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    15 Advertising

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    Anupam Narkhede
    Advertising provides product information to consumers and motivates them to purchase products. It cannot directly create sales but can enhance consumer responses. Effective advertising requires determining objectives, budgets, messages, media, and timing. The budget should be based on the advertising objective and how it relates to other marketing mix elements. Results must be measured before and after campaigns through methods like aided and unaided recall, as well as measuring desired behaviors like increased sales.

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    15 Advertising

    Uploaded by

    Anupam Narkhede
    6 views11 pages
    Advertising provides product information to consumers and motivates them to purchase products. It cannot directly create sales but can enhance consumer responses. Effective advertising requires determining objectives, budgets, messages, media, and timing. The budget should be based on the advertising objective and how it relates to other marketing mix elements. Results must be measured before and after campaigns through methods like aided and unaided recall, as well as measuring desired behaviors like increased sales.

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    15 Advertising (1)

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    Advertising provides product information to consumers and motivates them to purchase products. It cannot directly create sales but can enhance consumer responses. Effective advertising requires determining objectives, budgets, messages, media, and timing. The budget should be based on the advertising objective and how it relates to other marketing mix elements. Results must be measured before and after campaigns through methods like aided and unaided recall, as well as measuring desired behaviors like increased sales.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    6 views11 pages

    15 Advertising

    Uploaded by

    Anupam Narkhede
    Advertising provides product information to consumers and motivates them to purchase products. It cannot directly create sales but can enhance consumer responses. Effective advertising requires determining objectives, budgets, messages, media, and timing. The budget should be based on the advertising objective and how it relates to other marketing mix elements. Results must be measured before and after campaigns through methods like aided and unaided recall, as well as measuring desired behaviors like increased sales.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 11

    Advertising

    Provides information

    Channels wants

    Supplies reasons to purchase

    Cannot create sales


    can enhance buyer response to organization and its offerings
    Advertising

    How much to budget?


    What message?
    What media?
    Timing?
    How to measure results?
    What is the objective?
    How does it relate to the rest of the mktg. mix?
    Advertising

    What is the ad supposed to do?

    To whom

    For which behavior or psychological factor?


    Increase awareness
    Increase sales
    Change attitudes
    Direct a behavior
    Advertising

    Budget
    “…All I can afford.”
    ridiculous but common
    ignores objective

    % of Sales
    adv. budget is a function of sales…?
    common in stable markets
    hopefully based on a sales forecast by somebody, somewhere,
    sometime…?
    Advertising

    Budget (cont.)
    Competitive Parity
    same as % of Sales but based on industry average

    Objective and Task


    define objective first
    decide how to accomplish
    which message, media,…..
    Coordinate with rest of marketing, promotion mix
    Advertising

    Objective and Task Budgeting


    Want 100k people to try product with 10% advertising effectiveness
    rate:
    100k/.10 = 1m people to get the message

    If exposure rate is 12.5%:


    1M/.125 = 8m exposures

    If ad costs $6 per 1,000 exposures:


    (8m x $6)/1,000 = $48k advertising budget
    Sales Response Model

    Saturation Effect

    Sales

    Adv Expenditures
    Threshold Effect
    Advertising

    Message Development Over Time

    Product
    Image
    Positioning
    Comparative
    Focused
    Advertising

    Measuring Results
    Based on objective
    Must be measured before and after ad
    Pretest and Posttest
    Aided Recall
    Inflates recall but approximates actual shopping experience
    Unaided Recall
    Measures true recall but depends on memory
    Advertising

    Measuring Results (cont.)


    Psychometric Testing
    Galvanic skin response (lie detector)
    Pupilometers

    Desired Behavior
    Did sales increase?
    Did floor traffic increase?
    Did web “hits” increase?
    Advertising Controversy

    Creates an obsession with material possessions


    overemphasizes symbolism and status

    Is inherently dishonest

    Raises prices

    Creates artificial expectations

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