ADVERTISING STRATEGY AND I.M.C

1. ADVERTISING STRATEGY AND I.M.C Professor Chip Besio Cox School of Business Southern Methodist University

2. Marketing MixPROMOTION • Advertising • Sales Promotions (short-term incentives) • Personal Selling • Public Relations • Direct Marketing

3. What Is Advertising? • Paidform of non-personal presentation of ideas, product • Main vehicle used to build image

4. Traditional Communication Model Rules 1. Consider the receiver 2. Determine the desired response

5. Advertising Objectives Informative Advertising Build Primary Demand Persuasive Advertising Build Selective Demand Reminder Advertising Keeps Consumers Thinking About a Product. Comparison Advertising Compares One Brand to Another

6. More Recent Communications Models • User expects a degree of personal control of information • Individuals are active participants in communications (e.g., multiple feedback loops, immediate communication) • Browsing the web results in a level of satisfaction and pleasure

7. Message Strategy • Considerations in developing the message • What are the objectives? • Who is target market? • What are current perceptionsof the brand?

8. Message Execution • Appeal • Rational vs. • Emotional • Product-focused vs. • Customer-focused • Effective ad copy must capture the target Market’s attention and interest • Point-of-View • One-sided • Two-sided • Comparative • Should Be: • Meaningful • Believable • Distinctive

9. Message ExecutionEXAMPLES Testimonial Evidence Slice of Life Scientific Evidence Lifestyle Typical Message Execution Styles Fantasy Technical Expertise Mood or Image Personality Symbol Musical

10. Media • Needs to provide access to the target market • Needs to fit with product • Needs to fit with the message • Generate exposures cost effectively

11. When and How Often to Advertise • Timing - Depends upon viewing and/or reading habits • Frequency- depends on the complexity of the message • Wear out- Advertising too frequently risks negative associations with the brand and “tuning out

12. Advertising Arithmetic • Reach - The percentage of the population that has been exposed to the advertisement at least once (cannot exceed 100%) • Frequency - The average number of times that a reached individual has been exposed to the advertisement • GRPs (Gross Rating Points)- Usually expressed as a percentage of the population, it measures the total number of exposures that result from a given set of media options (can exceed 100%). GRPs = Reach x Frequency

13. How Do We Evaluate Ads? QUESTION: “I know that half of my advertising is wasted. My problem is that I don’t know which half.” --- John Wannamaker (circa 1935) • Recall • Recognition • Theater tests • Mock magazines • Behavior • Hits/click-throughs SALES?

14. WHAT IS THE RELATIONSHIPBETWEEN AD SPENDING AND RESULTS? Awareness/ Attitudes Advertising

15. Who Develops the Advertising? Sales Departments in Small Companies Advertising Departments in Larger Companies Advertising Agency Firm that Assists Companies in Planning, Preparing, Implementing and Evaluating Their Advertising Programs.

16. Television Advantages Large audience Low cost per exposure High impact- colour, sound and movement Can target specific groups Disadvantages Very high overall cost Limited prime time space Short-lived May not be watched- visual wallpaper Proliferation of channels reduces audience Conveys only a limited message

17. Magazines Advantages Useful for targeting specific groups Good reproduction- high quality gloss images Long life-read at leisure Can be linked to features All consumer interests catered for Disadvantages Can be expensive Long lead time Some magazines are only published monthly Moderate impact Slow impact due to long life Magazines with limited readership are not suitable for mass marketing

18. Advertising on the Internet Paid-for search inclusion (e.g. Google Adwords) Company website. Banner ads - on line adverts on relevant website. Link exchange- mutual exchange of links between web sites or similar or complementary interest. Search engine/directory listing. Ezine/email sponsorship- on line magazines delivered to subscribers via email.

19. Advertising and Promotion

20. Advertising and Promotion Internet advertising is rapidly replacing some traditional ad forms

21. Radio Advantages Relatively inexpensive Can target specific segment Relatively mobile Local Disadvantages Limited impact No vision Short life Listener’s attention limited Audio wallpaper Mainly local rather than national

22. Newspapers Advantages Widely read Can target specific segments Frequent publication Short lead time Inexpensive compared to television Local, regional and national papers available Colour printing adds to impact Disadvantages Short life Low impact May get lost in the rest of the paper Not every group reads a paper High costs especially for national newspaper

23. Cinema Advantages High impact Captive audience Can be specifically targeted Local audience Visual, sound, movement Disadvantages Limited audience Mainly young audience Short lived message May only be seen once

24. Outdoor (Billboards) Advantages Repeatedly seen 24/7 coverage Target particular area May encourage impulse buying if close to shops Local media Disadvantages Message must be short and simple Cannot target socio economic groups Rarely attract full attention Short lived May be seen as traffic hazard Difficult to measure effectiveness

25. Advertising and Promotion - Outdoor Digital Bulletins Bulletins w/ Extensions Wallscapes Cityscape Spectaculars

26. Advertising and Promotion - Outdoor

27. The Evolution of Advertising in the United States - Madison and Vine Branded Entertainment • The blending of advertising and integrated brand promotion with entertainment programming • Brand “placement” key tactic here • Some films and television programs are considered hour long promotions

28. IMC - A Broader View of Advertising • Mass Marketing • Selling orientation • One-size-fits-all IMC • IMC involves integrating all communications with the customer to develop a more personal, more effective relationship • One-on-Few • Marketing • De-massification • Customer knowledge • Interactivity • One-on-One • Marketing? • Customization • Micro-marketing • Relationships

29. IMCINTEGRATION Where - Media When - Timing Contact Points Message On Strategy Marketing P.R. Direct Marketing Promotion Advertising

30. IMCMEASUREMENT • Another key to IMC is measuring: • Exposures • Attitudes • Behaviors ...and tracking the changes over time • This enables monitoring of customer relationships