1.

Businesses use advertising because it does work

2. No one is yet quite sure how it works
 Objectives

 Describe what advertising is and discuss the major

types of advertising
 Describe the process of developing an advertising
campaign
 Explain how marketers evaluate advertising
 Understand direct marketing
 Explain the future of m-commerce
It’s an Ad Ad Ad Ad World

 Advertising is nonpersonal
communication paid for by an
identified sponsor using mass
media to persuade, inform, and
remind an audience.
 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
The Body of Campaign
Creation
 Account management (soul)
 Creative services (heart)
 Research and marketing services
(brains)
 Media planning (legs)
Developing the Advertising
Campaign
 Identify the Target Market
 Establish Objectives, Message, and
Budget
 Design Ad Campaign
 Pretest Campaign
 Choose Media and Schedule
1. Merchandise – what is it that we have to promote?
2. Markets – to whom are advertising ?
3. Motives – why do these consumers buy?
4. Messages – what appeals will work best?
5. Money – how much should we spend and when?
6. Media – where and when should we reach our audience?
7. Measurement – how can we learn to do better?
 Advertising and persuasive
communication system

Advertiser consumer

reactions or IV
Goals (=) responses
I

II intended message perceived V

(=) message

III actual (=) delivered message VI

advertisement

Channel
 Stages in Advertising and persuasive
communication system

Stage I
advertising goals
•Persuasion (convincing of a Brand superiority)
•Reinforcement (assisting favorable consumer evaluation
following a purchase)
•Reminder (to keep it alive)
•Purchase precipitation ( encouraging consumers to buy now)

Stage II
Intended message deals with the strategy by which the
stated goals can be achieved
 Stage III
Actual advertisement
•Encoding of the message this reflects art of advertising
•Conversion of mental strategy into physical reality
•Thousands of interacting decisions – exact words, models
colors music timing etc. Etc.
•Selection and purchase of MEDIA time , space in specific
channels to facilitate delivery of ads to the final consumer.

Stage IV
Delivered ads .
•Deals with the consumer reception process
•Delivery of ad from channel to the consumer
•Conditions under which it is received or even not received by the
target audience
 Stage V
Perceived message .
•Post delivery has the message been perceived by the consumer
•Is the message being decoded as intended by the sender

Stage VI
Reactions or responses
•Do the responses match the goals
 consumer
Advertiser
reactions or IV
I Goals (=) responses

Potential gap Potential gap

1 5

intended perceived V
II
message
(=) message

Potential gap Potential gap

2 4

delivered VI
III actual (=) message
advertisement
Potential gap
3
Potential Gaps and Pitfalls

Potential Gaps 1
The ad strategy is not able to achieve the goals
Could be due to
• goal are unrealistically high
•Lack clarity
•Or the strategy chosen (intended message)

Potential Gaps 2
Recognizes the thousands of tactical decisions that go
together to make up the actual advertising campaign.
The gap will occur in those cases in which the actual
advertising does not capture the intended strategy for
the campaign, or for the mistakes in the ad itself
 If This Is Their Best. . . !
Sometimes advertising deadlines cause problems in local media
as well. This happened in one ad run by a car dealership that
had the bold headline "Here's Our Best to You! Obviously an
untrained assistant had handled the art, which showed no wheels
on th right side of the luxury auto (a different brand than in our
mock-up shown here!), am some tires on the left that give a new
meaning to the term "flat tire!" How many autos d you think
that ad might have sold?
 Potential Gaps 3
Reflects any problem that may occur in the physical
transmission or delivery of the ad to the consumer for
whom it is intended
•Zapping
•Zipping

Potential Gaps 4
Refers to any problem that occurs during consumer’s
perception of each ad as it is delivered to them.
Consumers must be able to understand the
language and symbols as they have been used
by the sender
 Potential Gaps 5
The final potential gap refers to the advertiser’s goal that
the perceived message leads to particular response or
reaction on the consumer’s part.
This gap involves two important processes
1. Retention of message after the ad exposure is over.
(message recall by having stored it in LTM)
2. Consumers need to be persuaded or influenced by the
advertising (to be persuaded or being reminded or
purchase precipitation)
 Hierarchy of advertising effects
Message P
Yes
presentation

Attention A Yes
to
message
No
C Yes
comprehension
No
Yielding Y Yes
To
No conclusions
retention R
Yes
Of
No New belief
Behavior B Yes
on
No New belief
Successful
completion
No
OVERALL IMPACT OF THE ADVERTISEMENT

P = P(P) X P(A) X P(C) X P(Y) X P(R) X P(B)

=0.5X0.5X0.5X0.5X0.5X0.5
=0.0156

PROBABILTIES
•Will be product class specific
•Probabilities for systems stages are not likely to be
equal
•Repetition effect will change the probabilities
•Probabilities need to be applied to huge consumer
market
Establish Objectives

 Message goals
 Budget
 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  Slice-of-Life

(USP)&(UVP)  Lifestyle
 Comparative  Fear
Advertising  Sex
 Demonstration  Humor
 Testimonial  Slogans/Jingles
Pretest What Will Be Said

 Copy testing measures ad

effectiveness
– Concept testing
– Test commercials (with animatics or
storyboards)
– Finished testing
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  Cons
– Good for selective – Listeners may not
targeting pay full attention
– Heard out of home – Small audiences
– Relatively low cost mean ads must be
– Can be modified repeated frequently
fast – Not appropriate for
– Uses listener products requiring
demonstration
imagination
 Newspapers
 Pros  Cons
– Wide exposure and – Most don’t spend
coverage much time reading
– Flexible format newspapers
– Useful for – Low readership
comparison among teens and
shopping young adults
– Local retailers can – Short life span
tie in with national – Very cluttered
 Magazines
 Pros  Cons
– Target audiences – With exception of
– High credibility and direct mail, the
interest level most expensive
– Long life span and form
pass along rate – Long deadlines
– Excellent visual – Must use several
quality magazines to reach
target
 Outdoor

 Pros  Cons
– Very high reach – Hard to communicate
complex messages
– Low cost
– Cannot demonstrate
– Good for
product effectiveness
supplementing
other media – Controversial and
disliked
 Direct Response
 Pros  Cons
– Ads can target – High cost per
extremely exposure
narrow – Target lists must
audiences be constantly
– Messages can updated
be timed – Ads lack
– Easy to credibility among
measure many consumers
effectiveness
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  Pop-up ads

 Buttons  Email
 Sponsorships – permission
marketing
 Search engine
– spamming
and directory
listings  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 Terms_1

 Impressions - the number of people who will

be exposed to a message placed in one or
more media vehicles
 Reach - the percentage of the target market
exposed to the media vehicle
 Frequency - the average number of times a
person in the target group will be exposed to
the vehicle
Media Scheduling Terms_2

 Gross Rating Points (GRPs) - reach *

frequency
 Cost per Thousand (CPM) - compares the
relative cost effectiveness of different
media vehicles that have different
exposure rates; it reflects the cost to
deliver a message to 1,000 people
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
 Evaluating Advertising

 Post testing means conducting research

on consumers’ responses to advertising
messages they have seen or heard
– unaided recall
– aided recall
– attitudinal measures
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
 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