
Rational Appeals Emotional Appeals Moral Appeals

Message Structure
Draw Conclusions Argument Type Argument Order

Message Format
Headline, Illustration, Copy, & Color Body Language

Steps in Developing Effective Communication

Step 4. Select the Communication Channels
Personal Communication Channels Face to Face, Telephone, Presentation Non Personal Communication Channels Print, Broadcast and Display Media

Step 5. Selecting the Message Source

Step 6. Measure the Communication s Results

Advertising Tools
Newspaper Radio Television Direct Mail Outdoor Internet

Newspaper
Advantages
Broad mkt coverage Immediate Short lead time Flexible ad size Visibility of product Color Use of coupons People believe what they read!

Disadvantages
Inconsistent reproduction One day life span Limited demographics Lost in the Crowd Lack of movement & sound

Radio
Advantages
Demographic selection High frequency Immediate Sound reinforcement Quick flexibility

Disadvantages
Restrictive message length Need for repetition Short recall factor Cluttered placement

Television
Advantages Use of sight, sound, motion, & color Mass coverage Immediate Demographic selection

Disadvantages Short exposure Expensive production Expensive to air Cluttered placement Viewing time drops as income increases

Direct Mail
Advantages

Demographic selection Unlimited message length Consistent reproduction Direct response by order or coupon

Direct Mail
Disadvantages

Expensive Difficult to obtain pure mailing lists Long lead time Negative reaction to junk mail

Outdoor

Advantages
Reaches large audience LongLong-term exposure Color & graphics Forms include billboards, posters, illuminated signs, moving vehicle signs, bench ads

Disadvantages
Limited message length Expensive to produce & place Difficult to obtain the best locations Legal restrictions for use

Reaching Consumers
How best to reach consumers
 Newspaper Insert  In-Store Display In In-Store Promotion In TV ad/promotion  In-Store Feature AD In Radio Advertising  Other 30.5% 22.1% 15.8% 2.8% 2.7% 0.2% 19.4%