MODULE 6

Advertising Strategy

LEARNING OUTCOMES:

The following specific learning objectives are expected to be realized at the end of the session:

1. To understand what it Advertising Strategy

2. To know the Advertising purposes, elements and objectives.
3. To comprehend the different types and classifications of Advertising.
4. To know the stages of Advertising Cycle.
5. To understand the A.I.D.A.Model and Hierarchy of Effects Model

KEY POINTS

Advertising Strategy Adverting Types and Classifications

Advertising Purposes, Elements, and Objectives A.I.D.A. and Hierarchy of Effects Models

CORE CONTENT

Introduction

“Effective advertising influences behavior or thought patterns.”

By:
Diosdado Salvador Jr.
Former ASEAN President,
Johnson & Johnson

IN-TEXT ACTIVIES:

Advertising Strategy

Advertising is often referred to as a product PULL because it takes an indirect long-term

approach to gain customers.

Sales Promotions often referred to as the product PUSH because they resort to a direct shorter-
term objective of increasing volume.

Both advertising and sales promotions are designed to make prospective buyers aware of the
brand, create or change brand attitudes, and stimulate purchases intentions.

Advertising Purposes

Brand advertising – aims to stimulate demand for a particular brand.

Institutional advertising – aims to develop goodwill for a company or industry.

Classified advertising – aims to inform prospects regarding opportunities such as buy & sell, events &
employment.

1
PBON02B Principles of Business Operations 2
Promotional advertising – aims to inform prospects about promotional activities such as special sale.

Advocacy advertising – aims to convince audiences regarding a particular cause.

Advertising: Its Elements

Advertising is a form of communication

1. It pays for the use of the communications media

2. It is non-personal
3. It communicates facts & information.
4. It is openly persuasive & convincing in order to sell or secure favorable consideration.
5. It is a marketing function

Advertising Objectives

The advertising objectives must be relevant to the existing market situation. Since the marketing function
of advertising is to inform & persuade, advertising can be classified according to these two (2) functions:
1. TO INFORM target customers about:

* New Product * New Users

* Product Function * New Distribution
* Correct Usage * Price adjustment

2. TO PERSUADE target customers about:

* Brand Preference
* Brand Switching
* Urgency to Buy Now
* Action to be Taken (like phone-in inquiry)

A possible third function or “reminding” customers as adopted by some marketing practitioners &
educators can actually be incorporated with two stated functions through repetition of the advertising
campaign.

The acronym FMCGS stands for:

F-ast
M-oving
C-onsumer
G-oods
S-ervice
For example: detergents, soaps & soft drinks often options to reminder advertising.

Objectives must be S.M.A.R.T. The acronym means:

S-pecific
M-easurable
A-ttainable
R-ealistic
T-ime-bound

Other Advertising Objectives

1. Aims in the introduction of a new products to specific target markets.

2. Increase market share.

2
PBON02B Principles of Business Operations 2
 3. Assist in securing new dealers.
4. Make prospective customers more familiar with company‟s brands.
5. Make more buyers accessible to the company‟s salesmen.
6. Increase the middlemen‟s knowledge about the profitability of the company‟s products.

Types of Advertising

1. Product Advertising – product advertising is aimed at informing & stimulating market demand
for an advertised product brand or service.

a. Direct-action advertising – sellers are seeking immediate response to their advertisements

by using mail-back coupons for premiums or free samples.

b. Indirect-action advertising – is designed to stimulate demand over period of time. It is

intended to inform customers that the product exists & emphasizes its benefits.

2. Institutional Advertising is designed either to present information about the advertiser‟s

business or to create a good attitude, build goodwill towards an organization.

3. Primary and Selective Demand Advertising – designed to stimulate demand for a product in
general like “medical guides for maintenance of healthy teeth”. Types are:

a. Pioneering Advertising used when product is in introductory stage. Its objective is simply to
inform & not to persuade the market.

b. Selective Demand Advertising is competitive advertising. It is intended to persuade

the potential customers emphasizing particular benefits.

Classifications of Advertising

1. According to source or origin:

a. Advertisements by manufacturers.
b. Advertisements by resellers
c. Advertisements by service businesses
d. Advertisements of organizations or institutions
e. Advertisements by governmental units
f. Advertisements by individuals

2. According to Media use:

a. Print media – basis for payment is space measured per column centimeter. These are
advertisements in newspapers, magazines & journals

Example:
“Mababang Presyo” Supermarket in Bulletin Today, Sunday issue. Rate per column centimeter
on Sunday is Php 18.25. Advertisement measures ten (10) centimeters in width & thirteen (13)
centimeters in length.

To compute for the fee to be paid to the publisher:

Number of column centimeters
=Length in cm. x Width in cm.
=10 cm. x 13 cm.
=130 column centimeters
Advertising fee
=130 cl. Cm. x Php18.25/cl. cm.

3
PBON02B Principles of Business Operations 2
=Php2,372.50

b. Broadcast media – basis of payment is time measured per 30 seconds. These are
advertisements in t.v. & radio

Example:
Close-down toothpaste, in Channel X, Program ABC where advertising rate is Php18,500/30‟s.
Advertisement duration is 30 seconds, frequency is two spots in the same show.

