I. Chapter Objectives
II. Advertising Strategy
i. Purposes of Advertising
III. Advertising Objectives
i. To inform target customers
ii. To persuade target customers
V. Advertising Mix
i. What to say
Positioning
Repositioning
ii. How to say it
Copy Strategy: How to say message
i. Where to say it
ii. When to say it
Media Plan: Where and When to advertise
iii. How much to spend
Advertising Budget
iv. How to measure effectiveness of results
Advertising Testing
V. Advertising Execution
i. Nine execution styles
ii. Media Plan: Where and When to advertise
Television
Cable TV
Radio
Newspaper
VI. Advertising Budget
i. Factors in setting Advertising Budget
ii. Accumulated Depreciation
iii. Accountable Advertising
Four elements compromise a direct
mail piece
VII. Advertising Testing
Recall
Involvement
Persuasion
VIII. Summary
Chapter Objectives
• Explain the purposes of advertising strategy.
• Discuss the advertising objectives.
• Explain the advertising mix and how does it
apply to the products.
• List the nine advertising execution styles.
• Explain the use of Media Plan.
• Demonstrate the use of advertising budget.
• Explain the different ways to test effectiveness
of advertising materials.
ADVERTISING IS A PULL STRATEGY
SALES PROMOTIONS IS A PUSH
STRATEGY

 BRAND ADVERTISING
INSTITUTIONAL ADVERTISING
CLASSIFIED ADVERTISING
PROMOTIONAL ADVERTISING
ADVOCACY ADVERTISING
ADVERTISING OBJECTIVES
MUST BE RELEVANT TO THE
EXISTING MARKET SITUATION
OBJECTIVES MUST BE SMART

•SPECIFIC
•MEASURABLE
•ATTAINABLE
•REALISTIC
•TIME BOUND
TO INFORM TARGET
CUSTOMERS ABOUT
1. NEW PRODUCT
2. PRODUCT FUNCTION
3. CORRECT USAGE
4. NEW USES
5. NEW DISTRIBUTION
6. PRICE ADJUSTMENT
TO PERSUADE TARGET
CUSTOMERS ABOUT:
1. BRAND PREFERENCE
2. BRAND SWITCHING
3. URGENCY TO BUY NOW
4. ACTION TO BE TAKEN
1.
2.
3.
4.
5.
6.

WHAT TO SAY (MESSAGE/POSITIONING)
HOW TO SAY IT (COPY EXECUTION)
WHERE TO SAY IT (MEDIA SELECTION)
WHEN TO SAY IT (MEDIA SCHEDULING)
HOW MUCH TO SPEND
HOW TO MEASURE THE EFFECTIVENESS
OF RESULT
ADVERTISING MIX

BRAND AWARENESS LEADS TO
BRAND ASSOCIATION AND THIS IS
WHERE POSITIONING COMES IN.
THERE ARE TIMES WHEN BRAND
AWARENESS IS HIGH BUT BRAND
ASSOCIATION IS NEGATIVE.
ADVERTISING MIX

 POSITIONING IS ALSO ACHIEVED
NOT ONLY IN TERMS OF MEDIA
COMMUNICATION BUT ALSO IN
TERMS OF ADOPTING MARKETING
POLICIES CONSISTENT WITH ITS
DESIRED IMAGE.
ADVERTISING MIX

POSITIONING IS THEREFORE
THE ACT OF COMMUNICATING
TO CONSUMERS THE OVERALL
POSITIVE IMPRESSION FOR A
BRAND , RELATIVE TO
COMPETITION.
ADVERTISING MIX

TWO CONCEPTS :
1. CHANGING AN OLD
BRAND POSITIONING TO
NEW BRAND
POSITIONING
2. CHANGING CONSUMER
PERCEPTION
ADVERTISING MIX

COPY BRIEF IS THE BASIC
PROPOSITION, CONSUMER PROMISE OR
STATEMENT OF BENEFIT.
IT INCLUDES THE PRODUCT FEATURES AND
PROOFS THAT JUSTIFY THE PROPOSITION TO
MAKE CONVINCING AS POSSIBLE.
INCLUDES BRAND IMAGE TO BE
PROJECTED, AND FREQUENTLY THE CONSUMER
IMAGE, OR THE PICTURE THAT TARGET USERS
ASCRIBE TO THE BRAND.
1.
2.
3.
4.
5.
6.
7.
8.
9.

