Advertising Campaign Management Part 3Jennifer Sundstrom-F.docx

Advertising Campaign Management
Part 3
Jennifer Sundstrom-Fitzgerald
1
Learning Objectives
Analyze advertising campaign parameters
Identify how a creative brief facilitates effective advertising
Describe the implications of advertising management in the
global arena
2
Advertising Campaign Parameters
Advertising goals
Media selection
Tagline
Consistency
Positioning
Campaign duration

Effective advertising campaigns require careful planning and
attention to specific parameters including Advertising goals,
media selection, tagline, consistency, positioning and campaign
duration. We will review each parameter beginning with goals.
3
Advertising Goals
A primary goal of advertising is to build brand awareness
among existing and new customers. The creative should inform
and persuade them to make purchases and build brand loyalty.
4
Build brand awareness
Inform, persuade, support marketing efforts
Encourage purchase decisions
Building Brand Awareness
Successful brands possess two characteristics. Top-of-mind are
brands a consumer mentions first when asked about brands in a
particular product category – these are brands in our Evoked
Set. Top choice is the brand within a product category that
consumers prefer the most. So top choice requires top-of-mind.
Brand equity, which is the level of brand strength perceived by

consumers, leads to top-of-mind and top choice brands.
This is also applicable on the B2B side when business people
are faced with modified rebuy situations. A common dilemma I
had was for every Fox Graduation Ceremony, there are three per
year, and the need for graduation program booklets. There was a
printer who I always wanted to hire because I enjoyed working
with them, they always had fair prices and delivered high-
quality programs in a timely manner. However, due to non-
profit regulations, I had to bid the job to at least three vendors.
So my top-of-mind, first choice brand was always included but I
had to add two other vendors as well. Tell story about Bill
DeVece and misspelled student names and how wonderful he
was in fixing these issues.
5
Brand image begins with awareness
Consumers recognize the brand
Brand equity leads to top-of-mind and top choice
B2B important in modified rebuy situations
Building Brand Awareness
Successful brands possess:
Top-of-mind
Top choice
The 10 Most Valuable Brands in the World per 2018 study

Coca Cola brand is a good example of a brand with these
characteristics. Here is a recent list of a top 10 most valuable
and recognized list of global brands. (click link)
6
Goal to Persuade
Dare to be Devoted Campaign
Every Kiss Begins with Kay Campaign
Another common goal of advertising is to persuade consumers
that a particular brand is superior to others and should be their
top choice. Both of these brands, owned by the same parent
company (Signet), do extensive advertising, but only Kay
Jewelers has successfully used the same slogan, “Every Kiss
Begins with Kay” since 1985. Its sibling brand, Jared Jewelers,
has struggled over the years to condition and persuade
consumers with its “He went to Jared” slogan used for a few
years and with its current campaign and slogan “Dare to be
Devoted” that launched in 2018. Here are ads from both brands.
BTW, Zales, Kay and Jared are owned by the same company and
suffered low sales in the past year. Only Kay is holding onto
“top of mind/top choice” when it comes to mall-based jewelry
stores.
Source: https://www.jckonline.com/editorial-article/signet-
drops-he-went-to-jared/
Source: http://fortune.com/2019/01/17/signet-zales-kay-holiday-
sales/
Courtesy of: https://www.westfield.com/montgomery/stores/all-

stores/kay-jewelers/6495
7
Effective Slogans or Taglines
Must haves:
Key phrase “Demand Rand”
Memorable
Unique
Taglines are connected with brands and sometimes are better
known than a brand’s logo. They should be memorable and
convey something that is unique and should be consistent across
all media platforms. The Demand Rand for Rand Spear Accident
Attorney’s in Philadelphia drives me nuts but from a marketing
perspective, they are very effective in achieving all three of
these components.
Source: https://randspear.com/video_category/featured/
8
Media Selection
One of the challenging tasks of advertising management is to
select the media that will be used. In order to determine the
correct media combination or media mix such as a combo of
digital, TV and outdoor advertising, is marketers must
understand the media habits of their target market and then
match those habits with the audience characteristics of each
media vehicle. This process is used in business-to-business

