PRIN OF ADVERTISING
PRIN OF ADVERTISING ADV 3008
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This 108 page Class Notes was uploaded by Juston Wiza on Thursday September 17, 2015. The Class Notes belongs to ADV 3008 at Florida State University taught by Barry Solomon in Summer 2015. Since its upload, it has received 35 views. For similar materials see Principles of Advertising in Advertising at Florida State University.
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Date Created: 09/17/15
ADV3008 Notes 92711 1008 AM Day 1 Intro and Syllabus Oct 26 birthday red forest cake Day 2 The Advertising World Marketing Concept A business philosophy where the organization determines the needs of the target market and satisfies those needs at a profit Marketing Mix a blend of things that make a whole Product bundle of attributes a consumer receives in a transaction 0 what you get can be intangible service Price What the consumer must give up in order to receive the product cash credit financing Placement all issues related to the system of distribution 0 from point of manufacture to point of final sale Promotion closer to advertising 0 All of the methods used to inform and persuade the target market about products that are available at some price and in some place Relationship between the 4 Ps Decision Making regarding product price and place come before promotion 0 Product Price and Place precede Promotion Resource allocation 0 Supply and Demand 0 Need of balance between product developmenthow much product we can productsupply and promotion balance the supply with the demand a otherwise consumers get upset n EX KFC grilled chicken big line ran out of chicken most people mad how can kfc run out of chicken 0 created a demand that exceeded supply 0 Made national news a Promotion that creates demand greater than supply is wasted Promotions Mix A model of communication alternatives 0 O O O O 0 Advertising shows the different ways a company can communicate with their markets Paid greater control but lack of credibility Free more credibility less control Media Personal Where they intersect create different results Companies use different strategies Paid Free Media ADV PR Personal Sales Word of Mouth EX TV Ad create an ad for Chevrolet Corvette O O O 0 Words hot fast sleek teacher ads deadly What color should we use red Hard top or conv conv auto or manual manual we have conv red 6 sp corvette what type of person man old sexy hot who s in passenger seat blond younger girl quotugly people cant drive corvettes in the ad and no gingers allowed Where should it be driven Malibu pacific coast highway What are we missing Music rock classic rock now cut to car crash Truth Whole truth and nothing but the truth but a commercial doesn t want you to see the whole truth Advertisers wont tell you everything tell you the truth nothing but the truth but not the whole truth Control Message what we want to say and how Where message is seen heard we can control the delivery of the message When we control the timing of the message Additionally on a per person basis advertising is the most inexpensive way to reach a mass market 0 no other form of communication can match it But it has drawbacks 0 To be affective much reach a lot of people So total cost is tremendously expensive bc consumer knows you are trying to sell something advertisers don t seem very credible n Advertisers suffer from low credibility 0 Immediate response or feedback is not presence Coupons give barometer on how well ads are doing different ways of tracking but not immediate response Public Relations not paying for time and space 0 news coverage of event have to paycreate event but not paying for the ad Publicity form of PR that deals with media time and space that a company doesn t pay for a 910 x its good u people say quoteven bad press can be goodquot but sometimes so neg not good 0 BP oil spill n Builds brand awareness Personal Selling company uses paid sales person in direct contact with the customer Lots of control personal but credibility issues due to trying to sell Variety of control to implement strategy Word of Mouth Most risk best reward riskreward People you respect was friends and family coworkers 0 Online now this is expanding yelp online reviews Problem if you have a product spending a lot on advertising even great ad but effectiveness can be totally diminished by negative word of mouth Reward not much ads but still do well with positive word of mouth Looking at the promotion mix advertising is an element Looking at Marketing Mix Promotion is an element Advertising any PAID NONPERSONAL communication from an identified sponsor that INFORMS PERSUADES andor REMINDS not free not face to face Decision Seguence model Process commonly used in advertising to guide the creative process towards effective strategy and execution o Situation Analysis fact finding stage Research based analysis taking into account internal and external factors that affect the organization a Consumer competition macro env social culture a Once we understand the factsgt 0 Objectives and Positioning Positioning the way the consumer perceives the brand 0 Brand a product is all the attributes a consumer receives A brand is all the intangibles attached to the product a Product OJ Brand Min Maid a Product Shoe Brand Nike brand is whole identity 0 who endorses the swoosh the companies history Brand Equity the difference in perceived value between the product and the brand a LeBron James doesn t make Nike a better shoe n why we are willing to pay more for different brand a the value of the brand equity is the difference in price between suppliers for basically the same product a why do people pay more trust familiarity people pay more for rolex nike you name it Strategies How to go about implementing objectives Budget Implement Evaluation did the campaign work 0 O O 0 Decision Sequence Model we approach decisions different ways based on the importance of the product Levels of Involvement three general divisions No Involvement consumer has no interest in the product category all the competing brands in one product group and will make no purchase 0 cigarettes snowmobiles in FL 0 don t advertise to these people Low Involvement consumers will purchase but very little brand evaluation before purchase 0 EX Milk expiration date is usually most important variable not which cow 0 EX Paper towels price is 0 many products we buy on a daily basis High Involvement 0 Consumer engages in careful brand evaluation prior to purchase 0 Generally associated with higher priced items BUT reading food label is high involvement and cheap product also medicine 0 research warranty reputation make comparisons o EX computer Car Jeans for Women avg try on 14 pair before buying MISSING NOTES TUESDAY ADV3008 0906201 1 Hierarchy of Effects The stages ones goes to from total unawareness never heard of that product before to brand loyalty this is the only brand of product I ll buy ill only buy tide detergent Doesn t happen overnight go through different stages to reach that Two different hierarchy 1 HIGH INVOLVEMENT PRODUCT 1St stage we go through is AWARENESS Ex Mazda 3 know its Japanese car and 4 door that s all I know but would go out amp buy a car on it just because we heard of it NO 2nd stage ATTITUDE Developing opinions and feelings towards a particular brand of product could be positive negative or neutral Positive attitude towards that brand stylish 35mpg good mileage great dependability great warranty resale value good Negative I ve got a friend who has one amp its always in the shop yeah might get good gas mileage but small tank so always at the gas station kind of boxy small engine can t go as fast Neutral yeah its got good gas mileage and like dependability but don t like the style of it Now if have neg attitude towards the product are you going to buy it NO cause there are others you will be attracted to more If you have neutral feelings would you buy it NO Attitude has to be favorable POSITIVE CHARACTERISTIC OF HIGH INVOLVEMENT PRODUCT will make careful brand evaluation 3rd stage BEHAVIOR Just because have a favorable attitude towards a prod Doesn t mean you are going to buy it 2 LOW INVOLVEMENT PRODUCT Ex Popcorn plan on Watching a movie netflix or a ball game going to watch Princess amp the Frog amp are going to eat Pop Secret Movie Theater Butterquot AWARENESS Have heard of pop secret products don t know whether going to like it or not but by purchasing it I engage in TRIAL BEHAVIOR By buying a low involvement product I m going to take a risk to try it because don t care much about different brands so develop attitude towards it AFTER I try it amp that attitude could be positive neutral or negative amp after purchase the product ATTITUDE Develop attitude after trying it because it is not a high risk Not like a car that when buy it you are stuck with it REPEAT BEHAVIOR If like the popcorn will buy again Mostly DON T NEED TO GO THROUGH ALL FOUR STAGES Schramm s One Way Communication NEED TO KNOW NAME FOR EXAM 5 Stages Source Encodes Signal Decodes Destination Related to Advertising Advertiser Source puts together encodes ad signal which is understood decodes by the target market destination Problems that can occur Ex Going to a restaurant amp on diet wants to go to a restaurant that has low fat food options Restaurants that would think about Crispers Subway etc But would you think of taco bell as one of these restaurants you would go to lose weight NO Problem is advertisers think people would go to taco bell amp order from fresco menu low fat options Advertisers perceive the problem wrong Advertisement campaign lasted 2 weeks because would never think of Taco Bell as a low fat option Taco Bell will never be perceived as that because they have developed their reputation Source sends out signal incorrectly source understands problem but does not communicate the intended message Ex Burger King Ad Using the King in Ads was a problem because they focused more on the King figure rather than the quality of the food that would drive people in Burger King changed advertising company new commercial focuses more on the products Old advertising company new what they wanted to say but didn t say it right Receiver doesn t understand the message The advertiser says what they want to say but we think its stupid or we just don t understand it Don t know what advertising is trying to say Ex Ad of Gatorade G commercial with all athletes but you re like what Doesn t make sense don t know what G is New ad The step system for Gatorade if you want a revolution the only solution evolve Much more focused on brand tied to what Gatorade is Sometimes everything works out fine source puts together message that receiver understands BUT the destination forgets it or ignores it Usually not a creative issue just a function of lack of not enough to spend on campaign every advertiser isn t Gatorade or Burger King that can afford nation wide campaigning advertising If don t see ad enough forget them and if ad does not reach audience enough times not going to be impact Final problem can happen if not spending enough amp not sending it to the right media Advertising won t be effective Agency Organization Finance Payroll profitloss statements forecasting profit gain or loss RESEARCH 1St people involved with the project amp last people involved 1St people because have to take facts and find out what is going on the market what will work what concept will be appealing testing ideas Last people involved because they evaluate advertising at the end did campaign work Did it flop RESEARCH ANALYSIS ACCOUNT PLANNER People who take the research specifically the consumer based research and develop consumer insight and translate that research into a form that the creative department can use take research and simplify that to be sent to the creative department MEDIA DEPARTMENT Determining WHERE advertising will be effective gt Most efficient use for the money MEDIA PLANNER Overall allocation of the budget Ex Have 1 million budget they ll determine what of that budget should go to each type of media 399k to TV 200k to magazines MEDIA BUYERS Actually implement the media planning Ex Ok advertise on TV they decide what channels what time ACCOUNT SERVICE Contact with the advertising agency to make sure the work being done satisfies the agency and that agency is on the goal with the company Account service is the source between the client and the adv agency Work in conjunction with the client in developing strategy and communicate that to the rest of the agency People in account management NEED to know how every department works because what they are responsible for is making sure everything in that account is working Ex Quarterback on the football team doesn t do anything but needs to know what the linebacker does ACCOUNT SUPERVISOR ACCOUNT EXECUTIVE CREATIVE DEPARTMENT Hardest area for an agency to exceed Generally people are either extremely creative visually or verbally COPYWRITER People who come up with words in advertising ARTISTS Do the visuals graphic design Most agencies both work in partnership portfolios put together by both Small agencies Outsource production work Larger advertising companies have its own production team If ad agency has 30 or 40 clients all those different clients have stuff going on daily lives and what TRAFFIC DEPARTMENT does Make sure everything runs smoothly each department is running nicely Larger the agency the more important the TRAFFIC DEPARTMENT is Types of Agencies Full Service Complete advertising services Can see full service agencies get involved in other areas such as PR Social Media becoming more amp more complete communication companies But every advertiser doesn t need all of these services some advertisers want less service for their needs Media Buying Service The vast majority of advertising dollars is media dollars About 90 of budget goes to running an Ad on TV the cost of putting on TV is biggest part of the budget Companies that specialize in buying media buy in BULK the more they buy in bulk the less the unit costs Can pass along those savings to advertisers Ex Costco don t go to Costco to buy 1 pack of frosted flakes you go to buy 20 so the unit price of 1 is less but you buy a lot more BIG agencies dropped media departments and simply buy from Media Buying Companies Creative Boutique Small specialized agency Very small unique Usually focuses on 1 area of creative work May do nothing but graphic design may do nothing but radio jungles design websites social media Sometimes don t even produce