SLICE OF LIFE
SCIENTIFIC EVIDENCE
TESTIMONIAL EVIDENCE
TECHNICAL EXPERTISE
LIFESTYLE
FANTASY
IMAGE
MUSICAL
PERSONALITY SYMBOL
ADVERTISING EXECUTION

A. TELEVISION
> 11.8 MILLION HOMES W/TV
SETS, OUT OF 15.3 MILLION
HOMES NATIONWIDE.
> BIGGEST TV NETWORK IS ABSCBN W/ PENETRATION LEVEL
COVERING 97%, FOLLOWED BY
GMA 7
ADVERTISING EXECUTION

B. CABLE TV
> THERE ARE ABOUT 2.5
MILLION HOMES WITH CABLE
TV.
>OVER 40% OF METRO MANILA
HOMES AND ABOUT 10% OF
HOMES IN PROVINCIAL AREAS
SUBSCRIBE TO CABLE TV.
ADVERTISING EXECUTION

C. RADIO
> THERE ARE 871 STATIONS, 815 OF
WHICH ARE LOCATED IN THE
PROVINCIAL AREAS.
>DZRH, DZMM AND DZBB ARE THE
3 LEADING RADIO STATIONS IN
TERMS OF AM AUDIENCE SHARE
>SOME 6,600 RADIO SPOTS ARE
PLAYED DAILY IN 56 GMA RADIO
STATION
ADVERTISING EXECUTION

D. NEWSPAPER
>IN TERMS OF
CIRCULATION, PHILIPPINE DAILY
INQUIRER LEADS AMONG ALL
NEWSPAPER W/CLOSE TO 300,000
COPIES, FOLLOWED BY MANILA
BULLETIN AND PHILIPPINE STAR.
PRODUCT CATEGORY- PRODUCT
WITH SEVERAL COMPETITION OR
SUBSTITUTES, PRODUCTS THAT
ARE NON – ESSENTIAL IN
NATURE, PRODUCTS THAT ARE
USED EVERYDAY, OR NEW
CONSUMER PRODUCTS ARE
NORMALLY ADVERTISED MORE
HEAVILY
COMPETITION AND MARKET SHARES
- SINCE AWARENESS IS THE FIRST PREREQUISITE TO CONSUMER’S PURCHASE
INTENTION, HIGHER MARKET SHARE
TARGRTS WOULD REQUIRE INCREASE
IN AWARENESS LEVEL, SPECIALLY
WHEN COMPETITION IS HEAVILY
ADVERTISED.
 ADVERTISING FREQUENCY –
THE NUMBER OF TIMES
NEEDED TO PUT ACROSS A
BRAND’S MESSAGE TO
CONSUMERS IS AN
IMPORTANT VARIABLE TO
CONSIDER.
ADVERTISING BUDGET

WHILE INVESTMENT IN FIXED ASSETS LIKE
BUILDINGS AND EQUIPMENTSARE ALLOWED
TO BE DEPRECIATED OVER A LONG PERIOD
OF TIME, INVESTMENT IN ADVERTISING HAS
TO BE TREATED AS A CURRENT EXPENSE.
SOME PRO-TAX LEGISLATORS WOULD
LIMIT ADVERTISING TO A SPECIFIC
PERCENTAGE OF A COMPANY’S SALES
REGARDLESS OF PRODUCT OR INDUSTRY.
ADVERTISING BUDGET