media as well as in consumer media. Because of the importance
of selecting the “perfect” media mix, media planners are
brought in during the early part of the IMC Planning Process
rather than at the end.
9
Media-usage habits of target market must be understood
Audience characteristics and media vehicle type “must match”
B2C and B2B media selection is similar
Media planners involved early in ”IMC Planning Process”…and
not later
Consistency
Advertising must transfer to long-term memory
Visual consistency key across media vehicles
Repetition enhances ad recall and brand recall
Consistency is key. Repeatedly seeing a specific visual image,
headline, copy, or tagline helps embed a brand into a person’s
long-term memory. Repetition enhances both ad recall as well
as brand recall.
10

Consistency
Variability theory asserts:
Seeing an ad in different environments during a specific time
period will:
Allow varied content but integration across vehicles i.e.
website, billboard, digital ad, radio, etc.
A component of consistency is “The Variability theory” which
states that seeing an advertisement in different environments
enhances recall and recognition. Seeing an ad on television and
then in a magazine or billboard enhances recall more than
seeing multiple ads within the same medium. Wawa is a brand
that understands consistency and variability quite well –
especially around its Hoagie Fest promotional periods.
11
Campaign Duration
The goal of an ad campaign is to embed the brand and the
message into a person’s long-term memory. If the campaign is
too short, it impedes retention. If the campaign is too long, it
can become stale and consumers will ignore the message. It is
also possible the campaign can create negative feelings from
hearing it too much. For most campaigns, about 6 months is
effective. But, there are many exceptions. Some campaigns last
for years with only minor adjustments.
12

Goal to embed in long-term memory
Too short impedes retention
Too long can make it stale
Typical length is 6 months but varies
The Creative Brief
Objective
Target audience
Message theme
Support
Constraints
The last step in advertising management is writing a creative
brief. Most contain these five elements: the objective of the
campaign, the target audience, the message theme, any support
that can be used, and any constraints. The creative brief is
prepared in collaboration b/w members of the agency and client
company and is essentially the creative road map both the
agency team and client team follow to ensure everyone stays
consistent with campaign deliverables and outcomes.
13
Objective to Persuade
Courtesy of: Pearson Education, Inc.

The first component of the creative brief is the objective of the
campaign. The objective for this advertisement is to persuade to
choose Mastercard to enhance their everyday lives and embrace
those priceless moments.
14
Target Audience
Next comes a thorough description of the campaign’s target
audience. This is critical and should include information on
demo, geo, pschyog and behavioral characteristics. The target
market for Consumer Cellular is primarily Baby Boomers.
15
Message Theme
Unique selling point
“Left brain” advertisement
“Right brain” advertisement
The message theme should be the unique selling point the client
wants its target audience to remember. When considering
message themes, it helps to think about the difference between
left brain and right brain messages. However, most reputable
industry and academic sources state a combination of both is
best – where one slightly dominates the other – given your
target audience.
16

“Left-brain” Advertisement
Logical, rational side of brain
Manages numbers, letters, words, and concepts
“Cognitive” attitude component used often
Use of rational appeals work best
The left side of the brain is logical and where people manage
numbers, letters, words, and concepts. Left brain advertising
focuses on rational appeals that require thought and the
cognitive component of attitude is used most often. Conative is
also used at times especially with time-sensitive/urgent appeals
like QVC’s “order now, only 30 left in inventory – get for for
$19.99 – was $39.99.
17
“Right-brain” Advertisement
Emotional, creative side
Abstract ideas, images, feelings
Use emotional appeals
Affective component of attitude used often
The right side of the brain is where the creativity and emotions
lie. It manages abstract ideas, images, and feelings. So right
brain advertising should use an emotional appeal and the
affective component of attitude is used often. Depending on the
type of message, a conative component of attitude can be used
effectively as well: An example is “Invest in your retirement
now so you don’t have to worry later or burden loved ones you
leave behind.”