the ads sometimes just develop concept not actual advertising InHouse Agency Real ad agency but operates within a corporation its only client is the company doesn t do advertising for any body else than ex Home Depot The reason an inhouse agency can be effective is because get total control of what s going on don t have to share anyone with another client Most likely to see inhouse agencies with retail accounts Reason retail advertising requires a lot of short term work Retail adv all about new products do need short term work and fast So by inhouse agency faster turn over Situation Analysis A research based analysis of all of the internal and external factors that affect the organization EX Pizza Get pizza delivered why is it that when have pizza amp get pizza cuter why can t all pieces be the same size There s always that one small slice and if there is that one small tiny slice on the side there s a humongous slice Is the small size any different than the large size No the same toping The same taste A company in the big slice very profitable but company in the small size does that mean they can t be profitable Not at all could still make The only area where there is only 1 winner is POLITICS but in business world can have multiple winners because there are multiple segments in the market Have to decide with segment will be appealing to your product Consumer Segmentation Overall purpose Reasons for Consumer Segmentation Generally wasteful and inefficient to market to everyone with the same product Ex Sprint advertising you re breaking up with me just got your text just got your email so sprint offers plan with all those things unlimited but only want to talk so why should I pay 70 when all I want is to talk but unlimited ALL isn t only plan they offer if they only offered the unlimited package they would lose a lot of customers because different people segments want different products Everyone doesn t want the same thing Can t devel0p separate products for each consumer Ex Coke products Diet Coke is too bitter Coke Zero is too sweet wrote a letter to CocaCola to see if they could make a couple of cases just for me with both blended but they said NO Why Because you as a single c0nsumer are not Worth their time or their money it s not profitable Ex Burger King have it y0ur way but Can t customi2e your own burger can t have a peanut butter burger because not large enough market More like have it your way as long as its our way so can have it your way with the ingredients they choose Segmentation didn t happen overnight Emergence of Segmentation Introduction of the marketing concept 1St Factor that lead to consumer segmentation Ex Henry Ford when making Model T what colors will your car be made Well they can get their car in whatever color they want as long as its black Cheapest paint cheaper to produce with time realized there was diversity of consumer needs 2nd Factor Higher Standard of Living Basic survival needs water shelter food Fact of the matter is for the vast majority of people in our society those needs are met you may not know where you are going to eat later on today but know are going to eat somewhere Once those survival needs are met live to fit in to society standards Ex All wearing uniform today s may not all be wearing the exact same thing but wearing jeans guys wearing cargo shorts got athletic shoes on or sandals got logo or printing on your shirt do things that selfindentify or include you in a group and society Do we need microwave ovens Don t need it to eat but if live a busy lifestyle you don t have time to bake a potato in oven 1 hr potato in microwave 7 mins This is not new this whole materialistic approach to life Do you need designer jeans Not to cover yourself but to fit in to the group you are in Yes Ex Marco Polo why did Marco Polo go to China MATERIAL THINGS Why did the queen fund Columbus trip For gold spices etc The only different back then 1 had the now have a huge middle class The needs haven t changed what has changed is the way consumers purchase 3rd Factor Increased competition Live in society where nto just one business or has exclusivity in a market Ex Casual Clothing market store that sells cargo cardigans white v necks think of GAP large piece of pizza But also OLD NAVY more value oriented always focus on the low prices large piece of pizza Banana Republic small piece of pizza MISSING NOTES TUESDAY THURSDAY SEPT 8 Situation Analysis Looking at the consumer o cant market to all so we use consumer segmentation 0 Consumer Segmentation Classifying consumers 0 Identify consumers Into potentially profitable groups Developing strategies 0 That will appeal to those groups Segmentation Variables Enduring variables three main 0 Variables that stick with the consumer at any point in time regardless of the product being purchased Like your age ex 20 years old buying coffee jeans etc Have certain level of income at this point in time n regardless of the product that is being purchased Useful for describing behaviors O 0 Demographics are the most popularly used enduring variables statistical study of population size Demographic segmentation most commonly used in advertising amp easy to obtain age gender race household income education level o EX Laundry detergent family size household size 0 Geographic segmentation variable 0 regional differences in consumption patterns and brand preference EX Breakfast in Chicago no grits a Not about age or income but about where you grow up Suntan products more sold in the south then in Buffalo NY geographic distinction 0 Brand Preferences Coke or Pepsi south likes coke more Beer types Psychographics 0 who you are if demo and geo are what you are 0 has to do with attitudes interest opinions lifestyle 0 type of music how you spend free time optimist fashionable 0 how do you spend your money saver spender Demographics and Geographics don t tell how you think 0 EXgt football game product to people who like sports 0 selling concert tickets to people who like music 0 selling fashion product to someone who likes fashion 0 Need to look at all three enduring variables Dynamic Variables specific to an individuals relationship with a product 0 different between coffee shoes cars etc Much more useful for developing message and positioning strategy 0 Brand positioning 0 creative ideas O 0 Heavy vs Light Users 0 EX McDonalds 8x wk 5 40wk412 1920 year 0 light user once a couple months 18 year both are users of the fast food restaurant but not thought of as equal 0 Heavy users are the key to successful advertising EX fishing two lakes limited bait n More fish not all bite a small pond but bite 8020 RULE 80 of sales come from 20 of the customers a don t have to reach a large number of users to generate a large revenue EX Beer women drink beer but you don t see much advertising for beer in women s magazines lifetime channel You do see it on sports programming towards men n Men drink beer more often and in larger quantity Advertisers are going where the 80 is O O n BK identified new type of user Super heavy user 1834 yo male that eats fast food 4x a week EX BK ad 1834 yo men in ad Dump a minivan Can be heavy user in fast food but not in laundry detergent a Specific to individual relationship to product Product Adoption 0 Early vs Late Adopters has to do with the point in time where a consumer tries a product for the first time a movie 12am showing preorder video game but early adopter in video game is not necessarily an early adopter in fashion or food club etc Early adopters are important because they generate word of mouth Critical for advertisers to reach early adopters 0 Late adopters Wait til it goes on sale till the lines goes down Not as important to advertisers Characteristics of early adopter o Younger 0 Higher educated o from Psychographic standpoint risk takers O End Use 0 Different people buy products for different final uses EX computer n For school work notes social media etc a Others use same hardware for small business person payroll inventory order supplies etc a Exact same product with totally different end use EX Cheerios a Kids tasty cereal n Adults lower cholesterol Not uncommon for a product to have different target markets because there are different end users Brand Loval vs Brand Switchers 0 Brand loyal consumers most desired consumers for an advertisers bc you will stick to that brand and exclude all others a Nike shoes But blindfolded might not be able to tell Might be brand loyal in athletic footwear but not in pizza n Papa john s customers are very brand loyal 0 Brand Switchers Often price sensitive n Coupons sales However may switc in one category but be loyal in others Benefit Segmentation o Attribute what a product has size of engine in car Mac OS 0 Benefit what the product does for you ability to pass car ease of use People use same product for different benefits EX Pizza n Attributes cheese sauce delivery price a Benefit Great taste value satisfying hunger convenience social food bringing people together ex pizza hut commercial shows many different benefits a doesn t work with meatloaf cant hand it to a friend Need Strategies to appeal to consumers 0 message Strategies Creative part a idea to be communicated a broad idea Pizza Hut a way to bring people together 0 Media Strategies Delivery system a how do we get the message to the target audience TV web print etc Have to develop both message and media strategies Four Strategies 0 Undifferentiated Strategy advertising one general product to an entire market place a taking a pizza and eating it as one big slice not divided at all no segmentation Message and Media both very broad a To appeal to as many people as possible a o Partially Differentiated Company makes a lot of products designed to appeal to specific consumer segments in the market place a Several products several distinct market segments Some will reach larger or smaller groups 0 In same category but not trying to appeal to the entire market place Each of these products utilizes a different creative and or media strategy 0 Ex Dolce and Gabana eyewear different products for different target markets a men s products are different but still targeting people interested in high fashion amp have money o Wholly Differentiated Strategy Entire user population Variety of product and message strategies Specific media and message strategies a different products some large some small mid sized but cover entire product category covering every segment of the market Ex Coca Cola diet water specialty foreign drinks minuet maid if you are thirsty anywhere in the world coke has a product for you not adult not dairy ads will be different for each type of product though 0 EX Kellogg also wholly differentiated company 0 O o Concentrated One product for one consumer segment a Very specific message and media Special shoes Gibson guitar SPECIFIC STRATEGIES Takes aim at a specific group of people Rifle Strategy 0 Rifle Message specific statements 0 Rifle Media Cable TV direct mail special interest magazines Shotgun Strategy 0 Broad general statements 0 Shotgun Message broad o Shotgun Media TV general interest magazines outdoor advertising EX Target what can you get there Anything 0 Shotgun approach dance commercial filling room advertising club guest speakers workshops couple trips Nov NY city great networking pizza Monday 7pm HCB 103 Product Life Cycle PLC The changes a product goes through from its introduction in the marketplace until it is pulled off the market Stage product is in directly affects the type of advertising and strategies 4 stages 0 0 time 0 sales at conception then 0 Introduction 0 Growth rapid increase in sales 0 Maturity stabilize o Decline PLC can be short or long Coke has been in maturity stage for a long time and maybe our whole lifetime Not all products go through all stages 0 some don t get past introduction ex KIN Microsoft entry to smartphone market a sold less than 5000 units TUESDAY SEPTEMBER 13 2011 gtgtgtgt Product Life Cycle 4 stages Introduction 0 low sales o losing money 0 Price New product category u not much competition price may be relatively high 0 Advertising need to create awareness establish positioning a how do people think about or perceive the product Sales a most promotional dollars spent with retailers Growth Rapid increase in sales rapid increase in competition 0 price drops Advertising n Stimulates Selective Demand Demand for specific brand 0 Since more competitors Promotions n Samples n Coupons EX Kindle ad on beach bright sunlight books in 60 seconds a started at 399 now 129 and more powerful cost of production comes down as selling more competing with full function tablets like ipad growth will begin to level off Maturity o Stabilize 0 competition becomes intense shoes motor oil also not alot of perceived difference between brands a price becomes primary from of competition especially in low involvement products Advertising n Maintain Position n Forcus on Intangible Benefits since consumers think the products do mostly the same thing Sales Promotions a Price loss of consumer loyalty in this stage Discounts coupons 0 high number of brand switchers in maturity phase EX Pickup truck type of person driving manly 0 construction worker o muscles 0 black coffee drinking what if has a dog a Black lab AD chevy silverado Image for car nfl player cute dog and big dog choice Price incentive at end 0 Decline a full stage doesn t happen overnight a pull off market place but still have obligations so cant say no more 0 Price Steep price reductions a To get rid of remaining inventory 0 Advertising Low support but not cut off 0 Promotions Low Support n EX GM as part of bankruptcy got rid of Pontiac Saturn but can still get them 0 still have contracts with local dealers til 2012 or later keeping buick cad n EX Ford has mercury don t fit between Lincoln and ford discontinuing so they are phasing it out Issues Concerning the Company Companies operate in different ways 0 Some expansionary 0 some looking for quick some long term Looking at Goals and Philosophy indicates how advertising should work Financial Resources 0 advertising budgets determined by financial condition of the company 0 Car industry Ford who didnt take fed money has more control gm and Chrysler did and now restricted Production Capabilities 0 Advertising that creates demand greater than your ability to supply then that advertising is wasted Advertising needs to be balanced with production capabilities Distribution 0 Regional national No point in advertising where your product isn t available Product Portfolio 0 Most companies make