 DIRECT MARKETING SEEKS TO
GENERATE A DIRECT AND MEASURABLE
RESPONSE TO ADVERTISING.
IT CAN TAKE A FORM OF DIRECT
MAIL, TELEMARKETING, FAX MAIL, AND
DIRECT RESPONSE MEDIA ADVERTISING.
DIRECT RESPONSE MEDIA
ADVERTISING CAN TAKE THE FORM OF
PRINT SUCH AS WHAT VISA OE MASTER
CARD REGULARLY PLACE IN NEWSPAPER.
IT CAN ALSO BE BROADCAST SUSH AS
IN TV, RADIO, OR CABLE.
ADVERTISING BUDGET

FOUR ELEMENTS COMPRISE A
DIRECT MAIL PIECE :
 OUTER ENVELOPE
LETTER
BROCHURE
REPLY CARD
ONE ADVERTISING RESEARCH MODEL
AVAILABLE CALLED THE BUY TEST
DEVELOPED BY DR. MILTON SHERMAN
GROUP INC. OF NEW YORK.
 BUY TEST UTILIZES A ONE-ON-ONE
INTERVIEW TECHNIQUE WITH A
MINIMUM OF 130 RESPONDENTS PER
ADVERTISING MATERIAL TO BE TESTED.
THE BUY TEST DIVIDES
CONSUMER IN 3 DISTINCT
CATEGORIES:
RECALL
INVOLVEMENT
PERSUASION
In

this chapter, we concentrate in brand
advertising the most frequently used purpose of
advertising. The objectives of advertising which
is to inform and persuade the target customers.
It shows the critical advertising decisions to be
made before an advertising program can be
implemented. The different execution styles that
leave a mark or message in advertising. We
discuss the expenses in product and what are
the things to be considered, and the process in
advertising.
“If you don’t make a mark or
you’re not even noticed; you’ll
never have a chance.”
By: Francis Lumen,
President of Nation Broadcasting
Corporation
Thank You!