18
Ranking and Support Claims
Ads will often provide support for their product. It is the
responsibility of the client to provide any support that might be
used in an advertising campaign. If an automobile was
designated as Motor Trend’s car of the year, that is valuable
support that can be included to support brand image advertising.
In this ad, St. Francis Medical Center received five different
awards for being the best.
19
Constraints
Legal and mandatory restrictions
Corporate restrictions
Disclaimers
Constraints are things advertising can’t say or do, or things that
must be included in ads. For some products, there are legal and
mandatory restrictions that must be included. For drugs,
companies must tell consumers about all of the possible side
effects. For tobacco products there must be a warning from the
Surgeon General. Companies may have other constraints, such
as the logo must appear in all ads, or the logo must be in a
specific color or shape. Disclaimers or warranty statements may
also be included in ads. Most of the constraints are either legal
requirements or company-imposed requirements to protect from
lawsuits.

20
International Implications
Preplanning research varies
Process of agency selection
Understanding of languages and cultures
Media selection varies per country and culture
Banned: 10 popular social networks and websites that are (or
were) blocked in other countries
Approximately 62% of advertising budgets are spent outside of
the United States. For example, 83.5% of Coca-Cola’s
advertising budget is spent outside of the United States and
74.9% of the company’s income is generated outside the U.S.
To the end, Coca Cola marketers realize they way they manage
advertising campaign development internationally is critically
important to their bottom line.
Marketers must understand the process of selecting an agency
and the preparation needed for an international advertising
campaign. When developing global ad campaigns, you have to
pay close attention to language and culture differences. Simply
translating to another language is not sufficient. Media
selection also varies in other countries. The mix that is used in
the U.S. is not the same as it would be in Japan, Peru, Spain, or
Germany.
https://www.digitalinformationworld.com/2018/10/popular-
social-media-sites-that-were-or-are-blocked-in-other-
countries.html#
21

Learning Objectives
Analyze advertising campaign parameters
Identify how a creative brief facilitates effective advertising
Describe the implications of advertising management in the
global arena
22
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Part 2

1
Learning Objectives
Identify when a company should employ an external advertising
agency rather than completing the work in-house
Describe how companies choose advertising agencies
Analyze the different types of advertising agencies
Play “Brownstein Pearson Video” before Part 2…
2
Creating and Managing Campaigns
Two main considerations:
Should the work be done in-house?
Should we hire an outside agency?
Companies have to decide whether they will perform the
advertising work in-house or obtain an outside advertising
agency.
3
Benefits of an in-house team:
Lower costs
Consistent brand message
Better understanding of product and mission
An in-house creative team normally keeps costs lower. It is
easier to ensure a consistent brand message across campaigns.

An In-house team has a better understanding of the product
portfolio and the mission and vision of the company b/c they are
“Live It” everyday.
4
Benefits of an in-house team:
Faster ad production
Work closely with CEO
Lower turnover rate in the creative team
Other benefits involve the in-house team working closer with
the CEO. This helps move the production process along much
faster and there is usually a lower turnover rate within the in-
house creative team. This model worked well at TFI. We also
worked with Red Tettemer on large scale launches like
“Titanic” and purchased media directly and via Harmelin
Media.
5
Crowd-Sourcing Done “In-House”
Ideas come from consumers
Generates Buzz/WOM
Outsource final creative is often necessary
Overall cost not lower
The use of “Crowdsourcing” is a recent alternative to choosing
an advertising agency. Crowdsourcing involves seeking ideas
from current customers or the general public. One company that