multiple products Products should compliment and not compete a Product cannibalization some sales erosion is ok but should not be too much EX Anheiser bush products cant establish a loyal base since competing with each other a Michultra a select 55 both light beers 0 super light beers but cant carve out a distinct enough segment between the two Gap vs Old Navy 0 both selling casual clothes 0 many people trade down to go to old navy gap upgraded merchandise old navy went family oriented o trying to create more of a distinction between the two companies 0 EX Gillette and Braun electric amp manual shaving compliment each other EX Mcdonalds ad snack not burger not a meal 0 carves out a niche for a subset of their market Macro Issues Large scale issues that you have no control over Economy 0 Consumer confidence high unemployment rate interest rates stock market housing values take my and go home 0 O O O O O 0 Can offer coupons to stimulate sales Allstate ad about recession Legal Issues 0 o knowing laws and regulations that affect your product Size of Market 0 how large is target market advertising should be in line 0 need to know growth rates baby boomers retiring a bigger advertising budgets on retirement focused products and planning EX Ikea ad girl grows up Ikea there through all lifes phases Suppliers and Natural resources 0 tsunami nuclear disaster Japan shortage of Japanese cars in US a Parts were not available a Toyota Nissan Honda sale plummeted a American manufacturers sales went up Societal Changes 0 Role of women 0 new gay and lesbian market big purchase of a travel a high fashion a top shelf liquor a high income no children to support 0 EX Orbits targeted to gays Gayorbitzcom u If market is there then advertising will be there Green market 0 New market has money Seasonality 0 Seasonal purchasing patterns When we buy certain types of products 0 If seasonal advertisers are more effective where strategy is built around exising patterns 0 EX Target ad back to school runs in july august wouldn t run off season In Situational Analysis From Consumers to Macro issues the data comes from secondary research Apple GM etc can spend a lot of money on all aspects of the decision sequence IF small budget best money spent during the situation analysis 0 keeps advertising moving in the right direction 0 if you know where you are going at least you can get started 0 Secondary Research Research that s been gathered for some other purpose which is useful to the company 0 US Census data Counts people available to us but not collected for us Sales results Online Surveys Reports Academic Journals 0 O O O O EX Toyota vs Honda car sales can look at registrations and see what is selling relatively inexpensive rapid and timely and gives great yield of comparative data reliable since all cars have to be registered 0 Disadvantages tells us what the sales are but not why Dated Not unique data that everyone else couldnt get u doesn t give competitive advantage a widely disseminated Primary Research Research customized by the company to accomplish specific goals 0 Areas of Usefulness Hierarchy of Effects n Awareness n Attitude n Behavior 0 Consumer information sources where do people go to get info about autos word or mouth 0 Classifying consumers treat them alike or have market segmentation 0 Determining appropriate message strategy creative part of advertising is ad strategy resonating to the target market What needs to be done Objectives and Positioning Setting Objectives and Establishing Positioning Purposes of Objectives 0 What the company wants to achieve Comes from situational analysis 0 A goal to measure accomplishment 0 Provides strategic direction 0 Goalwhat Strategy How DAGMAR Defining Advertising Goals for Measured Advertising Results Elements of an Advertising Objective 4 Elements Task 0 what is the advertising designed to do Audience 0 target the advertising is designed to reach Degree 0 amount of change to achieve within the target Time 0 Length of the campaign EX Increase the awareness of Campbell soup to adults 2554 yo by 10 by year end 2012 o If one element is missing you don t have a DAGMAR Benefits of Specific Advertising Goals People do better work when they have a clear goal Keeps advertising on target Provides a common goal Specificity promotes measurement THURSDAY SEPT 15 2011 Positioning Deals with perception of the brand Relating to competition through a unique AND Meaningful benefit EX look at car competitors Nissan sentra ours find out ours is 164 wider easier to open than any other car 0 but is that meaningful no also has driver and side airbags o is it meaningful yes but unique no 0 must be both Looking at Brand positions Nike the company not a particular shoe or hat or shirt 0 What s the first thought Swoosh do it u what does that mean to you n no regrets do everything u be active a reliable trusted brand a go for it Nike ad Nike sells an attitude Think of a car does it have a personality No its just metal rubber leather etc its just a thing what gives it the personality is the advertising Brand Positioning Consumer Perception perception is reality in advertising If a consumer does not perceive that a brand delivers a benefit then that brand does not deliver that benefit EX We are going out for lunch for a salad where to go Panera Tropical Smoothie Salad Creations These places make sense did anyone think of McDonalds 0 they run ads for premium salads appealing to the grown up in you but if the consumer does not perceive mcdonalds has health foods then they don t deliver that benefit to their customer Positioning That Leads to Strategies Attribute iphone ad if you don t have an iphone then you cant go to the app store or pay for your coffee etc Price to Value doenst mean you are the least expensive but refers to wt the consumer gets for their money 0 Mercedes expensive but to the buyer worth it for quality safety status etc but value for the money 0 Kia not expensive but for those who buy it it s a good value for that consumer s money 0 EX Airline ad about the extra bag charge but it s a cab funny take on airline rules jetblue ad By use or application Porsche just luxury or sports car they say turn your Porsche into an everyday car new ad campaign snowmobile pickup truck getaway car school bus Product User pet ad petco says people who love their pet this much don t shop in a supermarket o a different segment of the market Product category not a particular brand but a type of product 0 its important that your brand is in the evoke set or consideration set like thinking of a salad mc donalds isn t what you consider your brand must be in the consideration set or it will not be bought EX Taco bell had large share of small market burger biggest market so they wanted a piece of the burger market so they could have growth they would always be big fish small pond in taco market a came up with think outside the bun and an additional meal fourth meal a EX Steak dinner triple steak burrito as choice over steak night think away from traditional beef meals or hamburgers n EX Chick Fil A cow campaign represents burgers eat more chicken Competitor look at chick fil a or taco bell they don t mention competitors name BUT when you position by competitor you DO use the competitor s name 0 this ads credibility to the brand in terms of positioning 0 EX Talk about compact cars I mention Honda civic what can you tell me lasts long time good gas milege safe 9 what can you tell me about a Chevrolet cuise n nothing a Their ad compares it to the civic so after the ad if the cruise is like a civic but better if thinking about a civic maybe I should try out the cruise raises their status awareness and presence in the marketplace n EX how often does Mercedes compare themselves to another Never Positioning comes out of Objectives from the Situational Analysis Messa e Strateqv for the next month also called Creative Strateqv P L of quot Strateqv Message or series of messages 0 must be informative and persuasive Interesting Presentation Relevant issues Relevant audience EX Allstate campaign Mayhem 3 commercials Exec spill coffee anti 15 min car insurance Blind spot if named your own in trouble ref being chased out of town cut rate insurance quotShop less get morequot 0 O O O losing market share to cheaper insurance they are saying may be cheaper but not the same coverage a Three ads all focus on relevant issues entertaining got across info basic message mayhem happens be sure youre protected with Allstate o EX Bud Light 3 commercials Here we go sporting activities Girls book club with bud light dude sits in airplane crash found radio found beverage cart full of bud light here we go Basic message have a good time not talking about whats in the product groups of people since beer is associated with social settings 0 Different campaign but have a strategy behind them 0 O Creative Brief 0 O O O 1 page document of consumer and brand insights that are uncovered during situation analysis leads to advertising strategy focuses on consumer and brand 4 points Insights About Target Market Insights About Brand Interaction why use or don t What the Target Will Know and Feel 0 Key Insight big idea Leqal constraints on advertising Most restraints are from FTC Act of 1914 gt this date on test Federal Trade Commission Established the PFC as an organization to police unfair methods of competition and unfair or deceptive practices in O O O commerce most laws regulating ads stem from FI39C however there are other nonftc regulating agencies a n n n n n a Food and Drug Administration Federal Communication Commission Dept of Energy Postal Service Alcohol amp Tobacco Tax Division of the Treasury Library of Congress Civil Aeronautics Board 0 Federal State amp Local agencies that control advertising 0 Elements of Deceptive Advertising 0 Must have all three elements 0 1 Actually causes deception o 2 Deceives a reasonable consumer biggest area of loopholes o 3 Leads to material injury financial loss Comparative Advertising 0 Elements of Judging if Deceptive Comparisons are factual Differences are significant EX hotdog 100 beef other types of meat but of the beef its 100 Ball park says best tasting in their test they cooked the dogs differently Comparative Advertising Comparisons are factual Differences are significant Endorsements Two qualifications must be met for someone to endorse 0 Must use the brands but not exclusively 0 Qualified to make expert judgments 0 What happens if your company engages in deceptive advertising Corrective Advertising 0 Requires you to correct a problem you created 0 Prospective not retrospective Not punishment Reasonable in relation to the violation 25centsdollar No infringement on First Amendment rights a while you are running corrective advertising can still run another campaign iDannon Activia 87 suffers from occasional proven regulate digestive system in two weeks FTC said didn t say how much have to have 3 yougurts a day for it to work ftc thought that was deceptive and required corrective advertising a but not going to do it on tv but on the product label Liable Parties 0 Liability falls to o Corporations they have the money and ads don t run without their approval 0 Advertising Agencies Could have falsified the research or left out info 0 Spokespersons If they make a claim that they know is false Not suing a celebrity for reading a script but could sue the CEO about false info about the company 0 Retailer Go buy a Black and Decker cordless drill at Target said it worked for 8 hours but only worked 6 hours on a charge Wouldn t sue Target unless they are advertising the product in ad a Depends on the involvement in advertising the retailer has Of course you can sue anyone but its how likely to collect 0 Competition is most likely to sue as they have the most to lose Special Audiences o 1 Fisher Price IXL tablet for toddlers 0 Children more susceptible to advertising because their cognitive development isn t aware that the advertising is programming show a bunch of food with cereal they have to say part of a complete breakfast since the oj and toast etc doesn t come with the cereal o Elderly often real estate and financial scams SelfRegulation Even though there are govt agencies to regulate advertisers and even industries would rather regulate themselves instead of having govt get involved 0 National Advertising Division of the Better Business Bureau NAD no enforcement power have hearings EX Shick Hydro like a blast of hydration to your face best shave for your skin 5 blades smooth your skin a not hydration but just a shaving gel NAD said stop or else 0 Shick said we disagree with the findings about the ad but we will consider it in future ad 0 What does work comes from the marketplace consumers competition Creative Appeals Creativity is the most important element of advertising Creativity Relating to constructing building or creating Seeing a problem and developing a unique and appropriate solution 0 Allstate showing what can happen if you trade down to cut rate insurance Combining existing elements into new forms 0 Cheerios not just for kids can be good for adults heart Generation of new ideas The Big Idea The single idea that separates your product form the competitions but recognizes and capitalizes on the consumers problems feelings and needs 0 Aflac duck supplemental insurance the big idea 0 Allstate personifying mayhemthe big idea 0 Apple mac vs pc campaign Big Idea can be character tag line slogan but it s the broad idea that takes into account the customers needs while separating from the competition How do we appeal Rational vs Emotional Messages or Appeals 0 Combination of both in every ad 0 scale 110 0 1 straight info 10 being straight feeling Mayhem 6 feel something but has info Most consumer advertising leans more to emotional side but always contains both elements Why do you want to focus more on emotion o EX Did you go to sleep dreaming of tuna o Bumble Bee Starfish Chicken of the sea most the same 0 Do you eat it plain Most not so once add mayo and egg cant really tell at a restaurant do you specify you prefer bumble bee Why does starkist sell the most then They established an emotional connection a When there is nothing important to say about a product emotion becomes even more important When added interest is needed borrowed interest is when you brand has no inherent interest so interest is borrowed from some other arena a Music charactermascot humor celebrity etc Mr Clean Morten salt girl count chocula pillsbery dough boy Gordons fisherman vlassic stork mr peanut o 41 of public says they will