Introduction.

Companies must do more than simply create customer value. They must also engage target customers
and clearly and persuasively communicate that value to them. Here are two marketing communicating
tools that accompanied with marketing process bring value to customers.

What is advertising?
Any paid form of nonpersonal presentation and promotion of ideas, goods or services by an identified
sponsor.

 Advertising is a good way to engage, inform, and persuade, whether the purpose is to sell Cola
world-wide, help smokers kick the habit, or educate people in developing countries on how to
lead healthier lives.

Marketing management must make four important decisions whrn developing an advertising program:

- Setting advertising objectives

- Setting the advertising budget
- Developing advertising strategy (message decisions and media decisions)
- Evaluating advertising effectiveness

Setting advertising objects

A specific communication task to be accomplished with a specific target audience during a period of
time

 The overall advertising objective is to help engage customer and build customer relationships by
communicating customer value

Advertising objectives can be classified by their primary purpose:

- Inform
- Persuade
- Remind
Informative advertising: is used heavily when introducing a new product category

Or Using facts to highlight the benefits of a product’s features instead of appealing to customers’
emotions

e.g:
Persuasive advertising: a method of advertising that attempts to convince a consumer to purchase a
product or service by appealing to their needs and desires -> Company’s objective is to build selective
demand (important)
  But some persuasive ad has become comparative advertising.
- Comparative advertising is an ad that directly or indirectly compares its brand with one or more
other brands -> it often creates controversy

E.g:
Reminder advertising: is important for mature products – it helps to maintain customer relationships
and keep consumers thinking about the products

e.g:
Setting the Advertising budget
 In chapter 14 we mentioned about four commonly used methods for setting promotion budgets
and now we discuss some specific factors that should be considered when setting the
advertising budget

A brand’s advertising budget often depends on its stage in the product life cycle.

Source: TWI Gobal

For example, new products typically need relatively large advertising budgets to build awareness and to
gain consumer trial

In contrast, mature brands usually require lower budgets as a ratio to sales.

Undifferentiated brands: those that closely resemble other brands in their product class (soft drinks,
laundry detergents) - may require heavy advertising to set them apart. When the product differs greatly
from those of competitors, advertising can be used to point out the differences to consumers.
 - No matter what method is used, setting the advertising budget is no easy task
 Market share:
As a result of such thinking, advertising is one of the easiest budget items to cut when economic
times get tough. In the long run, however, slashing ad spending may cause long-term damage to
a brand’s image and market share. In fact, companies that can maintain or even increase their
advertising spending while competitors are decreasing theirs can gain competitive advantage.

Developing Advertising Strategy

Advertising strategy: The strategy by which the company accomplishes its advertising objectives

It consists of two major elements:

- creating advertising messages

No matter how big the budget, advertising can succeed only if it engages consumers and
communicates well

Good advertising messages and content are especially important in today’s costly and cluttered
advertising environment.

As we said before, Undifferentiated brands demanded company’s marketing strategy must distinct
from others.

It used to be that television viewers were pretty much a captive audience for advertisers. But
today’s digital wizardry has given viewers a rich new set of information and entertainment options—
the internet, video streaming, social and mobile media, tablets and smartphones, and others.

Unless ads provide content that is engaging, useful, or entertaining, many consumers will simply
ignore or skip them

Merging Advertising and Entertainment: This merging of advertising and entertainment takes one
of two forms: advertainment or brand integrations

- The aim of advertainment is to make ads and brand content themselves so entertaining or so
useful that people want to watch them
- Advertisers are also creating content forms that look less like ads and more like short films or
shows. A range of brand messaging platforms—from webisodes and blogs to online videos and
social media posts—now blur the line between ads and other consumer content
E.g : TVC của kinh đô

Message and Content Strategy: The first step in creating effective advertising content is to plan a
message strategy—the general message that will be communicated to consumers

developing an effective message strategy begins with identifying customer benefits that can be used
as advertising appeals

Message strategy statements tend to be plain, straightforward outlines of benefits and positioning
points that the advertiser wants to stress. The advertiser must next develop a compelling creative
 concept—or big idea—that will bring the message strategy to life in a distinctive and memorable
way. At this stage, simple message ideas become great ad campaigns

3 characteristics of advertising appeals:

Meaningful

Believable

Distinctive

Message Execution:

Slice of life, Lifestyle, Fantasy, Mood or image, Musical, Personality symbol, Technical expertise,
Scientific evidence, Testimonial evidence or endorsement

Tone, words and format

Converse: Letting Customers Co-author the Brand Story

- selecting advertising media: The major steps in advertising media selection are (1) determining
reach, frequency, impact, and engagement; (2) choosing among major media types; (3) selecting
specific media vehicles; and (4) choosing media timing

Determining Reach, Frequency, Impact, and Engagement

 Reach is a measure of the percentage of people in the target market who are exposed to an ad
campaign during a given period of time
 Frequency is a measure of how many times the average person in the target market is exposed
to a message.
 But advertisers want to do more than just reach a given number of consumers a specific number
of times. The advertiser also must determine the desired media imapact—the qualitative value
of message exposure through a given medium.

- Choosing among Major Media Types: the major media types are television; digital, mobile, and
social media; newspapers; direct mail; magazines; radio; and outdoorr. Each medium has its
advantages and its limitations.
 As discussed earlier in the chapter, traditional mass media still make up a majority of today’s
media mixes.
 Alternative media:

- Selecting Specific Media Vehicles: Media planners must also choose the best media vehicles—
specific media within each general media type
 Media planners must also consider the costs of producing ads for different media.
  In selecting specific media vehicles, media planners must balance media costs against several
media effectiveness factors.
1. the planner should evaluate the media vehicle’s audience quality
2. the media planner should consider audience engagement
3. the planner should assess the vehicle’s editorial quality.

- Deciding on Media Timing: An advertiser must also decide how to schedule the advertising over
time.
 The firm can vary its advertising to follow the seasonal pattern, oppose the seasonal pattern, or
be the same all year
 Today’s online and social media let advertisers create ads that respond to events in real time.
1. Continuity: means scheduling ads evenly within a given period
2. Pulsing: means scheduling ads enevenly over a given time period

Evaluating Advertising Effectiveness and the Return on Advertising

Investment
- Measuring advertising effectiveness and the return on advertising investment has become a hot
issue for most companies. (Top management at many companies is asking marketing managers,
“How do we know that we’re spending the right amount on advertising?” and “What return are
we getting on our advertising investment?”)

Advertisers should regularly evaluate two types of advertising results: the communication effects and
the sales and profit effects

- Measuring the communication effects of an ad or ad campaign tells whether the ads and media
are communicating the ad message well (before or after they are run). Pre- and post-
evaluations of communication effects can be made for entire advertising campaigns as well
- However, sales and profit effects of advertising and other content are often much harder to
measure. Sales and profits are affected by many factors other than advertising—such as
product features, price, and availability.
1. One way to measure the sales and profit effects of advertising is to compare past sales and
profits with past advertising expenditures.
2. Through experiments.

Organizing Advertising Consideration