has successfully used crowdsourcing is “Lays” and its “Do Us a
Flavor” campaign. For the past few years. Lay’s runs contests
for “recipe and advertising Ideas” and prompts consumers to
post ideas on their website. Consumers are then automatically
entered into a contest where various prizes are given.
Crowdsourcing content for a website or ideas for an IMC
campaign is often very effective however, it isn’t always cost-
effective. Those “ideas” still have to be professionally
researched, produced and launched which normally requires the
assistance of an outside agency.
Therefore, the biggest benefit of crowdsourcing is garnering
content from actual customers rather than a brand trying to
figure out ideas for fresh web content, advertising themes, etc.
on their own.
Lays source: https://digit.hbs.org/submission/crowdsourcing-
your-next-chip-flavor-lays-do-us-a-flavor-campaign/
6
Types of External Advertising Agencies
Boutique to full-service agency examples:
Advertising Design and Implementation
Market Research
Media Planning and Buying
Direct Response Marketing
Advertising agencies come in all shapes and sizes. They range
from small boutiques that offer only one type of service or…
full-service agencies that offer a complete spectrum of services.
We’ll first look at Boutique agency examples.
7
Types of External Advertising Agencies

Boutique to full-service agency examples:
Consumer and trade promotion specialists
Online and digital agencies
Social media agencies
Public relations agencies
Boutique agencies are highly specialized and normally provide
expertise in one area - examples include what you see here as
well as ethnic marketing, sports marketing, marketing research
and media planning.
8
Full-Service Agencies
Advice on how to develop target markets
Specialized services for business markets
Company image and theme guidance
Example: Wieden+Kennedy & Old Spice
Full-service agencies provide a wide array of services for
clients, everything from marketing research to strategy
development to ad design and launch preparation. Most provide
guidance on business markets as well as consumer markets.
They also help with brand image challenges for mid to large
companies – like our examples with McCann Erickson and
MasterCard, Leo Burnett and McDonald’s and Weiden and
Kennedy and Nike and Old Spice. Click link for WK.com
9
Full-Service Agencies
Services can include:
Target market research and development
Logo and tagline design

Advertising management planning
Media planning and purchasing
Full-service agencies can offer advice and guidance on
developing target markets, a brand’s image, logo and tagline
development. Media planning and buying is also done with a
full-service agency, or one of its subsidiaries. When I worked as
a brand manager at TAG Heuer, our full service ad agency was
Saatchi and Saatchi and they took care of everything I just
mentioned except for Public Relations…we contracted with
Nike Communications based in NYC – this boutique agency was
responsible for TAG Heuer’s celebrity endorsers, corporate
partners (BMW and SGK were common) and Destination
Sponsorships (Vail and Beaver Creek Resort in Colorado.)
10
Choosing an Agency
Set goals
Select process and criteria
Screen initial list of applicants
Reduce list to two or three viable agencies
Request creative pitch
Choosing an agency requires time and effort. Companies who
shortcut the process often end up choosing the wrong agency.
The first step is to select goals. Goal setting should occur
before contacting any agencies. Doing so will prevent any
biases towards a particular agency. It will help the company
understand what it wants from an agency and where the
company wants to go.
Then the company should decide on a process and criteria
before contacting any agencies. Once proposals have been

received, the list can be narrowed down to two or three viable
agencies. A creative pitch is then requested from each of the
agencies to determine the best choice.
11
Evaluation Criteria
Size
Relevant experience
Conflicts of interest
Creative reputation and capabilities
Again, prior to talking to agencies, the client company should
determine its evaluation criteria including:
The size of the agency should be aligned with the size of the
client company – When Fox School worked with Harmelin
Media it did not get good customer service; Our account was
too small. Now that Temple U contracts with Harmelin,
customer service, pricing and quality of media plans have
improved dramatically.
The agency should have experience in the industry, but not be
represent a direct competitor. This would be a conflict of
interest. When I was at TAG Heuer, we were on the only luxury
timepiece brand contracted with Saatchi and Saatchi.
The creative reputation and capabilities should be considered
since the primary role of the agency is to generate creative
ideas.
12
Evaluation Criteria