buy a brand if they have a favorable opinion of the mascot If you like the green giant more likely to buy it than del monte a All borrowed interest 0 If you have to create a difference in a product category that is similar or in a subjective area borrowed interest can creat emotional attachment that can make a big difference in the campaign 0 Also character or mascot music etc can create continuity in the campaign 0 Product Appeals Focus on information more rational and tied to what the product does but still has emotion Product Feature 0 EX Verizon ad about tablets 0 Focus on attributes o Rational o Informatinve Favorable Product Price 0 Retailers 0 Sales 0 Specials 0 Day to day prices News about the product 0 New product 0 Change to existing products words like introducing new announcing Product Popularity 0 EX State Farm twice as much as geico and progressive combined 0 need a claim to superiority in some area to use this or don t use this Mac 1 notebook on college campus pizza ad a Used segment notebook on college campus Generic appeal 0 Primary demand not advertising a specific product but a product category Like the got milk campaign Cotton products Competitive Advantage Comparative Advertising 0 A brand is compared indirectly or directly with one or more competitors Directly Mention the brand by name comparison must be factual and significantly different Indirect doenst mention competitor by name kindle ad compares to ipad about glare and price but doesn t mention the competitor O 0 When should you use comparative Advertising Audience disagrees with the message Audience is exposed to opposing viewpoints The advertised brand is not the leader Benefit Compared is tangible The advertised brand has a smaller budget a needs to be aggressive take on competition head on O THURSDAY SEPTEMBER 22 2011 Product Appeals amp Consumer Appeals Consumer Appeals Benefits from using the product 0 More emotional but still conveying information Consumer Service Benefits that result from using the product EX Liberty Mutual Insurance Ad benefit is relief Consumer Savings Savings through use 0 Time 0 problem saved 0 EX BofA Online Banking cant get to the bank or waiting around can check balances set alerts pay bills solves a lot of problems Self Enhancement one of the most popular Makes user feel better about themselves 0 Stronger more status look good sexy confident not focused on what the product has but how it will make you feel EX Gillette benefit is not what it does but how it changes you 0 ADby looking good have more confidence after using Gillette you look feel and be you best the best a man can get Best a man can get has many meaning a Best product a best a get the girl 0 EX BMW ad brings out the kid in you joy having fun don t just make cars make joy 0 O O O O 0 Use of Fear Tries to communicate on how this product will help protect your life limb or property needs to be authentic though EX Aids ad girl stabbed herself with scissors o BUT too much fear causes message rejection Too little fear message isn t recognized 0 Not used as often because you have to get it perfect 0 EX Ad VW ad talking about 4 hour erection gets in accident Says vw safe in front end collisions o Seems real so it is more effective Subsidized product trial when you try something for the first time there is risk Subsidized product trial usually involves some incentive to consumer to alleviate risk 0 hamburger coupon 0 30k auto hundai offering price assurance guarantee on trade in subsidizing the purchase of the car by reducing on of the risks TEST NEXT THURSDAY 50 questions 0 4 o tions 0 one answer er uestion o quot 39 39 quot across lectures Tuesdav in class should have time for review 0 not condensed lectures gampa session Wednesday Group Study SessionStrozier The Finished Prod uct Execution Sytles execution type of ad or formats and techniques used 0 Product execution 0 Consumer execution Product Execution Slice of Life 0 looking at a part of someone s day situation encountered problem solved by product product saves the day and becomes the hero 0 O O O O EXiphone ad guy working forgot anniversary making reservation while on phone talk and surf at same time phone saved his day 0 EX guy in office has swords boss goes to land rover to tell guy he has to get rid of swords product hero Problem Solving 0 Product is hero Conflict that needs resolving Solved by using the product E EX Gillette Fusion Glide reduces tug and pull odd beginning animation problem solved with Demonstration 0 Product attributes or benefits shown These types of executions can be blended together 0 EX Toyota truck towing through ring of fire News 0 Advertisements meant to look like news New appeal or change about product 0 EX Backflip Motorola newscaster Introducing announcing new words used frequently Reason Why 0 Provides justification on why to buy product Could be to overcome higher price EX loreal multicolor O O O O B because youre worth it Talking Head one person 0 Close up of someone giving a sales pitch Closest it gets to bringing a salesperson into the home high involvement products or serious topics 0 difficult to look at a closeup for 30 seconds but usually one person and maybe different camera angles 0 EX talking about what exxon is doing with cutaways Testimonials Merits of the brand Experiences with the brand Types of Spokespeople o Experts bring credibility to ad employee owner researcher o EX Best Buy about blue shirts service provided 0 Ordinary Consumers basic products or mid level products ford uses everyday people EX Hundai ad cameras in the car hear what ordinary people say u just because they are ordinary they are not random had all races in the ad no teens no seniors only had target market people in the ad 0 Celebrities Mix of product appeals and consumer appeals a sometimes they don t even talk about the product Perceived as experts Celebrity visibility Borrowed interest a very little excitement or inherent interest in your product so bring in something interesting EX American athletes 5 amp 4 car racing walking billboards 3 LeBron James 2 Phil Mickelson 1 Tiger Woods n Advantages Increased awareness 0 brand has less awareness than celebrity o EX Wheaties we associate with athletes first Babe Ruth Brand identity Emotional Attachment 0 If we have attachment to the celebrity this will carry over to the brand EX Nike EX Pepsi ad world cup showing many intl world class players 0 O n Disadvantages Too many 0 EX Dish Network ad showing directtv celebrities Spread thin 0 some celebrities seem like they are just in it for the paycheck and then lose credibility o EX Tiger woods had over 10 contracts moral clauses are often in the contracts so they can be let go if they become an embarrasement to the advertisers Private lives are public Consumer Execution Most emotional Less focus on product Useful when interest created for product 0 Humor often selling point at end Attention getting Consumer distraction Very Subjective n depends on how its presented a doesn t always work EX ETRADE talking cynical baby a Bud Light dog sitting dogs throwing party for the sure sign of a good time a VW Kid beating VW pinata Simple concept but selling point at end 0 Animation Creation of fictitious characters that create brand interest very emotional way u Fictitious characters a Borrowed interest a Not just products for children cloud depression mr clean geico gecko 0 Sex Implicit or explicit n implied or graphic Gaining sexual attractiveness by using the product Attention getting awareness Improves recall Changes attitudes The closer the products proximity to sex the more effective the product will be a laundry detergent no u perfumecologne yes hard to describe a scent so dealing mostly with a Hair care can hair be sexy Yes Herbal Essences a multiple organic experience a Lingerie yes EX supersexycprcom n Condoms more explicit EX lifestyles Skyn 0 Music Helps the consumer remember brand name and promise a lyrics attached jingle n EX Subway 5 dollar foot longs Gets attention a helps us stay in the ad a music can grab and hold you throughout the story a EX Pepsi max why cant we be friends song coke guy drinking pepsi fight breaks out music and humor Maintains continuity a important through ads a consistent music Others would be slogan Differentiates the brand Adds value a especially if consumers don t differentiate much between brands music can help u EX 7th inning stretch quottake me out to the ball gamequot Nike play on song using sound effects a EX pampers ad with animals Forever Young END FOR TEST 1 EXAM REVIEW 39 BRING ID 39 PENCIL 39 ON TIME NO LATE ENTRY 39 COVERS UP TO TODAY 39 50 QUESTIONS 4 OPTION MULTIPLE CHOICE 39 FIRST THREE LECTURES TO FOCUS MORE ON o ADVERTISING WORLD 0 CONSUMER SEGMENTATION o SITUATIONAL ANALYSIS 92711 1008 AM ADV 300801 PRINCIPLES OF ADVERTISING FALL 2011 INSTRUCTOR Barry Solomon OFFICE 3117 University Center C OFFICE HOURS TTH 830915 or by appointment PHONE 6448756 EMail bsolomonfsuedu TEXT Take Note in Principles of Advertising Third Edition DATE TOPIC 830 COURSE INTRODUCTION 91 THE ADVERTISING WORLD 96 SITUATION ANALYSIS 98 SITUATION ANALYSIS 913 OBJECTIVES AND POSITIONING 915 INPUTS TO MESSAGE STRATEGY 920 CREA TIVE APPEALS 922 EXECUTION STYLES 927 REVIEW 929 TEST 104 COPYWRITING 106 PRINT PRODUCTION 1013 BROADCAST PRODUCTION 1018 RESEARCH TECHNIQUES 1020 MEDIA TERMS 1025 BROADCAST MEDIA 1027 PRINT MEDIAINTERNET 111 MEDIA PLANNING 113 SALES PROMOTION 118 REVIEW 1110 TEST 1115 SALES PROMOTION 1117 PUBLIC RELATIONS 1122 BUDGET STRA TEGIES 1124 NO CLASS 1129 RETAIL ADVERTISING 121 BUSINESS TO BUSINESS ADVERTISING 126 SERVICE ADVERTISING 128 CONCLUSION FINAL EXAM Monday December 12th from 730930 am 1 The student s grade in the course will be determined by the results of three examinations The tests will be multiple choice covering material from class lectures and required reading Each test s contribution to the student s final grade is as follows Test 135 Test 235 Test 330 Total 100 2 The grading scale is as follows A 90 or higher B 89008700 B 86008000 C 79007700 C D 6967 D 6660 F 59 or less 76007000 The following letter grades are assigned both to undergraduate and graduate credit students These grades reflect the quality and quantity of work submitted throughout the term according to the instructor s grading standards A grades represent work whose superior quality indicates a full mastery of the subject An A represents work of extraordinary distinction B and B grades represent work of good to very good quality but that does not merit special distinction C and C grades designate an adequate command of the course material These grades are satisfactory for undergraduate students but unsatisfactory for graduate students D and D grades indicate work that shows a deficiency in knowledge of the material They are unsatisfactory for undergraduate and graduate students F is a failing grade representing work that deserves no credit 3 Test 3 is the final exam and it will be given during the university designated time period during exam week The final is NOT cumulative 4 At each exam students will need to bring A 2 pencil B FSU ID Card Students without their FSU ID Card will NOT be permitted to take the exam 5 No student will be allowed to begin any exam more than 15 minutes after it begins There will be no exceptions 6 Make up tests will be given only in the case of A Documented Illness B Family Emergency C Death in the Immediate Family D University Sponsored Activity E Religious Holy Days F Jury Duty G Military Duty H Other Documented Crises 7 Attendance is required in accordance with University policy as stated in the Florida State University General Bulletin In part the policy states that the faculty member is expected to check attendance for all classes Any arrangement to make up work because of class absence is the responsibility of the student Students with no unexcused absences during the semester will be rewarded with a three percentage point bonus on their final semester grade Students will be allowed two unexcused absences during the semester After the second unexcused absence each subsequent absence will result in three percentage points being deducted from the student s final course grade Excused absences include A B C D E Religious Holy Days F Jury Duty Documented Illness Family Emergency Death in the Immediate Family University Sponsored Activity G Military Duty H Other Documented Crisis For any absence to be excused proper documentation explaining why the student was absent will be required Any student that enters the classroom more than 15 minutes after class has started will be counted as absent Additionally any student who leaves class before the end of class without notifying the instructor prior to the beginning of that class will be considered absent for that class period 8 It is the department s desire that all students fully participate in the curriculum of the department But your assistance is needed If you have a disability or condition that compromises your ability to complete the requirements of this course you must notify the instructor immediately All reasonable efforts will be made to accommodate your needs Further if you do not understand or accept the contents of the terms of this syllabus you must notify the instructor in writing by one week after receiving the syllabus Course Objectives Successful completion of the course will provide students with the understanding of the following Topic The Advertising World 1 The marketing concept and its implications for the marketing mix in general and for the promotions element in particular 2 The components of the promotions mix and the characteristics that distinguish these components from each other 3 Several basic models that constitute major analytical tools for the development of promotions strategy 4 The structure of the advertising industry the various divisions of an advertising agency and the types of advertising services that constitute the industry Topic Situation Analysis 1 The strategic arguments for market segmentation the factors leading to its emergence as a major issue in marketing and the two major aspects of a segmentation strategy 2 The enduring and dynamic variables that can be used to describe a market and the implications of each for promotion strategy 3 The common segmentation strategies employed by firms and the media and message strategies appropriate to each 4 The product life cycle concept the stages that compose it and the promotional strategies appropriate at each stage 5 The impact of various characteristics of the firm for the situation