Advertising Direct Marketing

U.S. advertising expenditures ($ millions)U.S. advertising expenditures ($ millions)

Types of Advertising

• Product advertising - message focuses on a specific product

• Institutional advertising - message focuses on activities, personality, or point of view of a company– advocacy advertising– public service advertisements (PSAs)

Who Does Advertising?

• An advertising campaign is a coordinated, comprehensive plan that carries out promotion objectives and results in a series of advertisements placed in media over a period of time

• Agencies– limited-service– full-service

Alternative structures of advertising agencies used to Alternative structures of advertising agencies used to carry out the advertising programcarry out the advertising program

The Body of Campaign Creation

• Account management (soul)

• Creative services (heart)

• Research and marketing services (brains)

• Media planning (legs)

Developing the Campaign

Identify the Target Market

Establish Objectives: Message and Budget

Design Ad Campaign

Pretest Campaign

Choose Media and Schedule

Who is the Target Market?

Successful campaignsspeak to the target audience.

Establish Objectives

• Message goals (adverbials)

• Budget– Comparative parity– % sales– Objective-Task– All you can afford

Design the Ad

• Creative strategy is the process that turns a concept into an advertisement

• Creatives try to develop a “big idea”

• Creatives:– art directors– copywriters– photographers

Advertising Appeals

• Reasons Why (USP)

• Comparative Advertising

• Demonstration

• Testimonial

• Slice-of-Life

• Lifestyle

• Fear

• Sex

• Humor

• Slogans and Jingles

Name that Brand!

• Double your pleasure, double your fun

• Good to the last drop

• My bologna has a first name….

• I’d like to buy the world a _____

Pretest What Will Be Said

• Copy testing measures ad effectiveness– Concept testing– Test commercials (with animatics or

storyboards)– Finished testing

Pretesting – Finished Testing

• Jury Tests

• Theater Tests

• Portfolio Tests

Choose the Media

• Media planning is a problem-solving process for getting a message to a target audience in the most effective fashion– Where to say it– When to say it

Television

• Pros– Creative and flexible– Prestigious– High impact messages– Network TV is cost

effective for reaching mass audience

– Cable TV is good for reaching targeted group

• Cons– Quickly forgotten– Requires frequent

repetition– Increasingly

fragmented audiences– High costs on an

absolute basis– Shorter ads result in

increased clutter

Radio

• Pros– Good for selective targeting

– Heard out of home

– Relatively low cost

– Can be modified quickly

– Uses listener imagination

• Cons– Listeners may not pay full

attention

– Small audiences mean ads must be repeated frequently

– Not appropriate for products requiring demonstration

Newspapers

• Pros– Wide exposure and

extensive market coverage

– Flexible format permits use of color, different sizes and editions

– Useful for comparison shopping

– Local retailers can tie in with national ads

• Cons– Most don’t spend much

time reading newspapers

– Low readership among teens and young adults

– Short life span

– Very cluttered

Magazines

• Pros– Narrowly targeted

audiences by specialized magazines

– High credibility and interest level provide good ad environment

– Long life span and pass along rate

– Excellent visual quality

• Cons– With exception of direct

mail, the most expensive form

– Long deadlines

– Must use several magazines to reach target

Outdoor

• Pros– Very high reach

– Low cost

– Good for supplementing other media

• Cons– Hard to communicate

complex messages

– Cannot demonstrate product effectiveness

– Controversial and disliked

Out-of-Home Media

Billboards provide reach and grab attention!

Direct Response

• Pros– Ads can target extremely

narrow audiences

– Messages can be timed

– Easy to measure effectiveness

• Cons– High cost per exposure

– Target lists must be constantly updated

– Ads lack credibility among many consumers

Innovative Media

• Place-based media - transmit messages in public places

• Guerilla marketing - use unconventional locations and intensive word-of-mouth campaigns to push products

Internet Advertising

• Banners

• Buttons

• Sponsorships

• Search engine and directory listings

• Pop-up ads

• Email– permission

marketing– spamming

• Web site design

Media Scheduling

• Specifies the exact media to use for the campaign, when and how often the message should appear

• Outlines the planner’s best estimate of which media and vehicles will be most effective in attaining campaign objectives

Factors Affecting Media Scheduling

• Target market profile

• People reached by different vehicles

• Advertising patterns of competitors

• Capability of medium to convey desired information

• Compatibility of product with editorial content

Media Scheduling: How Often?

• Continuous - steady stream throughout year

• Pulsing - varies amount of advertising based on when product is in demand (e.g., suntan lotion)

• Flighting - advertising appears in short, intense bursts alternative with period of little to no activity

Media Schedule

Evaluating Advertising

• Posttesting means conducting research on consumers’ responses to advertising messages they have seen or heard– unaided recall– aided recall– attitudinal measures

Evaluating Advertising

• Post testing the advertising– Aided Recall (Recognition-Readership)– Unaided Recall– Attitude Tests– Inquiry Tests– Sales Tests

• Making needed changes (feedback)

Direct Marketing

• Any direct communication to a consumer or business recipient that is designed to generate a response in the form of an order, a request for further information, and/or a visit to a store or other place of business for purchase of a product

Forms of Direct Marketing• Mail order

– Catalogs– Direct mail

• Telemarketing• Multilevel sales• Direct response television

– Infomercials– Home shopping networks

M-Commerce

• Promotional activities transmitted over mobile phones and other mobile devices such as personal digital assistants (PDAs)– Prevalent in Europe and Asia