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Advertising Strategy

Session 7

Summer 2008

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Advertising Planning Process

Advertising Objectives Advertising Objectives

Budget DecisionsBudget Decisions

Creative StrategyCreative Strategy

Campaign EvaluationCampaign Evaluation

Media StrategyMedia Strategy

Brand Positioning Target Market

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Advertising Objectives

Create awareness for new products

Inform consumers » of product features and benefits » price changes» Important for building primary demand

Persuasion» Build brand preference or change buyer perceptions» especially important for building demand in competitive markets.

Reminder advertising: maintain top-of-mind awareness

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Hierarchy of effects Communication Process

Awareness

Interest

Liking, Preference

Purchase, Action

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Creative Strategy

Develop the USP “unique selling proposition” or the “Creative Hook”

Unique Selling Proposition Translates “brand positioning” into a compelling message.

Objective is “Memorability”

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Creative Strategy:Emotional vs. Rational Appeal

Emotional = appeal to psychological, social or symbolic needs. “Pull at the consumer’s heartstrings”

Rational = provide information about functional and utilitarian aspects of the products.

Shift towards emotional execution strategy in the later part of the product lifecycle

» Intense competition and proliferation of substitutable products (Michelin)

» Critical to increase “Product involvement”

» http://www.youtube.com/watch?v=sIkQRXkpwQI

» http://www.youtube.com/watch?v=SdPLf3FoInE

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Taxonomy of Emotional Appeals

Fear appeal can be an effective motivator but has the danger of alienating

consumers» Show the consumer how to avoid the problem.» Provide concrete supporting information

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Taxonomy of Emotional Appeals

Humor» “Memorability” device.» Humor should not clutter the product benefits.» Execution detail: Show consumer how to avoid the problem.» Pre-test to check if consumer

– i) recalls product benefit

– ii) Attitude_product versus Attitude_ad = will the message be persuasive and will the product be taken seriously.

» http://www.youtube.com/watch?v=kVCGBohc20k&mode=related&search=» http://www.youtube.com/watch?v=f3mXaATLeRM» http://www.youtube.com/watch?v=zV-yGp4l8B8

Fantasy» seen often in cosmetics advertising» http://www.youtube.com/watch?v=r1g5qcKcVCM

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Types of Rational / Informational Appeal

Technical Expertise or Scientific Evidence: (Crest…“Look ma no cavities”)

Comparative: Product features vs. competition (Nike vs. Reebok)

» http://www.youtube.com/watch?v=xhiyDQNmEjY

Advantages» High ability to get attention» Helps in competitive positioning

Disadvantages» Advertise the competition. Makes competition more salient.» Can use only if there is clear objective superiority for the advertised

attribute.

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Media Decisions

Define the target market.

Quantitative Measures

Reach: the percentage of people in the target market who are exposed to the ad campaign during the defined time duration

» 70% of the target market during the first three months of the campaign

Frequency: A measure of how many times an average individual in the target market who have been reached .

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Media Decisions

Advertising Exposure Gross Rating Points = 70(Reach) 4(Frequency) = 280 GRP’s 1GRP = 1 exposure to 1% of the audience.

Qualitative Measures Impact; is the qualitative aspect of the medium

» Newsweek vs. The National Enquirer» Sports illustrated vs. Time for tennis racquets

Trade-off between reach and frequency

Pulsing vs. Continuity» Pulsing most critical for new products. Why?» Continuity needed when faced with intense competition

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Message

Good advertising creative strategy translates the brand’s positioning statement into a persuasive and memorable message. A great creative will provide lasting impact even if advertising budgets are constrained.

“ How you say it is as critical as what you say”

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Analysis Framework

Market

Customer AnalysisCompetitor Analysis

Company AnalysisMarketing Myopia

Marketing Strategy

Product

Price

Promotion

Place

Marketing Orientation

Perceptual mapping

Segmentation Positioning

First mover advantages

Branding

Pricing processPricing and innovation (ODI)

Going to market(Goodyear)

Direct marketing(Calyx)

Product Line Strategy(Cambridge)