analysis 6 The implications of various environmental factors for the situation analysis 7 The types of data available for a firm s research needs and the types of research problems for which they are appropriate Topic Objectives and Positioning 1 The DAGMAR Defining Advertising Goals for Measured Advertising Results process and how it can be implemented in the decision sequence model 2 What is involved in product positioning and its relation to consumer perceptions 3 The strategic issues related to positioning Topic Inputs to Message Strategy 1 The components of message strategy 2 The inputs to message strategy 3 The current activities of the Federal Trade Commission 4 The current status of selfregulation Topic Creative Appeals 1 The role of the creative department of an advertising agency 2 The concept of a Big Idea and its role in creating advertising 3 The distinction between rational and emotional appeals and the criteria for determining the appropriate mix of these components of a message 4 The difference between productoriented and consumeroriented messages and various types of appeals in each category Topic Creative Executions 1 The relationship between broad classes of appeals and specific execution styles 2 The types of productoriented and consumeroriented executions Topic Copywriting 1 The components of the copy and layout of an advertisement 2 The tasks of a headline 3 The tasks of a tag line and the guidelines that can assist in producing tag lines that will accomplish these tasks 4 The guidelines for writing body copy and the components of body copy Topic Print Production 1 The contents and tasks of illustrations 2 Basic principles of design and how these can be used to develop effective illustrations 3 Types of layout and their uses in different advertising situations Topic Broadcast Production 1 The benefits and constraints of television as an advertising medium 2 The process of conceptualizing and writing a television commercial and the formats commonly used for such advertisements 3 The stages of television production 4 The guidelines that can assist in developing effective television commercials 5 The benefits and constraints of radio as an advertising medium 6 The formats commonly used for radio advertisements 7 The guidelines that can assist in developing effective radio commercials Topic Advertising Assessment Techniques 1 The different purposes and cost efficiency of directional and assessment research 2 The characteristics of various types of pretests and posttests 3 What dependent variables are measured in assessment research 4 The various methods used in assessment research Topic Media Terms 1 The basic concepts used in media planning Topic Broadcast Media 1 The characteristics of television as an advertising medium 2 The characteristics of cable television as an advertising medium 3 The characteristics of radio as an advertising medium Topic Print Outdoor and Direct Response Media 1The general categories of magazines and the characteristics of magazine advertising 2 The characteristics of newspaper advertising 3 The characteristics of outdoor advertising 4 The characteristics of direct response advertising Topic Media Planning 1 The various quantitative and qualitative issues that should be considered in making vehicle decisions 2 The implications of research on the relationship of repetition and learning for media scheduling 3 The various considerations that affect media scheduling and planning decisions Topic Promotions 1 What promotion is how it differs from advertising and the need to coordinate promotions and advertising 2 Behavioral learning theory shaping and their implications for promotions 3 The characteristics of various promotional tools 4 The role of pointofpurchase displays in the promotional strategy Topic Public Relations 1 The role of public relations in a firm s communications strategy and the connection between public relations and advertising 2 The reasons for using public relations 3 The role of corporate image advertising in a firm s communications strategy and its relationship to public relations and consumer product advertising 4 The objectives of corporate image advertising and the factors which contribute to failures to achieve these goals Topic Budget Strategies 1 Predetermined budgeting methods and their advantages and disadvantages 2 The strategic budgeting process and its advantages and disadvantages 3 Various plans for compensating advertising agencies Topic Retail Advertising 1 What retailing is the tasks of retail advertising and the key differences between retail and product advertising 2 Media and message issues that should be addressed when developing retail advertising strategies Topic BusinessToBusiness Advertising 1 The basic differences between consumer and industrial goods 2 The objectives of businesstobusiness advertising 3 The factors that contribute to the uniqueness of the industrial setting and how these affect the advertising strategy 4 The media message and promotional strategies that are appropriate in the industrial marketplace Topic Advertising For Services 1 What a service is 2 The unique characteristics of services and how these influence the advertising strategies for such offerings 3 The three types of private sector services 4 The unique aspects of public sector and nonprofit communications strategies Topic Concluding Issues 1 How perspectives on advertising as a managerial tool and as a social and economic force differ 2 The economic arguments against advertising and the validity of these arguments 3 The arguments against advertising based on consumer decision making and the validity of these arguments 4 The types of entrylevel positions available in advertising ADV3008 TEST 2 Notes 10411 936 AM Message Strategies Copy Writing Copy the set of words appear in ad any word in any ad not just written Elements of Copy Dialogue Voiceover Headline Tagline slogan Words in logo Body copy main words 0 Headline Most important copy component of a print ad Direct Headline a To the point Product name Product benefit or attribute a If reader never gets past the headline at least these point are conveyed Indirect Headlines a Better at getting people to read the rest of ad but if doesn t grab attention then NO benefits are delivered to the customer who doesn t continue to read Generally gives higher readership if hooks reader Provokes Curiosity o Puns 0 Word Play Creates interest of the ad a EX Your mom wasn t your dad s first canadian club a EX GForce beats wrinkle cream Hyundai ad Headline Tasks Headlines are designed to attact attention to the ad Segment Readers Lead readers into the rest of the copy Tagline Slogan Tagline Tasks Gain attention Provide a consistent link in the campaign Summarize brand position Effective Taglines Short Easy to remember Trigger thoughts about the brand exception like Nyquil EX Volvo benefits associated Safety 9 could save your life 0 for life two meanings gt lasts forever amp could save your life Two elements most associated with they reinforce with their tagline EX Gillette the best a man can get in print and broadcast serves as a link between every ad in the campaign Logo Visual design representing the company or product Serves as a cue to recall Stimulates recognition of the product and or company often has copy in logo Helps people recognize the comp EX Yoplait very thin font EX Electronics futuristic modern looking Components of Body Copy Main text of the ad Lead paragraph comes after heading 0 Tied to headline makes relevant 0 Transition from headline to body copy Interior paragraphs 0 Details of the ad Reasons to buy support for ad where to buy why to buy could be 110 paragraphs just depens on complexity of ad and product Final paragraph 0 Call to action buy now test drive today 0 Behavior 0 not like writing a paper could be all blended together might be phrases not complete sentences so all ads might not be so structured and formally broken into paragraph form but you will find these elements Writing Good Copy we can say there are tips to write a good ad but there is not a recipe consumer might not respond to the creative attempt some helpful guidelines but no guarantee Benefit to the reader 0 Solution to a problem 0 consumer point of view 0 Single purpose Write to one person 0 Psychographic profiles understanding target market is critical to make message meaningful Involve the reader 0 Present the unexpected o indirect headlines could help do this Credibility and believability 0 Especially important when dealing with facts figures or scientific generally advertising is not thought to be credible so you must build it ask your vet ask your dentist Writing Style 0 Relationship building advertising is all about creating a relationship between the product and the consumer o Conversational tone 0 Personal 0 O THURSDAY OCT 6 2011 Print Production Typing writing Layout Putting all the work together 0 The orderly arrangement of all the copy and artwork 0 Headlines and illustrations are the most likely elements of a print ad to stop the reader Grab their attention like a puzzle no two puzzles the same Historically heavy reliance on copy to more visual O O O O 0 Visual vs Verbal Shift from heavy reliance on copy to greater emphasis on visual Visual Broad Image Verbal Copy Main point n Important that both elements work together 0 Illustration Tasks Illustration Contents Attention for the headlines Conveys broad ideas Generate feeling and emotion be heart warming Tells a story in less then it takes to read a paragraph what is in it and how it can be shown 0 Many different types but some common 0 Product all alone if your product can stand alone and draw attention this can be effective Most cant n EX Tiffany ad just necklace and blue box a EX Diet Pepsi ad where label is falling off Product in use a Ex Detergent Creation of image and mood Charts tables graphs technically you want to communicate so graphs should be easy to understand Dramatization of product features talking about print ad not tv with animation n EX Mini cooper speed of car so fast making palm trees fall over on billboard ad hard to communicate speed in a print ad so dramatization helps a EX Gillette thin blades cant show actual photo so has dramatization n Above is not an exhaustive list but the more common a Design Key Elements 0 Balance equality of an ad s elements horizontally and vertically EX Chanel ad balanced in composition of elements 0 Focal Point single element that draws a reader into the ad Helps reader read the ad in the right pattern a Should only have one focal point per ad otherwise people start in different places then ad doesn t convey same way u Verbal headline text a Visual illustration or photo 0 Eye movement how the eye reads across the page The eye is attracted to the upper left of a page to the lower right a reads like book Z formation a Lots of layouts will be in this pattern due to its matching the eye s natural movement this country Tagline logo goes in lower right hand corner It s the signature like on a check n n n o Gaze Motion a purposeful attempt to break the eye s natural movement a can be done with lines or format structure Person in ad could be looking at headline or somewhere else 0 Like a car accident people look where othere s are loking Often done with trees staircases arms etc anything with lines or vectors can be used 0 Unity how well the pieces fit together The extent to which all the elements of an ad tie together Not just illustration and copy but also look feel content font etc Continuity in campaign a EX Coors Light Billboards unified campaign all of them looked the same on the background just different sayingtext Types of Layouts infinite number of ways to put layouts together three common print layouts Standard Picture Window 0 called picture because like looking out a window Illustration imageproduct Headline window sil Body Copy wall effective when lots of body copy needs to be with an illustration a copy headline doesn t go above pic bc pic is focal point and natural gaze goes down 2 pattern Poster Layout 0 dominated with bold visual little copy 0 designed to create a feeling or image 0 Popular where image and status are important auto liquor o EX Absolute vodka used for many years Copy Heavy o opposite of poster layout 0 dominated with extensive copy 0 little or no visual support Usually serious or high involvement ad a EX Diet ads full page text and few pics These are just a few common but combinations are infinite Broadcast production next week TUESDAY OCT 11 2011 Broadcast Production Script 0 Specifies the audio and video instructions 0 Allows for discussion of proposed commercial 0 Internal Use 0 Goes through many departments Legal to make sure ok Creative etc Storyboard o Developed from script 0 Blueprint for production Components n Pictures showing main screnes a Video Written descrption of what camera sees a Audio Written description of what is heard Presentation n Helps agency sell its creative ideas a Mounted n Roughly produced version a Audio rack o All this is just planning once the client signs off on the storyboard then production begins 0 Production Stages PreProduction 0 Casting call wardrobe studio or location set design lighting sound Production 0 50k1mil for 3060 sec very expensive 0 the actual filming of the storyboard o sometimes this is the quickest component of the production process Postproduction 0 Editing ADR sound effects narration 0 Creating Effective Television Commercials Visually captivation o More information is absorbed visualy than aurally KISS keep it sweet and simple keep it simple stupid Opening is critical 0 Otherwise the channel will change Entertainment as a means to sell 0 Entertainment value must be tied back to selling the product Doesn t help if people remember the commercial but not the message Believable 0 Try to build credibility in context 0 EX Ax not really going to happen that girls but is believable to get that your hair will look better in context Not literally what is shown in ad but some believable idea comes across Show desired behavior Ads may not fit all categories but the more they do the better the commercial Radio Production Not satellite or Pandora this is for Broadcast Radio Creating effective radio commercials 0 Grab attention early 0 Theater of the mind No visual component D But since more info is communicated visually than aurally we have to create visuals in your head Creation of visuals through audio elements 0 Music and jingles Most radio stations are already based on a specific music format so can tie in your