Advertising fall07


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Advertising fall07

  1. 1. Advertising Strategy Week 8 Fall 2007Ganesh Iyer 1
  2. 2. Advertising Planning Process Brand Positioning Target Market Advertising Objectives Budget Decisions Creative Strategy Media Strategy Campaign EvaluationGanesh Iyer 2
  3. 3. 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 awarenessGanesh Iyer 3
  4. 4. Hierarchy of effects Communication Process Awareness Interest Liking, Preference Purchase, ActionGanesh Iyer 4
  5. 5. 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
  6. 6. Creative Strategy: Emotional vs. Rational Appeal Emotional = appeal to psychological, social or symbolic needs. “Pull at the consumer’s 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” » » Iyer 6
  7. 7. 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 informationGanesh Iyer 7
  8. 8. 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 – Attitude_product versus Attitude_ad = will the message be persuasive and will the product be taken seriously. » » » Fantasy » seen often in cosmetics advertising » Iyer 8
  9. 9. Types of Rational / Informational Appeal Technical Expertise or Scientific Evidence: (Crest…“Look ma no cavities”) Comparative: Product features vs. competition (Nike vs. Reebok) »  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
  10. 10. 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
  11. 11. Media Decisions Advertising Exposure  Gross Rating Points = 70(Reach) 4(Frequency) = 280 GRP’s  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 competitionGanesh Iyer 11
  12. 12. Message Good advertising creative strategy translates the brand’s 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
  13. 13.  Iyer 13