Production capabilities
Media purchasing capabilities
Other services available
Client retention rates
Personal chemistry
Here is additional evaluation criteria that should be vetted by
the client or brand:
The production (example: do they film TV and digital ads on
site) and media purchasing capabilities are not essential. Some
agencies do this, while others contract out to boutique shops.
You should look at client retention rates to ensure the agency
has a good reputation in the industry.
Personal chemistry is important because individuals from the
two companies work closely together – very often on a daily
basis. Example, When I worked at TAG Heuer, I was in contact
with my counterpart at Saatchi and Saatchi several times per
day.
13
Budget Allocation Decisions
Amount of Advertising Budget is a major consideration when
choosing an Agency:
Cost Distribution Rule: 75 – 15 – 10
75%: Media buys
15%: Creative work (agency)
10%: Ad production
Costs are a major consideration in selecting an outside agency.

When looking at the total cost of an advertising campaign, The
GENERAL rule to follow is: 75% of the money should be spent
on media buys, 15% on creative work by the agency, and 10%
on production of the ads. But of course, this does depend on the
industry and brand. TAG Heuer followed this rule as did Estee
Lauder but brands like Tesla follow different guidelines.
14
The Creative Pitch
2 to 3 agency finalists
Formal “free” presentation
Specific problem/situation
Expensive for agencies
Once the agency list has been narrowed down to two or three
finalists, it is time to ask for a creative pitch. Agencies are
given a specific problem to address. Creative pitches are
expensive for agencies, so companies need to be serious about
an agency when requesting a pitch. From the creative pitches,
the company should select the agency that offers the best plan
and the one that is the best fit. Talk about Fox pitch to Red
Tettemer, Brownstein and 160/90.
15
Key Advertising Personnel
Client side “Rolex”:
CEO/CMO/CIO
VPs of marketing, new product development, and information
technology
Brand managers
Assistants and coordinators

There are key individuals on both the client side and agency
side we need to be familiar with…
The CEO, CMO and CIO and VPs of Marketing, New Product
Developers and the IT team will be involved in the beginning
and sporadically throughout the length of the contract. The
Brand Managers and his/her assistants and coordinators will be
the main liaisons and have daily contact with the agency team.
They are also responsible for updating senior staff with
important developments and needed approvals. Because of the
increasing investment in digital marketing efforts, members of
the IT team, specifically the CIO and Web Master, will also be
an integral part of the client team.
16
Key Advertising Personnel
Agency side “Rolex”:
President
Business manager
Creative director
Account executive
Other managers/planners
On the agency side, the account executive is the main liaison
between the company and the agency and represents the client
within the agency. The president and business manager are
involved during the early phase of the relationship and then on a
sporadic level to assist in overall planning. Their main role is to
see the total picture. The creative director is responsible for the
creative aspect of the campaign and works with the agency’s
creative staff. Other managers and planners handle production
and/or media scheduling and assist with getting approvals from

senior staff.
17
Top Advertising Agencies in the World
Examples:
Omnicom Group, New York City - $15.3 billion
Publicis Groupe, Paris - $9.6 billion
Interpublic Group, New York City - $7.5 billion
Dentsu, Tokyo - $6.0 billion
Source: https://co.agencyspotter.com/50-largest-marketing-
companies-in-the-world/
18
Learning Objectives
Identify when a company should employ an external advertising
agency rather than completing the work in-house
Describe how companies choose advertising agencies
Analyze the different types of advertising agencies
19
20

Part 1
1
Learning Objectives
Identify advertising theories important to the process of
advertising campaign management
Analyze the relationship of advertising expenditures to
advertising effectiveness
2
Advertising Theory
Theoretical approaches serve as the foundation:
Hierarchy of Effects Model
Means-End Theory
The Hierarchy of Effects Model and Means-End Theory are the
two main theories we will review today. Both will drive
decisions in terms of the types of visuals and messaging used in
the final creative.