commercial to the type of music listening to 0 Image transfer Transfer of images created in another medium visually over to radio Hearing the same sound on radio causes you to visualize what you have seen 0 KISS Focus on one basic concept 0 Ask for action Buy Look for it in you grocer s deli case come on down now 0 Repetition Since you can see it this can help Often critical in radio since no visual to reinforce Specific radio techniques and strategies 0 Humor 0 Unique Voices Borrowed interest 0 Sound effects sfx Helps in creating theater of the mind 0 Music THURSDAY OCTOBER 13 2011 ASSESSMENT RESEARCH DIRECTIONAL RESEARCH 0 During Market Analysis directs the creative team GUIDES THE CREATIVE EFFORT BY PROVIDING A CLEARER VIEW OF THE REALITIES FACED BY THE CREATIVE TEAM Research during early stage is better 0 Assessment Research 0 Evaluates the success of the creative product in achieving strategic objectives 0 Research conducted early in the decision sequence has the greatest value If small budget most likely wont use this since best dollar is spent on early stages during situational analysis 0 Pretesting 0 Developmental pretesting concept testing Conducted during strategy development Early in the creative process a Are concepts appropriate for achievement of objectives Quick amp Relatively inexpensive Small sample size Focus on awareness and attitude change DAGMAR 0 Task audience degree time Final Pretesting Finished ads or close to finished Last check before investment in media Cost of the ad is in running it making it is the cheap part 0 Test the multiple ads is worth it to be sure the ad will work with the target market 90 media cost rest admin and prod Field Test Test Market 0 More common 0 Tests the advertising under natural condition 0 Conducted under natural conditions Running real ads in test markets audience doesn t even know they are being the test subjects 0 Sacrifice control for real world impact may not be able to control the weather or access to every outdoor sign SO run in more than one location to even out the variables Laboratory Test 0 Exposure in a controlled setting can get true cause and effect relationship 0 Market research firms paid and asked questions consume the media answer questions This is not the way we normally do things 0 Sacrifice realism for control 0 O 0 Now the campaign is started and money paid But notice testing has been going on from the start allowing advertiser to pull back or modify strategies at any stage PostTesting 0 After the campaign is in the marketplace 0 Evaluation of campaign objectives Evaluate DAGMAR objective n EX Increase awareness 20 in college students by 20 by April 2013 u but don t wait til 42013 to find out if you succeed this is why to run tests all along the way 0 Be innin of situation anal sis for the next cam ai n O 0 When a campaign ends you dont start over they build on previous achievements of other campaigns What is Measured Awareness Awareness Attitude Behavior 0 without awareness you cant get anywhere 86 of ads go unnoticed there are so many its hard for one to stick out How do you break through all the ads just like getting noticed in a bar 0 Be Loud equals spending lots of money 0 Be Flamboyantly dressed equals being creative in ads Recall Day After Recall o The percent of respondents that can recall a message the day after exposure to the message 0 Usually done through telephone surveys very unlikely that commercials will be remembered even if you do stick around for the commercial 0 Problems Low involvement products often test poorly u just by their nature Less effective for emotional messages a emotion based ads generally need to be seen more times to sink in as they are more subtle May measure intrusiveness not effectiveness n have you been stung by a bee Do you remember it Doesn t mean you like it Some ads are irritating and make you not want to buy the product Reduces creative judgment to a single number n creativity is very subjective May lead to less than ideal situations Attitude changes in the way you think about a product 0 changes in perception 0 looking at pre during and post testing 0 achieved through survey research Behavioral usually found in post testing 0 Sales results are used But many things other than sales affect advertiser 0 Purchase intent Physiological Response 0 No mental effort 0 laboratory testing hooking people up to instruments measuring how the body react to the advertising eye movement blood pressure ekg n measures interest and excitement 0 Not very natural 0 least common of the four and the most difficult to interpret O Methods Available Experiments 0 Cause and effect based on exposure to an ad Field Experiments a Not as accurate as scientific but ok since you get the natural exposure a Natural viewing a Sacrifices control Laboratory experiments Surveys u very common a allows feedback on broad issues a most common is telephone online is fasting growing 0 quick results 0 very inexpensive Focus Groups a Great to test during concept development Many concepts actually come out of focus groups a Great to develop ideas a Qualitative Data deals with subjective thing quantitative is about numbers n Gets video tape and transcript Entails a small group discussion 0 815 people with moderator less the moderator talks the better supposed to stimulate conversations n Focus Group Problems Qualitative data so its more difficult to interpret give the transcript and video to 5 different people get 5 different interpretations Appearance of reality is false if not enough groups are done 0 Often not enough done only 1 or 2 Consumers aren t experts on advertising 0 cant ask is this headline good or font layout ask how affects or how they feel Creativity doesn t equal effectiveness Home Delivery 10411 936 AM Media Terms Reach o UnduplicatedNet Percent of the target market that is exposed to the message at least once during the relevant time period a most common delivery period measured is 4 weeks run a 4 week reach measurement test Frequency 0 Average number of exposures received by a member of the target market during the relevant time period This is used with reach using the same relevant time period 0 Look at total exposures divided by net reach gives you the average frequency of those exposed different people will see the message different amounts of times so average the number of views INVERSE relationship between Reach and Frequency If ad budget stays the same 0 Reach increases frequency decreases Frequency increase reach decreases O O O Rating 0 The percent of the target market that is tuned to a particular program or station Higher the rating the more expensive Advertisers look at what of the target market reached while TV ad sellers may talk about households reached Potential Audience viewers in target marketeveryone in target market rating 0 O Share O O O The percent of the target market s sets in use at a particular time that are tuned to a specific program or station Actual Audience share of viewers watching our show we are advertising in in target market everyone viewing ANY show All shares add up to 100 all viewers are accounted for Get percent by dividing viewers Always a larger number than the Rating only the same if actual market was equal to viewing audience TEST Share higher number than rating Also related Advertisers put together a media plan by building rating points 0 O 0 Gross Rating Points GRP reach x frequency The total number of rating points in a media plan add them up This is a measure of media weight Schedule 10k GRPs this year last year we did 10k GRP n heaver campaign GRP is duplicated reach measurement think of a copy machine NET reach non duplicated GRP Relationships 39 RXFGRP O O O O 80R X5F4OOGRP 40RX10F400GRP Infinite number of ways to reach same GRPs Some media better for reach some better building freq than others INVERSE RELATIONSHIP REACH UP FREQ DOWN I FREQ UP REACH DOWN GRPFR o 4OOGRP5F80R GRPRF o 4OOGRP80R5F O O Allows media planner to adjust easily i GRP 500R806f62 trying to increase awareness but not getting attitude change 0 so we recommend increase frequency Cost per thousand CPM M roman number for 1000 The cost of the advertisement multiplied by 1000 divided by the audience reached x 1000 Audience Measure of cost efficiency Intra media comparison everything equal best value is the lower cpm This tells how much it costs to reach 1000 people Even small difference in cpm rating can make a big financial difference THURSDAY OCT 20 Broadcast Media Media Mix The combination of media an advertiser uses to deliver its message to the target audience Very rare that advertiser uses only one type of media Television Television Strengths o Broad reach not very segmented broader your market better TV is a soda soap wireless network 0 Cost effective 0 Combination of sight sound and motion multiple stimuli allows very powerful communication messages Television Weaknesses Expensive cost per thousand is cheap but reaching so many adds up quickly to high cost broad reach 0 So tend to see the same type of advertisers cars soda major companies with large advertising budgets Not that smaller advertisers wouldn t benefit they just don t have the money Low involvement media audience is not very engaged so not actively paying attention Ad skipping as DVRs are more prevalent more commercials are skipped Time Shifting exposure of advertising messages at a time other than the original broadcast 0 Some programs up to 25 time shifted House is the most time shifted program on the air Clutter present in all media amount of competing messages with your message 0 25 commercials in each break that s the clutter the other commercials and not just in one break but in general even difficult to break through the clutter Difficult for any one ad to stand out n Shouting instead of being creative Television Reach Radio High Low segmentation TV is thought of as a reach building medium even with viewership declining TV is still 1 choice for advertisers in a reach building campaign 0 O O O O 0 Television Frequency 0 Low involvement creates need for high frequency schedules If consumer doesn t see message enough it wont be effective Reach x Frequency GRP Rating higher rating costs more money 0 O O 0 Radio Strengths not internet or satellite radio this is paid commercial radio Audience segmentation Low cost the more segmented the smaller the audience 0 any advertiser can afford to advertise on radio 0 Large advertisers still use this but generally use radio to zero in on a specific target group with a specific message Accessible radio is everywhere can take it with you sporting shopping beach home car etc 0 often the last type of advertising a consumer is exposed to before a shopping visittrip Local 75 are local advertisers Image transfer take a visual image and transfer it to radio 0 tv is more expensive so if you create an image and establish it there then move it to radio and its less expensive to continue advertising EX Geico voice of gecko n created in TV and billboards but can picture it on radio Listener loyalty 0 TV broadcasts differently during the day covers different content news soaps sports entertainment to bring in a wide audience 0 Radio same basic content all day 0 TV you watch programs not stations 0 Radio you listen to a station not as much a program If advertiser can figure out the one or two channels that are used by the target demographic Radio Weaknesses Limited reach 0 have to buy so many areas to get large reach country rap rock easy listening jazz etc Low involvement 0 often in the background so we don t pay too much attention to it Clutter often heavy schedules are run Reach fragmented due to audience selectivity o ok if narrow target audience the more narrow the better radio is Frequency High across narrow targets Neither is better they do different things Cable Television is different MTV ESPN Weather Channel TLC TNT etc Cable is more of a hybrid of radio and tv best of tv and radio 0 characteristics for both Cost structure on cable is more like radio due to the smaller reach 0 Opening up the TV medium to any size advertisers 0 still gives that audience segmentation like radio advertisers can pinpoint who they want to reach Sight sound and motion for the cost of radio VERY low reach 0 if specialized market works great but for coca cola not as good unless very specific markets 0 exception where cable does reach large audience ESPN college football etc Broadcast Cost Variables Each advertiser does not pay the same price for the same unit of time McDonalds doesn t pay the same as Fedex 0 Prices are negotiated o The more spent end up with better deal per unit buying in bulk gets you a volume discount Variables 0 Audience size the more people the more money Where ratings come into play THIS IS THE SINGLE MOST IMPORTANT VARIABLE 0 Supply and Demand Finite amount of airtime available to sell a Not like a clothing manufacturer who can make more clothing As demand increases the price increases EX modern family 30 minute show 8 minutes to sell a if getting close to airtime and time remaining then the price will drop Certain times of the year a TV 4th quarter is most expensive Holiday shopping period a Ever even year elections October political advertising 0 Less hours for other advertising a Least demand is 3rd quarter Summer months has least viewership 0 Most show are not first run O o daylight savings time n RADIO 3rd is most expensive people out for summer months Dayparts segment of the broadcast day a Primetime Morning Drive etc a costs change Geographic coverage Some stations are more powerful meaning they reach more people Editorial Content what is being broadcast Special programming a Academy awards CPM will be bad but cultural events people anticipate and talk about a Sunday political talk show can reach politicians who would be working during normal week Length of Message Longer more expensive Print Media 10411 936 AM TUESDAY OCTOBER 25 2011 Print and Emerging Media Magazines 0 Categories General Interest News a High readership n Broad markets Special Interest n Designed for a specific demographic or lifestyle segment a Very specific target markets Business publications Trade Journals a Specific groups of professionals a Narrowly targeted Magazine Strengths Specific reach segmentation Long life 0 tend to stay around increasing the likelihood others will see it brother sister roommate etc dr office Production quality 0 effective image based advertising glossy good paper etcf High involvement 0 doesn t work in the background also usually interested in the columns or content 0 since ads