Advertising Strategy

  • 2.
    I. Chapter Objectives II.Advertising Strategy i. Purposes of Advertising III. Advertising Objectives i. To inform target customers ii. To persuade target customers V. Advertising Mix i. What to say Positioning Repositioning
  • 3.
    ii. How tosay it Copy Strategy: How to say message i. Where to say it ii. When to say it Media Plan: Where and When to advertise iii. How much to spend Advertising Budget iv. How to measure effectiveness of results Advertising Testing V. Advertising Execution i. Nine execution styles
  • 4.
    ii. Media Plan:Where and When to advertise Television Cable TV Radio Newspaper VI. Advertising Budget i. Factors in setting Advertising Budget ii. Accumulated Depreciation iii. Accountable Advertising Four elements compromise a direct mail piece
  • 5.
  • 6.
    Chapter Objectives • Explainthe purposes of advertising strategy. • Discuss the advertising objectives. • Explain the advertising mix and how does it apply to the products. • List the nine advertising execution styles. • Explain the use of Media Plan. • Demonstrate the use of advertising budget. • Explain the different ways to test effectiveness of advertising materials.
  • 7.
    ADVERTISING IS APULL STRATEGY SALES PROMOTIONS IS A PUSH STRATEGY  BRAND ADVERTISING INSTITUTIONAL ADVERTISING CLASSIFIED ADVERTISING PROMOTIONAL ADVERTISING ADVOCACY ADVERTISING
  • 8.
    ADVERTISING OBJECTIVES MUST BERELEVANT TO THE EXISTING MARKET SITUATION OBJECTIVES MUST BE SMART •SPECIFIC •MEASURABLE •ATTAINABLE •REALISTIC •TIME BOUND
  • 9.
    TO INFORM TARGET CUSTOMERSABOUT 1. NEW PRODUCT 2. PRODUCT FUNCTION 3. CORRECT USAGE 4. NEW USES 5. NEW DISTRIBUTION 6. PRICE ADJUSTMENT
  • 10.
    TO PERSUADE TARGET CUSTOMERSABOUT: 1. BRAND PREFERENCE 2. BRAND SWITCHING 3. URGENCY TO BUY NOW 4. ACTION TO BE TAKEN
  • 11.
    1. 2. 3. 4. 5. 6. WHAT TO SAY(MESSAGE/POSITIONING) HOW TO SAY IT (COPY EXECUTION) WHERE TO SAY IT (MEDIA SELECTION) WHEN TO SAY IT (MEDIA SCHEDULING) HOW MUCH TO SPEND HOW TO MEASURE THE EFFECTIVENESS OF RESULT
  • 12.
    ADVERTISING MIX BRAND AWARENESSLEADS TO BRAND ASSOCIATION AND THIS IS WHERE POSITIONING COMES IN. THERE ARE TIMES WHEN BRAND AWARENESS IS HIGH BUT BRAND ASSOCIATION IS NEGATIVE.
  • 13.
    ADVERTISING MIX  POSITIONINGIS ALSO ACHIEVED NOT ONLY IN TERMS OF MEDIA COMMUNICATION BUT ALSO IN TERMS OF ADOPTING MARKETING POLICIES CONSISTENT WITH ITS DESIRED IMAGE.
  • 14.
    ADVERTISING MIX POSITIONING ISTHEREFORE THE ACT OF COMMUNICATING TO CONSUMERS THE OVERALL POSITIVE IMPRESSION FOR A BRAND , RELATIVE TO COMPETITION.
  • 15.
    ADVERTISING MIX TWO CONCEPTS: 1. CHANGING AN OLD BRAND POSITIONING TO NEW BRAND POSITIONING 2. CHANGING CONSUMER PERCEPTION
  • 16.
    ADVERTISING MIX COPY BRIEFIS THE BASIC PROPOSITION, CONSUMER PROMISE OR STATEMENT OF BENEFIT. IT INCLUDES THE PRODUCT FEATURES AND PROOFS THAT JUSTIFY THE PROPOSITION TO MAKE CONVINCING AS POSSIBLE. INCLUDES BRAND IMAGE TO BE PROJECTED, AND FREQUENTLY THE CONSUMER IMAGE, OR THE PICTURE THAT TARGET USERS ASCRIBE TO THE BRAND.
  • 17.
    1. 2. 3. 4. 5. 6. 7. 8. 9. SLICE OF LIFE SCIENTIFICEVIDENCE TESTIMONIAL EVIDENCE TECHNICAL EXPERTISE LIFESTYLE FANTASY IMAGE MUSICAL PERSONALITY SYMBOL
  • 18.