3
Awareness
Knowledge
Liking
Preference
Conviction
Actual purchase
The Hierarchy of Effects model is used by marketers to clarify
the objectives of an advertising campaign through six steps
consumers and businesses move through when making a
purchase.
4
Steps are sequential
Consumers spend time at each step
Brand loyalty involves all six steps
Similar to attitude formation
The steps are sequential, although some experts question if they
are really sequential due to purchase decisions being prompted
by impulse or incentives such as coupons, discounts and free
trials.
But, the basic model says they are sequential and that
consumers spend some time at each step.
For instance, before a consumer can like a brand, they first must

be aware of it and develop some knowledge of it. To develop
brand loyalty, consumers normally go through all six steps
which is similar to attitude formation and the cognitive-
affective-conative sequence.
5
Attitude Formation - 3 Components:
Cognitive: awareness, knowledge
Affective: liking, preference, conviction
Conative: actual purchase
Paragard Birth Control
Marketers must help consumers shape a positive attitude for a
specific brand – they do this by using visual and messaging cues
to influence attitude formation about a brand, product, service,
etc.
Awareness and knowledge which comprise the cognitive
component of attitude.
Liking, preference, and conviction (or the perception that one
brand is superior to competitors) comprise the affective
component.
The conative component of attitude is what ultimately drives the
actual purchase.
Use Swiffer launch to demonstrate and show Paragard launch
and ask them their opinion if the brand was effective in shaping
attitude.
6
Means-End Theory
The way the advertising message is delivered leads to an end-
state, or personal value achievement – or a specific “means to

an end”
Product attributes lead to consumer benefits, which in turn
connect to personal values
The second theory is the means-end theory also known as the
means-end chain
The model suggests that a specific type of message and product
positioning will help consumers find a solution to a particular
problem – which in turn connects to a personal achievement.
Here are some common themes used in the creative – or the
visual and messaging you see in ads. (Next Slide)
7
Means-End Theory
Common themes used in creative:
Comfortable life and security
Equality and self-respect
Excitement and happiness
I want you to begin to pay closer attention to the advertisements
you see on a daily basis. You will recognize many of the themes
you see here. Discuss Colonial Penn Life Insurance and
leveraging comfort and security with older Baby Boomers. (Go
to next slide for final three examples)…
8

Means-End Theory
Common themes used in creative:
Inner peace and social acceptance
Mature love and sense of belonging
Personal accomplishment and wisdom
Strayer University – Never Stop Growing
Here are the remaining common themes under “Means-End
Theory”; Show ad from Strayer University with Dana Elaine
Owens AKA Queen Latifah.
9
Means-End Theory
This specific message supports that milk has health benefits for
mother and baby’s bone development.
We both need Calcium
DRINK MILK
The means-end chain should prompt the consumer to believe
that using the product will help achieve a personal value. In this
case, good health for both mom and baby.
10
Means-End Theory
Courtesy of: http://graphicdesignjunction.com/2012/09/50-
fresh-examples-of-advertising-posters/

This is a B2B/Trade Ad example
Means-End Theory message: “Don’t get frustrated with leaking
valves. Trust Fluid Controls Inc to be there 24/7.”
Notice heavy emphasis on visuals versus words
Here are two B2B or “trade advertising” ad examples that
utilize the Means-End Theory. The first is from a valve supplier
targeting power supply companies and the second is from a
transit/Outdoor advertising supplier – Many business schools,
like Fox, advertise on bus shelters in zip codes that match up
with their target demographic like Center City Philadelphia and
Temple’s Main Campus.
Image sources:
http://graphicdesignjunction.com/2012/09/50-fresh-examples-
of-advertising-posters/ (Valve Supplier)
http://www.verticalresponse.com/blog/how-to-create-effective-
small-business-advertising/ (Bus Shelter/Transit Ad Supplier)
11
Verbal and Visual Images
Balance between visual and verbal
Visual processing
Easier to recall
Stored as pictures and words
Concrete vs. Abstract visuals
Most ads seek a balance between visual and verbal, but usually
one will dominate as seen in the last two examples. In recent