generally follow contente and reader is interested in the contente reader is more likely to be interested in your ad product Detailed presentation of information Magazine Weakness Long lead times 0 810 weeks amount of time needed before production 0 not as flexible in reacting to market conditions can cause embarrassment beyond their control a world trade center ads running after attack No control over timing of message delivery Clutter present in all media 0 least cluttered is general interest 6040 newsad content ratio 0 fashion flipped 4060 newscontent Magazine Reach Specific opportunities amp Minimal wasted coverage 0 Paying for audience members that are not part of your target market ads are designed for a specific group of people 0 Magazines minimize wasted coverage Pass along readership increases reach 0 due to long life Magazine Frequency generally monthly or weekly Difficult to build since only come out occasionally Rereading increases frequency Multiple ads may be purchased in one issue 0 but generally magazines are not thought of as frequency building Newspaper Strength 0 Catalog value 0 Extensive reach in a local market 0 immediate im act even with readership levels down 12 the adult population is reached in a 7 day period 0 Wea kness o Wasted coverage if a narrow target market broader the market the more effective Dept store the most run ads in papers due to their broad target market 0 Poor production quality so much content they print on thin paper printed fresh and smudges doesn t look and feel as good as magazine a not used as much for mood or emotional advertising 0 Short life span new copy comes out so quickly and most people don t keep Declining readership advertisers seeking more alternatives like online 0 Clutter Sunday is the most cluttered day of the week since more people have time on Sunday advertisers want to be in that issue 0 Newspaper Reach High nonsegmented reach in a local market 0 not segmented as much Newspaper frequency Easy to build Print Cost Variables Audience size 0 larger the readership the more you pay Placement position 0 inside covers etc most expensive is back cover 4th cover 0 weather page in the newspaper is more expensive destination site 0 right hand page has more readership amp easier to clip coupon Size 0 Color vs black and white 0 basic is black ink on white paper 0 4 color processing Quantity of the purchase 0 more you buy the less you pay per ad 0 each advertiser is not paying the same money Special Paper or customization o scented ads 0 different paper stock 0 draws readers and breaks through clutter Supply and Demand 0 not an issue in this medium because they will just add in more pages usually increments of 8 64 pgs 72pgs etc Out of Home We live in a verv mobile societv Out of Home Media Billboard largest segment Transit Advertising 0 Taxi 0 BUS 0 Subway 0 Airport Stadium scoreboard signage etc Strengths 0 Long life leads to high frequency usually long term contracts 30days to a year 0 High reach through purchase of certain locations and quanity of ads 0 Possible minimal wasted coverage by where you pick to place the ads Weakness 0 Limited message 0 No detailed messages little use of copy Out of Home Reach O O Broad Reach Geographic segmentation Out of Home Frequency 0 0 High due to repetitive travel patterns Long life Out of Home Cost Variables O O O O O 0 Audience size Size of board Quantity of purchase Location Duration of purchase Extras extensions cutaways additions Emerging Media 10411 936 AM Emerging Media Rapidly changing Internet Strengths 0 Target market selectivity 0 Low Cost 0 Tracking Clickthroughs n of viewers that click on ad Unique visitors Deliverability always available not tied to time Flexibility ads can be changed pulled and modified at will 0 Interactivity gets audience engaged 0 Integration easy to tie in with other promotion plans a contests n sweepstakes n O O Weakness 0 Low Reach newspaper and TV are big reach 0 Intrusive people don t like popups spam mail 0 Low click through rates 0 Clutter Tvpes of Internet Advertising Banners 0 Ads that appear on websites 0 Static banners get very low click through rates 12 0 Animation or music grabs attention better and will increase click through Sponsorships 0 Payments to maintain another site 0 popular on search engines Popup Popunder o A page that opens either in front or behind another window while it is loading In front pop up Behind pop under Email 0 Blasts Direct email to large number of recipients 0 Permission Marketing Viewer gives permission to receive email Provides information specials exclusive offers Streaming audio and video 0 Inserting TV or radio ads into programming content internet radio Pandora hulu a sometimes can pick the ad a rarely can skip through these ads a generally less commercials only 1 or two less clutter Other Emerging Media Social Media 0 Various online technology tools that allow people to communicate easily via the Internet to share information and resources Facebook Twitter Allows businesses to build relationships with the consumers Advergaming 0 Advertisers place their products in video games real world products Mobile Commerce 0 Ads sent via text message coupons Contests Four Square check in and get points become mayor collect badges promotes frequency Product Placement 0 Product placed in programming content American Idol coke Sunny Philadelphia Coors Light Sponsorships 0 Company provides funding in exchange for being mentioned as an event sponsor O O O O O No perfect delivery system 10411 936 AM Media Planning 10411 936 AM Media Planning Maximize prospects reached while minimize waste Medium vs Vehicle 0 Medium Broad category of message delivery magazines radio internet 0 Vehicle Specific delivery system within a media category newsweek nbccom comedy central 0 Quantitative Vehicle Decisions numbers or quantity Which vehicles magazines deliver the message to the target a rank these based on readership of the target market take top 50 vehicles CPM of alternative vehicles a look at cost between top 50 and cut to 25 based on value Ability of different vehicles to build reach or frequency over time n Depends on type of vehicle as to weather it is reach or frequency look at top 10 magazines based on reach 0 Qualitative Vehicle Decisions subjective deals with if the vehicle is appropriate to the product Does it have appropriate editorial content for the message EX Coke does not air advertising in news programs Scheduling o Marginal Learning Theory The amount of new knowledge acquired with each exposure each exposure you get a little more information a not as much as the first time but cumulatively you have more knowledge Marginal Learning decreases as repetitions increase 0 The more exposure the less you get out of it there is a point of diminishing returns 0 Learning decays very rapidly without repetition decays rapidly n in a steep decline Pull you ads and you are out of the consumers mind u out of sight out of mind How do you balance Advertisers change the message a see Mc Donalds all the time but they advertise different product a Coke Christmas summer always message about happiness and coke 0 but as one begins to diminish another one starts 0 Scheduling Strategy Concentrating repetitions in a condensed period of time creates lower overall awareness than distributing them over an extended period of time o If you concentrate you ads creates lower awareness good at first for awareness but declines rapidly due to learning decay Constant ads yield a higher awareness over time 0 Choice depends on the advertising objectives Concentrated Repetitions n often seasonal or if campaign needs quick response Distributed Repetitions Factors Affecting Scheduling 0 Single exposure is usually ineffective 0 Goal should be to enhance frequency not reach 0 0 Frequency exposure to an ad one time isn t effective usually takes multiple exposures for an ad to have an effect 0 Goal of Media Planning is to enhance frequency not reach media plan budget for ZOOGRB n allocated so as to reach 70 3 times but creative says in field tests need average frequency of 4 times running this ad is a waste of money a Better to drop the number you reach to increase the frequency 0 A good starting point is a base frequency of 3 base freq of three is a common start a then move up or down based on the current sitations 1 Factors that affect freg uency Marketing Factors 0 Less Freq Higher reach More Freq Less reach Established Brand New Brand Dominant Brand Smaller brand O O I Brand loyalty I I Brand switching I Long Purchase cycle I I Short Purchase Cycle 0 Purchase Cycle 0 O O O O The amount of time between purchases of the same product Short a milk soft drinks Intermediate a Pet food Long a Electronic equipment a Shorter purchase cycle more likely to switch brands as there are more opportunities to buy Larger companies can work on expanding the customer base where the smaller ones must keep frequency up Creative Factors Less freq needed More freq Simple message Vs Complex message Product Appeal fact Comsumer Appeal emotional Message Pool The number of different ads the advertiser has produced The larger the message pool the more frequency you can run Smaller the pool less you can run Marginal learning says the more exposure to the same message you get less and less from it n n u see the same ad over and over they burn out have a lot of ads you can have high frequency 0 Media Factors Clutter is a disadvantage in all media So how do you deal with it n n 1 Some have less clutter talk radio certain magazines news less than fashion More clutter need high freq Need less req focus on reach Vs High clutter Low Clutter High CLutter High involvement Low involvement TV radio Editorial content Computer models can help predict an average frequency GRB desired freq Reach Everything gives advantages to the larger guys can focus on reach get cheaper rates But most companies are small so how do they compete Media Dominance n A large percentage of a limited budget is spent in a medium or vehicle to generate adequate frequency a EX Car dealer instead of running radio tv internet etc just run radio different channels remotes etc Gives the appearance that we are dominating on the radio If very small take one station and dominate it n Give the appearance that we are larger than we are a Large advertisers have a counter to Media Dominance o Defensive Scheduling Overspending on advertising in order to force competitors to under spend EX if small guy is dominating a vehicle bigger company could spend more to take away their dominance Media Strategy O TEST 2 REVIEW 10411 936 AM Tuesday no class Sales Promotion not on this test Copywriting through Media Planning Pages 33 62 Format 50 questions multiple choice 4 options 75 minutes to take exam Bring ID Pencil 2 945 Commonly missed questions are on Assessment Research p 43 Media Terms p 47 Media Planning p 59 No math but know the terminology p48 Rating and Share are both 0 Advertisers are purchasing people not because they like the show Measured based on of market that is tuning in Rating is more important for advertising of overall target market Potential audience is everyone in the target market of target market tuned to a particular program the rating viewersPotential audience R 0 Share Is a measurement of the of people watching a show out of everyone who is in our tarket market Compare our show to everyone watching TV actual audience share ViewersAAShare o GRP reach x frequency Net reachreached at least once x average frequency GRP O O P 43 Different types of research used during decision making a Directional Research points us in the right direction but this doesn t tell us if it works a Assessment Research tells us if we are successful in achieving our goals Evaluates our situation like a test This is ongoing testing goes on throughout the creative process to increase the likelihood of a successful campaign If you can only do one do directional p 45 Physiology Testing is a form of assessment research a based on body reaction to advertising a pupils blood pressure a Eliminates subjectivity or bias on the part of the respondent sometimes difficult to interpret but is unbiased p50 Cable TV is the best of both worlds a blend of TV and Radio a powerful form of communication sight and sound perception of motion a TV is expensive because of vast coverage a cable is more segmented allowing better targeting like radio broadcasting the same format all day cheaper like radio creative content like TV a reach low so higher frequency O o p 59 Marginal Learning Theory Once Media mix is determined how do we go about scheduling the ads n we need to know how people learn and forget Marginal Learning a With each exposure you learn less and less but still adding to the cumulative amount of what you are learning a learning builds at a decreasing rate so at a point in time there are no benefits to keep running but if we pull the ad people will start to forget us 0 so we switch the ad 0 EX Mc Donalds advertises different food Chevy will feature a different car they wont just go dark for a month 0 O 0 Reach and Frequency are inversely related but doesn t mean you cant have high reach and high frequency just costs more 0 O 0 p37 0 Visual vs Verbal todays society has a lot more visual communication than verbal visual usually doesn t convey specifics about a product benefit or attribute a so verbal has to compliment the visual p39 0 Types of layouts Picture Window Layout Standard Layout a Copy and bold visual in the same ad a Picture at top Headline as window sill body copy at bottom like window sill and wall below Allows Headline is below the visual since visual is noticed first focal point this follows the eyes natural movement If headline is above focal pointpicture often it is missed P 61 0 Every media plan is different Different situations But we know a single exposure is not enough Since we know an ad must be seen a number of times a must maximize views sacrifice reach to achieve frequency Determine the frequency needed the calculate the reach you can afford based on your budget Base frequency of 3 is a starting point High degree of brand loyalty focus on reach expanding your market a If brand switching and low loyalty High Frequency to keep bringing in the new switchers 0 Message can affect scheduling also If clear maybe less frequency will be needed Need to know the differences of 0 Public Relations management function action oriented understanding and goodwill target specific publics 0 Free media no control of message time etc 0 Differences between Advertising amp PR 0 