Advertising

Professor S.J. Grant Spring 2006

BUYER BEHAVIOR, MARKETING 3250

Outline

Introduction to advertisingIt works!How it works

• Memory and wearout

Keys to effectiveness A case study: Milk

Advertising Works!

1980s: Reebok’s share of the athletic shoe market grew from 0 to 33% share in less than 2 years

1990s: P&G grew Pantene shampoo from a small share brand to the category leader

2000s: Dreyer’s new Dreamery ice cream attained more than a 10% share in 18 months

34%

21%

14%

38%

45%

31% 30%

51%52%

43%

32%

59%

0%

10%

20%

30%

40%

50%

60%

Recallreading ad

Rated adas

believable

Rated adas

effective

Boughtadvertised

productLow involvementMedium involvementHigh involvement

Source: Cahners Advertising Research Report 120.12 (Boston: Cahners Publishing Co.).

Advertising Effectiveness

Memory & Wearout

Repetition (for example, advertising exposures) aids long-term storage of brand name and usually boosts favorableness of evaluation

At some point, too many repetitions cause wearout to occur

Memory & Wearout

Number of Repetitions

Evalu

ati

on Wearout occurs

Memory & Wearout

Why does wearout occur?Fatigue, boredom set inMessage recipient blocks incoming

information • Rehearses own thoughts• Counterargues• Unmotivated to allocate processing

resources to message

Memory & Wearout

How many repetitions before wearout occurs? Depends on message complexity

What is message complexity? Information complexity Level of detail Humor Musical or auditory richness Ambiguity Incongruity

Paradox of Familiarity

Novices and experts will process messages differentlyNovices may not apprehend message

at first, pay more attentionExperts, assuming knowledge, will

pay little attention• After a period, experts may return

attention

Paradox of Familiarity

Number of Repetitions

Evalu

ati

on

ExpertsNovices

Breaking through Boredom Skepticism and counterargumentation Information clutter

Tapping a powerful emotion Providing news

Keys to Effective Advertising

Case Study: Milk

National Fluid Milk Processor Promotion Board launched 2 campaigns in effort to revive a 20-year decline in milk sales

• Milk Producers launch

Got Milk? Campaign

in November 1993 • Dairy Farmers introduce

Milk Mustache print

advertising campaign

in 1995

Case Study: Milk Mustache

Who is the target for the Milk Mustache campaign?Began with consumer insight based

on a correlation: mothers who drink milk have children who drink milk

$35 million print campaign sought to reach adults (non-users)

• Execution: Celebrity, athlete endorsers

"What's my bag? It's milk, baby, yeah! The calcium in lowfat or fat free milk helps to prevent osteoporosis and keep my bones strong. So I can keep my mojo working overtime. Oh, behave."

Milk Mustache

"Lick it up. After rock and rolling all night, we need nourishment. And every drop of chocolate milk has the same vitamins and minerals regular milk has. All the more reason to have a really, really long tongue."

Milk Mustache

"Make ours doubles. My sister and I hate to lose -- nutrients, that is. So we drink milk. It has nine essential nutrients active bodies need. You might say it's the only thing we serve.

Milk Mustache

Case Study: Milk Mustache

Who is the target?Adults who are nonusers

What is the positioning?For nonusers who want to be strong,

healthy, attractive, athletic, sexy, smart

• New users

Reaction 36% of women said campaign would make

them drink more milk 70% who viewed entire campaign now

consider milk cool, contemporary 86% thought milk is delicious after seeing

campaign 1% and skim have made sizable gains and

2% and whole have had sizable losses

Case Study: Milk Mustache

Case Study: Milk

Strategic errors?Convincing adults to reconsider milk

as a beverage choice requires delivery of news

• Campaigns introduce little news

Benefits of milk are diffuse, wide-ranging, conflicting

• Milk is touted as beauty aid, but is associated with fat content

Case Study: Got Milk?

Who is the target?Adults who already consume milk with

food What is the positioning?

For milk drinkers who never want to be caught without milk

• Incremental usage• Focused on developing heavy users

Case Study: Milk

Dairy Council declares the milk campaigns a success – “decline in milk sales has been halted”

Next step: product changesDean’s packaging “Chug” to make

milk portable, convenientSuiza producing lowfat milk with

consistency of 2%

26

25

24

1988 1990 1992 1994 1996 1998 2000

Gal

lon

s

Source: USDA

Ad campaign

Case Study: Milk

Case Study: Milk

Business results? Since 1945, however, milk consumption has

fallen steadily, reaching a record low of just under 23 gallons per person in 2001

• Americans consuming less than 8 gallons per person of whole milk

• 1945: nearly 41 gallons • 1970: 25 gallons

• In contrast, per capita consumption of total lower fat milks was 15 gallons

Interestingly, cheese consumption is rising• In 2001, Americans consumed 30 pounds of

cheese

Case Study: Milk

Product changesDean’s offers milk in “Chug” bottlesSuiza is launching skim milk with taste

of 2% aimed at womenLowfat formula for childrenFlavored milk

• 6% of consumption represents 40% of new growth