years, marketers have moved to more visuals and less emphasis
on verbal content. One reason for the change is that visual
processing is easier for consumers to recall. Visuals are stored
in our brains both as pictures and as words therefore, concrete
images tend to be remembered better than abstract visuals
12
Verbal and Visual Images
Radio visual imagery
Visual Esperanto
International ads
B2B advertisements
Radio ads that can make listeners use their imagination and
picture the product work very well. Vacation destinations
attempt this via radio.
Visual esperanto is the ability of a visual to transcend cultures
and languages by conveying the same meaning. It is beneficial
in international ads where advertisers want to convey the same
message to every market in the world. McDonald’s Yellow
Arches and Nike’s Swoosh logo are good examples of this.
The picture you see here could be effective for a tourism
destination but its very generic. Unless the brand uses it
consistently, a similar image may be used by competitors and
then brand parity issues arise.
Understanding everything we have reviewed so far involves
intense marketing research and financial consideration. We will
now shift to the impact of advertising expenditures and its
relationship to advertising effectiveness.

13
Advertising Expenditures
Factors impacting relationship between advertising, promotions,
and sales:
Goals involved “Choose MD Anderson Cooper Cancer Center”
Threshold effects – the point where advertising and consumer
responses peak
Diminishing returns – the point where ad expenses should be
decreased and reallocated
A number of factors influence the relationship between
advertising, promotions and sales.
The goal of the promotion may be to increase brand awareness
or build brand image. The campaign “Choose MD Anderson
Cooper Cancer Center” is an example of building brand image
and loyalty in the Philly Metro area with intense competition
Threshold effects are present at the point where the advertising
or communication begins to affect consumer responses in a
positive direction. Apple’s launch of the iPhone and subsequent
versions are positive examples as they often run a pre-launch,
launch and post-launch phase when introducing a new product
and know when to decrease spending/advertising when interest
wanes and consumers look out for a new product.
Diminishing returns will be reached when an advertising
campaign has saturated the market and further expenditures
produce diminishing returns or a minimal impact.
14
Factors impacting relationship between advertising, promotions,
and sales:

Carryover effects (Maytag Appliances)
Wear-out effects (Sears and JCPenney)
Decay effects (Blackberry, Toys R Us)
Random events (weather and economic conditions)
Here are other factors:
Carryover effects refer to an ad’s message being remembered or
carried over to the time when the product is needed and the
consumer is thinking about the purchase. Examples Maytag
Appliances and Raymour and Flanigan Furniture – they run
continuous advertising with bursts during key times of year to
ensure we will think of their brands first when the need arises.
Wear-out effects occur when an ad or message becomes old and
stale and the consumer no longer pays attention to it. Ex. JC
Penney
Decay effects occur when a company quits advertising, and the
brand name begins to fade in people’s memories. Ex. Sears,
Blackberry and Toys R Us
Sales can also be impacted by random events, such as weather
conditions or an economic recession.
The following chart illustrates some of these effects.
15
Expenditures and Sales and Profit Margins
Sales
An unrealistic assumption about the relationship between
promotional expenditures and sales.

Marketers should not assume that sales will continue to increase
if more money is spent on advertising and promotional
expenditures and need to forecast that point in time when
diminishing returns will begin.
There is no crystal ball and this is why consistent SWOT and
PEST analyses are conducted two or more times per year
depending on the industry to ensure strong sales and market
share placement.
16
Expenditures and Sales and Profit Margins
A sales-response function curve combined with the downward
response curve and marginal analysis.
Dollars
Threshold Effects
Diminishing Returns
Sales
Concave Downward Response Curve
This graph is much more logical in terms of the relationship b/w
sales growth and the amount of advertising expenditures. We
are able to be more proactive in terms of changing our
advertising strategy after the threshold point and before
diminishing returns. Apple’s iPhone XR and XS have have
reached this this point. However the iPhone 11 is in the entry
phase.
17
Learning Objectives
Identify advertising theories important to the process of
advertising campaign management
Analyze the relationship of advertising expenditures to

advertising effectiveness
18
19

Advertising Campaign Management Part 3Jennifer Sundstrom-F.docx

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