Goals I Advertising inform amp persuade target to buy specific brands of products I PR develop understanding amp goodwill o Credibility PR seen as more credible messages appear in nonpaid media 0 Cost I Major advertising costs media time amp space I Major PR costs nonmedia 0 Control I Advertising more control over message can always control I PR less control over message cant always control 0 Interest 0 Advertising editorial interest not very important we don t need to generate interest 0 PR critical to success we don t need to generate interest 0 Personnel I Advertising more likely to have a business background I PR more likely to have a journalism background 0 Similarities between Advertising amp PR 0 Stimulate interest in a target group I AD target market I PR target public 0 Research based situation analysis starts w research foundation 0 Specific objectives 0 Detailed knowledge of media 0 Reasons to use PR 0 Relatively inexpensive compared to advertising 0 Cuts through advertising noise clutter 0 Highly credible 0 Develop new sales leads 0 Difficult to reach some publics w traditional forms of advertising 0 Lobbying is an example of PR 0 Corporate Image Advertising an umbrella category of advertising 0 Benefits company image 0 Not specific to one product 0 Corporate image advertising relationships to PR I Share the same objectives as PR I Understandinggoodwill I Paid time provides greater control over message amp media I EX Toyota trying to fix their image after the recall last yr ad fixed on overall image instead of 1 specific model 0 Corporate image product advertising differences I Direction 0 Overall image 0 Not specific products I Tangibility 0 Corporate image is less tangible than product attributes I Upper management involvement entire company 0 Corporate image amp product advertising similarities I Gain attention I Involve audience I Build credibility o EX BP showing real ppl Bill Ford talking I Get action get you to do something 0 Types of corporate advertising messages I General Image most popular designed to enhance the basic image of the company I Financial anything that deals with money creates a favorable image in the financial community 0 EX Charles Schwaab I Advocacytaking a side on something attitude or behavior with the public on a specific issue often controversial alcohol ads don t drink amp drive I Recruiting presents the company favorably to prospective employees 0 EX army I Special situation corporate giving 0 Corporate Advertising Problems I Specific purpose often lacking lack of clear cut purpose I Limited results measurement I What works and doesn t work isn t always known little knowledge I Basic lack of research Budget Strategies 0 Predetermined Methods all financially oriented allocation is determined in advance of advertising task analysis 0 Affordable simplest amp most straight forward nonadvertising expenses and the desired profit are deducted from projected revenues amp part of what s left is the budget Project Revenues Nonadvertising Exp Desired Profit I Problems 0 Least reliable o No situation analysis 0 Leads to under spending 0 Percent of Sales no residual I Budget is some percent of past or pro39ect sales I Problems 0 No situation analysis 0 Difficult to use with new products no sales history to build trends with 0 May lead to under spending 0 Competitive Parity leads to spending wars competitive in its categorydivision I Company s share of industry exp on advertising should its market share I EX Coke Classic Large VS Dr Pepper Cherry Small 0 Objective amp Task Budgeting I Set objectives I Identity strategies I Estimate costs to do strategies I Complications 0 use of several media vehicles messages 0 interaction with other marketing variables 0 interaction with marketplace variables 0 time to achieve objectives is it a long or short term campaign 0 Budgeting for new products I Larger budgets needed need to generate sales immediately you spend on analysis etc but have no sales yet I Awareness I Trial 50 of ppl I Double budget 0 Agency Compensation I Commission 15 of media billings I Fee the role of the full service agency is changing an d is more on a fee system I Combination reduce media system amp fee I Other 0 Bonus make a lot more on annual bonuses o Retainer a fixed expense level steady stream of income Retail Advertising 0 Retailing online or brick amp mortar selling products directly to final consumers personal use nonbusiness use 0 Retail advertising tasks 0 Create awareness within a store or chain 0 Create a unique position store identity 0 Reduce excess inventory I Key moving merchandise through the store 0 Differences between retail amp product advertising 0 lmmediacy generate sales to reduce inventory the more inventory we can bring in 0 Product VS Location retail advertising stresses location 0 Breadth of product linebalance advertising across thousands of products only constant is the store 0 Geographic coverage often focuses on a specific geographic area 0 Types of retailer advertising 0 Regular price line advertising est for positioning of the store I Focus on product line amp regular prices I Positioningadvertising I Long term I EX staples low prices 0 Sale advertising most common I Reduced prices for limited time shortterm response creates a sense of urgency before prices go back up designed to move inventory 0 Clearance advertising most extreme intense I Huge markdowns closeout sales very immediate inventory change over least image oriented 0 Retail Media selection O O O O 0 Media selection issues I Local media I Shortterm results Print Media I Newspaper geographic coverage amp short term results 0 Largest source of retail advertising I Magazines 0 Weeklymonthly 0 Awareness building 0 Regular price line advertising Broadcast I TV high GRPs short time period 0 Effective for both sale amp regular price line I Radiothe more narrow the more specific 0 Effective with narrow target markets Direct Mail minimal wastage coverage I Current customers credit card have coupons I Geographic trading area local Outdoor not as useful amp not used as often as other retail media I Limited use I Longer period Image building amp regular price line Geographic segmentation Yellow pages not popular for packaged goods popular but expensive Cooperative Advertising Coop manufacturer funds all or part of the retailer s advertising of that product 0 O O EX Kohls amp Levi s Strengths many advantages I Offer benefits to retailers I Stretches budget I Leverage with media negotiate better advertising rates enhances rep of company bc tying into reputable brands I Tiein to national quality products I Advertisements are supplied Weaknesses I Contrasting goalsmore control when they pay for ads I Message and media restrictions ads right towards manufacturer 0 Ex Levi s pays for Kohls ad when their brand is advertised if Kohls says no Levi s can go to some other storecompany Message Strategy 0 Information VS Image I High involvementfocus on info price technical etc I Low involvementfocus on image I Relationship to national advertisers 0 Strong tiein 0 Let national company create image 0 Focus retail ads on info 0 Creativity on a limited budget I Create consistent messages I Avoid ads that don t stand outthey ll just blend I Focus on short amp long term in ads 0 Relevant issues wrapped around short term effects I short life so rapid impact is needed I grab the readerviewerlistenerNOW 0 Sales Promotionquicker we can turn inventory the quicker we can bring in new inventory I Significant component of retailing I Both focus on shortterm behavior Budget Issues 0 Percentage of sales the most common 0 Cooperative advertising increases the budget 0 Image vs salesboth are important combo of 2 is desirable o Charity VS Advertising not the same thing I Charity isn t advertising set up a separate budget long term return I Ex Yearbook ads feel good thing Radio time advertising Newspaper ad always wins Budget should be larger if the store 0 Is in a less favorable location 0 Is new expanding or changing its positioning 0 Faces strong competition 0 Stresses price too easy to match by competition comp can always match price Business to Business when 1 business advertises to another business 0 Ex American Fuji Seal Inc puts labels on everything for companies Business Market Diversity 0 Industrial raw materials 0 Government roads military gear 0 Professional advertising medical machinery B2B is used in 0 Making consumer goods 0 Making other business and industrial goods and services 0 Facilitates the operation of a business Differences between industrial quotB2Bquot amp Consumer Markets 0 Final users include middlemen and industry 0 Complex buying situations 0 Key decision makers may be outside the company companies hire consultants to help guide them amp advises client 0 Sales reps are often needed Goal of B2B Advertising 0 Increase awareness of product company amp capability also selling reputation amp image 0 Create a favorable image reputation 0 Lower the cost of selling Markets 0 Markets are small amp concentrated 0 Each customer is large 0 Consumer demand often drives markets buying less or more growth is based on consumer demand 0 Minimal Secondary data compared to consumer market don t rely on primary data which costs more 0 Segmentation geography amp company size 0 Products for specific industry 0 Technical amp complex 0 Built to specifications 0 Buyers 0 Professional buyers sole function is to purchase products I More reliance on rational BZB market place than consumer market place 0 Pricing amp Distribution 0 Negotiation or bid price often established by this 0 Short or often direct channel of distribution before it gets to retailer 0 Bid lowest price incentives who will deliver 15 0 Media Selection 0 Trade publications dominant medium than any other 0 Direct Mail small targets minimal wasted coverage detailed presentation complex info 0 Catalogs extensive list of standard products independent distributors 0 Internet 0 Consumer Media used with broad target markets 1020 of consumer media 0 Message Strategy 0 What to say I Product attributes gives credibility I Company attributes I Price not as important negotiated to begin with not major selling point in 323 o Rational VS Emotional Messages I More rational than consumer advertising I Emotion still important I More broadmore emotional o How to say it I Testimonialpopular in 323 market place 0 Experts peers don t see celebrities very emotional don t say a lot about product Case History 0 A story 0 3rd person version of a testimonial Demonstration 0 Show what the product does amp how it works News style 0 new product info to communicate Generic 0 Positions the company as expert in the field 0 When its time you ll think about the company 0 Sales Promotion 3 popular types 0 Trade shows exhibition of product category vendors products sales leads I Ex boat shows 0 Specialty items keeps the company name in front of the customer premium items give aways 0 Samples short purchase cycle lower priced items trying product increases the likely hood of a purchase Service Advertising 0 Service an object of a transaction which doesn t involve the transfer of ownership of a tangible product 0 Elements of a service task or work use of a facility use of a product 0 Most services are intangible not able to be stored not able to be transported 0 Characteristics 0 Intangibility I Intangibles are more difficult to assess I Difficult to portray in advertising I May need more advertising 0 Inability to store the service I Highly perishable services use strong price advertising amp promotions o Inability to transport the service I Service provider may serve limited geographic area 0 Quality control I Multiple production centers may mean variable Quality control I Advertising may create expectations that cant be met 0 Managing demand I Price is the primary response 0 Private Sector Services in for profit 3 types 0 Convenience time amp place savings I Ex ATM car wash tick master delivery monstercom 0 Shopping difficult to evaluate prior to usage I You don t know until work is performed I You can have both convenience amp shopping service in 1 0 Professional professional industries I Healthcare legal financial I Ex ally straightforward etrade 0 Social Marketing 0 Issues amp ideas attempts to make us think amp act differently o Nonprofitorganizations 0 Government 0 Problems I Weak benefits personal benefits asks for changes in the consumers behavior I Limited personal satisfaction I Questionable demand all of nonprofit organizations don t have the funds to determine demand I Psychic costs emotional costs associated with compliance costs in terms of behavior 0 Ex ppl have their minds made up about giving blood I Insufficient budgets lack of funding Conclusion 0 Capitalist Society advertising is a tool companies use for their own purposes doesn t have a conscience 0 Effects on Society 0 O O O Motivates Consumers Creates brand preference We buy brands not items Showcases competitive adva nta ges Discussion of unique benefits 0 Ex kindle creating better graphics than ipad for consumers lowering costs Maintain strong competitive position Improves products Clear benefits when improved products meet needs 0 Ex can now read kindle in sun but not ipad Communication least expensive way Most cost efficient way to communicate with a mass market 0 Economic Issues 0 O O 0 Advertising results in higher prices No clear evidence Affects price less than other expenses 0 Labor 4 0 Materials 4 May 4 Price if 0 Product is truly different 0 Ex when kindle 1st came out 0 Little or no competition Mature product category 0 Perceived differences are small 0 Image advertising May reduce price if 0 Competition is intense 0 Ex when ipad came out kindle cut prices 0 Product category is growing 0 Advertising creates demand 0 Economies of scale kick in Barrier to entry bc its expensive to launch products High cost of product introduction Market Concentration limited competitors in a product category could result in higher prices Product Proliferation too many brands only as many as the market will bear 0 Consumer Decision Making 0 O O Manipulation not going to tell you good AND BADll Wont occur if marketing concept followed Needs must exist for product to be a success Advertising reflects high value on material wealth More likely to occur with low involvement groducts Advertising doesn t provide complete information Advertising is advocacy don t expect full info More info doesn t always lead to better decisionmaking Advertising misleads deceives amp is full of lies that s a minority about 3