Advertising Strategy

Session 7
Summer 2008

Ganesh Iyer
1
 Advertising Planning Process

Brand Positioning Target Market

Advertising Objectives

Budget Decisions

Creative Strategy Media Strategy

Campaign Evaluation
Ganesh Iyer
2
 Advertising Objectives

Create awareness for new products

Inform consumers
of product features and benefits
price changes
Important for building primary demand

Persuasion
Build brand preference or change buyer perceptions
especially important for building demand in competitive markets.

Reminder advertising: maintain top-of-mind awareness

Ganesh Iyer
3
 Hierarchy of effects
Communication Process

Awareness

Interest

Liking, Preference

Purchase, Action

Ganesh Iyer
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 Creative Strategy

Develop the USP unique selling proposition or the Creative

Hook

Unique Selling Proposition

Translates brand positioning into a compelling message.

Objective is Memorability

Ganesh Iyer
5
 Creative Strategy:
Emotional vs. Rational Appeal

Emotional = appeal to psychological, social or symbolic needs. Pull at the

consumers heartstrings

Rational = provide information about functional and utilitarian aspects of

the products.

Shift towards emotional execution strategy in the later part of the product
lifecycle
Intense competition and proliferation of substitutable products
(Michelin)
Critical to increase Product involvement
http://www.youtube.com/watch?v=sIkQRXkpwQI
http://www.youtube.com/watch?v=SdPLf3FoInE

Ganesh Iyer
6
 Taxonomy of Emotional Appeals

Fear appeal
can be an effective motivator but has the danger of alienating
consumers
Show the consumer how to avoid the problem.
Provide concrete supporting information

Ganesh Iyer
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 Taxonomy of Emotional Appeals

Humor
Memorability device.
Humor should not clutter the product benefits.
Execution detail: Show consumer how to avoid the problem.
Pre-test to check if consumer
i) recalls product benefit
ii) Attitude_product versus Attitude_ad = will the message be persuasive and will
the product be taken seriously.
http://www.youtube.com/watch?v=kVCGBohc20k&mode=related&search=
http://www.youtube.com/watch?v=f3mXaATLeRM
http://www.youtube.com/watch?v=zV-yGp4l8B8

Fantasy
seen often in cosmetics advertising
http://www.youtube.com/watch?v=r1g5qcKcVCM

Ganesh Iyer
8
 Types of Rational / Informational Appeal

Technical Expertise or Scientific Evidence: (CrestLook ma no

cavities)

Comparative: Product features vs. competition (Nike vs. Reebok)

http://www.youtube.com/watch?v=xhiyDQNmEjY

Advantages
High ability to get attention
Helps in competitive positioning

Disadvantages
Advertise the competition. Makes competition more salient.
Can use only if there is clear objective superiority for the advertised
attribute.

Ganesh Iyer
9
 Media Decisions

Define the target market.

Quantitative Measures
Reach: the percentage of people in the target market who are exposed
to the ad campaign during the defined time duration
70% of the target market during the first three months of the
campaign

Frequency: A measure of how many times an average individual in the

target market who have been reached .

Ganesh Iyer
10
 Media Decisions

Advertising Exposure
Gross Rating Points = 70(Reach) 4(Frequency) = 280 GRPs
1GRP = 1 exposure to 1% of the audience.

Qualitative Measures
Impact; is the qualitative aspect of the medium
Newsweek vs. The National Enquirer
Sports illustrated vs. Time for tennis racquets

Trade-off between reach and frequency

Pulsing vs. Continuity

Pulsing most critical for new products. Why?
Continuity needed when faced with intense competition
Ganesh Iyer
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 Message

Good advertising creative strategy translates the brands

positioning statement into a persuasive and memorable
message. A great creative will provide lasting impact even if
advertising budgets are constrained.

How you say it is as critical as what you say

Ganesh Iyer
12
 Analysis Framework

First mover advantages Company Analysis Perceptual mapping

Marketing Myopia
Competitor Customer Analysis
Analysis
Positioning Segmentation

Marketing Orientation
Marketing Strategy
Branding
Product
Pricing process Product Line Strategy
Pricing and innovation (ODI) Price (Cambridge)

Promotion
Place Going to market
Direct marketing
(Goodyear)
(Calyx)

Market
Ganesh Iyer
13