Advertising Outline

 What is Advertising
 What Advertising Do
 Effective Advertising
 Major Advertising Decisions
 Steps in Developing Effective Communication
 Advertising Tools
 What is Advertising?

Advertising is Any Paid Form of

Nonpersonal Presentation and
Promotion of Ideas, Goods, or
Services by an Identified Sponsor.
 What Advertising Can Do
► Remind customers and prospects about the
benefits of your product or service
► Establish and maintain your distinct identity
► Enhance your reputation
► Encourage existing customers to buy more of what
you sell
► Attract new customers
► Slowly build sales to boost your bottom line
► Promote your business to customers, investors
and others
 What Advertising Can’t Do
► Create an instant customer base
► Cause an immediate sharp increase in sales
► Solve cash flow or profit problems
► Substitute for poor or indifferent customer
service
► Sell useless or unwanted products or
services
 Effective Advertising
► AIDA

► Right Image

► Successful Themes
 AIDA
► Attention
► Interest
► Desire
► Action
 Right Image
► 1- White Space
► 2- Typeface
► 3- Illustration
► 4- Price
► 5- Quality of Paper
► 6- Color
► 7- Size/Shape/Fold
 Successful Themes
► 1- Solve a Problem

► 2- Here is the News

► 3- Use Humor

► 4- Prove that it Work

 Major Advertising Decisions
Message Decisions
•Message Strategy
•Message Execution

Objectives Setting Setting the

•Communication Budget Campaign Evaluation
objectives •Communication Impact
•Sales Objectives •Sales Impact

Media Decisions
•Reach, Frequency, Impact
•Major Media Types
•Specific Media Vehicles
•Media Timing
 Setting Advertising Objectives

Informative Advertising
Inform Consumers or
Persuasive Advertising
Build Primary Demand Build Selective Demand

Reminder Advertising
Keeps Consumers Thinking
About a Product
 Setting the Advertising Budget

► Company specific factors to be

considered when setting the
advertising budget:
 Stage in the product life cycle,
 Competition and clutter,
 Market share,
 Advertising frequency,
 Product differentiation.
 Setting the Advertising Budget

► General factors to be considered when

setting the advertising budget:
 Strategic versus tactical budgets,
 Overall promotional budget,
 Consistency,
 Opportunities to stretch the budget,
 The final budget.
 Message Decisions

Message
Generation

Message Evaluation
&
Selection

Message Execution
 Media Decisions
Step 1. Decide on Reach, Frequency,
and Impact

Step 2. Choosing Among Major Media Types

Media Habits of Target Consumers,
Nature of the Product, Types of Message, Cost

Step 3. Selecting Specific Media Vehicles

Specific Media Within a Given Type, i.e. Magazines.
Must Balance Media Cost Against Media Factors:
Audience Quality & Attention, Editorial Quality

Step 4. Deciding on Media Timing

Scheduling of Advertising Over the Course of a Year
Pattern of Ads: Continuity or Pulsing
 Campaign Evaluation

Measuring Measuring
the the
Communication Effect Sales Effect
 Steps in Developing Effective
Communication
Step 1. Identifying the Target Audience

Step 2. Determining the Communication Objectives

Buyer Readiness Stages

Awareness
Knowledge

Liking

Preference

Conviction
Purchase
Purchase
 Steps in Developing Effective
Communication
Step 3. Designing a Message

Message Content
Rational Appeals
Emotional Appeals Message Structure
Moral Appeals Draw Conclusions
Argument Type Message Format
Argument Order Headline, Illustration,
Copy, & Color
Body Language
 Steps in Developing Effective
Communication

Step 4. Select the Communication Channels

Personal Communication Channels Non Personal Communication Channels

Face to Face, Telephone, Presentation Print, Broadcast and Display Media

Step 5. Selecting the Message Source

Step 6. Measure the Communication’s Results

Advertising Tools
► Newspaper
► Radio
► Television
► DirectMail
► Outdoor
► Internet
 Newspaper
Advantages
► Broad mkt coverage
► Immediate
► Short lead time
► Flexible ad size
► Visibility of product
► Color
► Use of coupons
► People believe what they
read!
Disadvantages
► Inconsistent reproduction
► One day life span
► Limited demographics
► “Lost in the Crowd”
► Lack of movement &
sound
 Radio
Advantages Disadvantages
► Demographic selection ► Restrictive message length
► High frequency ► Need for repetition
► Immediate ► Short recall factor
► Sound reinforcement ► Cluttered placement
► Quick flexibility
 Television

Advantages
► Use of sight, sound, motion,
& color
► Mass coverage
► Immediate
Disadvantages
► Demographic selection
► Short exposure
► Expensive production
► Expensive to air
► Cluttered placement
► Viewing time drops as
income increases
 Direct Mail

Advantages

► Demographic selection
► Unlimited message length
► Consistent reproduction
► Direct response by order or coupon
Direct Mail
Disadvantages

► Expensive
► Difficult to obtain “pure” mailing lists
► Long lead time
► Negative reaction to junk mail
Outdoor ►
Advantages
Reaches large audience
► Long-term exposure
► Color & graphics
► Forms include billboards,
posters, illuminated signs,
moving vehicle signs, bench ads

Disadvantages
► Limited message length
► Expensive to produce & place
► Difficult to obtain the best
locations
► Legal restrictions for use
 Reaching Consumers
How “best” to reach consumers
 Newspaper Insert 30.5%
 In-Store Display 22.1%
 In-Store Promotion 15.8%
 TV ad/promotion 2.8%
 In-Store Feature AD 2.7%
 Radio Advertising 0.2%
 Other 19.4%