To compute for the fee to be paid to T.V. producer:

=Php18,500/30‟s x 2 spots in the same show
=Php37,000 is the advertising fee.

c. Outdoor advertising – neon signs, streamers, billboards, posters panels, aerial signs.
Measured on the basis of space occupied, duration of occupancy.

d. Transit advertising – billboards/neon advertisements on public utility vehicles.

e. Field advertising – uses a vehicle which roams around a subdivision or places announcing a
new product through loud speaker.

f. Movie advertising – advertisements in theaters, important considerations for advertising fee is

seating capacity of the movie house & class.

g. Direct advertising – hand-outs, leaflets, catalogues, brochures, advertising a product or

service.

3. According to objective:

a. Promotional advertising – it mentions a brand of product or service intended to stimulate

demand.

b. Institutional advertising – it advertises an outlet‟s name without mentioning any brand,

intended to develop goodwill.

4. According to action desired:

a. Direct or immediate action advertising – these are promotional advertisements.

b. Indirect action advertising – these are institutional advertisement.

5. According to audience targeted:

a. Consumer advertising – advertisements of products in finished form for personal use by the
buyer.

b. Industrial advertising – advertisements targeting businessmen to buy products advertised for

use in their business operations, either for manufacturing or facilitating operations.

Stages in Advertising Cycle

1. Introductory Advertising – this is the stage of advertisement where product, service, idea or
institution is publicly launched. The objective of this stage is to develop consumer awareness

4
PBON02B Principles of Business Operations 2
 about the product advertised. It commonly uses these words in the headline: “New”,
“Introducing”. “Narito na”, etc.

2. Competitive Advertising – this aims to encourage the consumers to prefer the advertiser‟s
product or service against competitors products and services. This emphasizes a unique
selling proposition, features or benefits. Headline uses words such as “Better”, “Improved”,
“No. 1” etc.

3. Retentive Advertising – this stage attempts to develop consumer loyalty by reminding the
public about the product or service through repetitive advertisements. The advertising
message is generally brief and concise.

A.I.D.A. MODEL

The design and development of advertising follows the AIDA formula. The effectiveness of advertising
depends upon to what extent the advertising message is received and accepted by the target audience.
Research has identified that an advertisement to be effective has to:

Attract ATTENTION
Secure INTEREST
Build DESIRE for the product and finally
Obtain ACTION

Attention

The layout is the most important factor that directs attention to an advertisement. Typography and
colors used in the layout can rivet us. The size of the advertisement also compels us to get attracted to it.
Contrast by white space is a good attention-getter. Movement is a vital element for getting attention.
Movement can be physical or emotional.

Interest

Ad seen does not mean ad read. Mostly people see the illustrations and do not read the copy.
Here illustrations have to work hard. They should, together with headlines must provoke further reading.
The selection of the illustrations and its integration to life are thus very important. Even copy format is
important for interest creation.

Desire

The basic purpose of advertising is to create a desire for the product or service being advertised.
It is a function of appeals used for the motivation of people. Bright description or copy always helps.
Buying motives, physiological as well as psychological, make people purchase products.

Action

The logical end of the desire stimulated is to buy the product.

1. Products are associated with company.
2. The message is repeated.
3. Certain immediate action appeals are used.

Hierarchy of effects Model

Hierarchy of effects Model can be explained with the help of a pyramid. First the lower level
objectives such as awareness, knowledge or comprehension are accomplished. Subsequent

5
PBON02B Principles of Business Operations 2
objectives may focus on moving prospects to higher levels in the pyramid to elicit desired behavioral
responses such as associating feelings with the brand, trial, or regular use etc.

It is easier to accomplish ad objectives located at the base of the pyramid than the ones towards
the top. The percentage of prospective customers will decline as they move up the pyramid toward more
action oriented objectives, such as regular brand use.

Awareness – If most of the target audience is unaware of the object, the communicator‟s task is to build
awareness, perhaps just name recognition, with simple messages repeating the product name.
Consumers must become aware of the brand.

Knowledge/Comprehension – The target audience might have product awareness but not know much
more; hence this stage involves creating brand knowledge. This is where comprehension of the brand
name and what it stands for become important.

Liking – If target members know the product, how do they feel about it? If the audience looks
unfavorably towards the product to communicator has to find out why. If the unfavorable view is based on
real problems, a communication campaigns alone cannot do the job.

6
PBON02B Principles of Business Operations 2
Preference – The target audience might like the product but not prefer it to others. In this case, the
communicator must try to build consumer preference by promoting quality, value, performance and other
features.

Conviction – A target audience might prefer a particular product but not develop a conviction about
buying it. The communicator‟s job is to build conviction among the target audience.

Purchase – Finally, some members of the target audience might have conviction but not quite get around
to making the purchase. They may wait for more information or plan to act later. The communicator must
need these consumers to take the final step, perhaps by offering the product at a low price, offering a
premium, or letting consumers tried out.

DAGMAR

In 1961, Russel H. Colley wrote a book under the sponsorship of the Association of National
Advertisers called Defining Advertising Goals for Measured Advertising Results. The book
introduced what has become known as the DAGMAR approach to advertising planning and included a
precise method for selecting and quantifying goals and for using those goals to measure performance.

DAGMAR approach can be summarized as „Defining Advertising Goals‟. An advertising goal is a

specific communication task to be accomplished among a defined audience in a given period of time.

SESSION SUMMARY

This module discussed about the different strategies in advertising. A.I.D.A. and Hierarchy effects
Models are discussed to as well to determine consumer behavior, motivations and perceptions to
understand the purchase decisions. DAGMAR means Defining Advertising Goals for Measured
Advertising Results, having different strategies in adverting are assess to achieve its results.

REFERENCES

Refer to the references listed in the syllabus of the subject.

7
PBON02B Principles of Business Operations 2