    ADVERTISING EXECUTION A. TELEVISION >11.8 MILLION HOMES W/TV SETS, OUT OF 15.3 MILLION HOMES NATIONWIDE. > BIGGEST TV NETWORK IS ABSCBN W/ PENETRATION LEVEL COVERING 97%, FOLLOWED BY GMA 7
  • 19.
    ADVERTISING EXECUTION B. CABLETV > THERE ARE ABOUT 2.5 MILLION HOMES WITH CABLE TV. >OVER 40% OF METRO MANILA HOMES AND ABOUT 10% OF HOMES IN PROVINCIAL AREAS SUBSCRIBE TO CABLE TV.
  • 20.
    ADVERTISING EXECUTION C. RADIO >THERE ARE 871 STATIONS, 815 OF WHICH ARE LOCATED IN THE PROVINCIAL AREAS. >DZRH, DZMM AND DZBB ARE THE 3 LEADING RADIO STATIONS IN TERMS OF AM AUDIENCE SHARE >SOME 6,600 RADIO SPOTS ARE PLAYED DAILY IN 56 GMA RADIO STATION
  • 21.
    ADVERTISING EXECUTION D. NEWSPAPER >INTERMS OF CIRCULATION, PHILIPPINE DAILY INQUIRER LEADS AMONG ALL NEWSPAPER W/CLOSE TO 300,000 COPIES, FOLLOWED BY MANILA BULLETIN AND PHILIPPINE STAR.
  • 22.
    PRODUCT CATEGORY- PRODUCT WITHSEVERAL COMPETITION OR SUBSTITUTES, PRODUCTS THAT ARE NON – ESSENTIAL IN NATURE, PRODUCTS THAT ARE USED EVERYDAY, OR NEW CONSUMER PRODUCTS ARE NORMALLY ADVERTISED MORE HEAVILY
  • 23.
    COMPETITION AND MARKETSHARES - SINCE AWARENESS IS THE FIRST PREREQUISITE TO CONSUMER’S PURCHASE INTENTION, HIGHER MARKET SHARE TARGRTS WOULD REQUIRE INCREASE IN AWARENESS LEVEL, SPECIALLY WHEN COMPETITION IS HEAVILY ADVERTISED.
  • 24.
     ADVERTISING FREQUENCY– THE NUMBER OF TIMES NEEDED TO PUT ACROSS A BRAND’S MESSAGE TO CONSUMERS IS AN IMPORTANT VARIABLE TO CONSIDER.
  • 25.
    ADVERTISING BUDGET WHILE INVESTMENTIN FIXED ASSETS LIKE BUILDINGS AND EQUIPMENTSARE ALLOWED TO BE DEPRECIATED OVER A LONG PERIOD OF TIME, INVESTMENT IN ADVERTISING HAS TO BE TREATED AS A CURRENT EXPENSE. SOME PRO-TAX LEGISLATORS WOULD LIMIT ADVERTISING TO A SPECIFIC PERCENTAGE OF A COMPANY’S SALES REGARDLESS OF PRODUCT OR INDUSTRY.
  • 26.
    ADVERTISING BUDGET  DIRECTMARKETING SEEKS TO GENERATE A DIRECT AND MEASURABLE RESPONSE TO ADVERTISING. IT CAN TAKE A FORM OF DIRECT MAIL, TELEMARKETING, FAX MAIL, AND DIRECT RESPONSE MEDIA ADVERTISING. DIRECT RESPONSE MEDIA ADVERTISING CAN TAKE THE FORM OF PRINT SUCH AS WHAT VISA OE MASTER CARD REGULARLY PLACE IN NEWSPAPER. IT CAN ALSO BE BROADCAST SUSH AS IN TV, RADIO, OR CABLE.
  • 27.
    ADVERTISING BUDGET FOUR ELEMENTSCOMPRISE A DIRECT MAIL PIECE :  OUTER ENVELOPE LETTER BROCHURE REPLY CARD
  • 28.
    ONE ADVERTISING RESEARCHMODEL AVAILABLE CALLED THE BUY TEST DEVELOPED BY DR. MILTON SHERMAN GROUP INC. OF NEW YORK.  BUY TEST UTILIZES A ONE-ON-ONE INTERVIEW TECHNIQUE WITH A MINIMUM OF 130 RESPONDENTS PER ADVERTISING MATERIAL TO BE TESTED.
  • 29.
    THE BUY TESTDIVIDES CONSUMER IN 3 DISTINCT CATEGORIES: RECALL INVOLVEMENT PERSUASION
  • 30.
    In this chapter, weconcentrate in brand advertising the most frequently used purpose of advertising. The objectives of advertising which is to inform and persuade the target customers. It shows the critical advertising decisions to be made before an advertising program can be implemented. The different execution styles that leave a mark or message in advertising. We discuss the expenses in product and what are the things to be considered, and the process in advertising.
  • 31.
    “If you don’tmake a mark or you’re not even noticed; you’ll never have a chance.” By: Francis Lumen, President of Nation Broadcasting Corporation Thank You!