16 advertising

8/9/2019 16 Advertising

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644644 Buyer Behaviour &Buyer Behaviour &Communication StrategiesCommunication Strategies

16. Advertising16. Advertising


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Advertising

At its simplest, advertising is first andforemost a process of communication:

- Paid for and non-personal.


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Advertising

Usually defined as: Mass media communication via newspapers,

magazines, radio, TV, billboards, Internet orother media and/or direct to customer via direct

mail. Cost-effective way to disseminate messages.


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Advertising today

The challenges:

Big market - 2008 NZ Advertising Market: $2.32 billion,down $18 million on 2007.

Increasingly advertising literate customers.

Increasing volume of advertising clutter. More complex and fragmented marketing environment.

The answer:

Integrated marketing communications (Consistent, unified message and identity through all

organizations marketing and communication activities)

To provide cut-through and consistency.


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NZ Advertising Market 2008

Source: NZ Advertising Standards Authority


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NZ Advertising Market 2008

Newspapers - $760 million (down 7.3%)

Television - $647 million

Radio - $268 million

Magazines - $249 million

Interactive - $193 million (up 43%)

Outdoor - $74 million

Unadressed Mail - $61 million Addressed Mail - $56 million

Cinema - $9 million

Source: NZ Advertising Standards Authority


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Broad models employed in advertising

Sales response Simple price-based strategy which encourages the purchase purely

on the basis of its price.

Persuasion

The ability of the ad to shift attitudes towards the brand andmotivate purchase, persuading the audience that the presentedproduct is the most desirable available product (building brandadvantage by highlighting specific benefits culminating in overallimpression of a superior brand).

Involvement Aims to interest and engage the customer, to relate and empathize

with the ad and feel good about the brand (Levis 501 80s & 90scampaigns).


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Effective Advertising - moves customersalong the continuum

Stages AIDA model Hierarchy of Effects model

Cognitive

Attention Awareness

Knowledge

Affective

Interest

Desire

Liking

Preference

Conviction

Behaviour Action Purchase


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The Advertising Process

Setting AdvertisingObjectives

Deciding Budget

CreativeMedia

Evaluate


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Potential Advertising Objectives

To:

Inform The market about a new product, new uses for the

product, how it works, about a price change, etc.

Persuade Building brand preference, encourage brand-switching,

changing buyers perceptions, etc.

Remind Where to buy it, that product may be needed shortly,

maintaining top-of-mind awareness.


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1. Set Advertising Objectives

Decide on Objectives:

What is the problem? Can advertising solve it?

What do we want the advertising to do? To inform, to persuade, to remind, to move consumers from

awareness to purchase?

Who do we need to be talking to? Target Audience

What is the market situation? Situation Analysis factors How does the customer feel about our brand and those of

the competition? Customer survey. What motivates the customer and what do they find relevant?


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2. Set the Budget

4 ways to set the advertising budget: Affordable method;

% of sales method;

Competitive parity method, and; The object and task method.


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3. The Creative

Decide on the advertising message:

Generate, evaluate, select and execute.

Content, structure, format and source? What do we need to say in our advertising?

Key messages.

What do we want people to think and feel?

Rational, emotional or moral appeal. Careful selection of style, tone, words and format.

Is it in keeping with the product/service positioning?


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4. The Media

Deciding on Reach, Frequency and Impact.

Deciding on cost-effective media.

Media Planning.

Advantages and Disadvantages of each media.


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Advantages and Disadvantages of:

Newspapers Newspapers are one of the traditional mediums used by businesses, both big and small alike, to

advertise their businesses.

Advantages Can reach a large number of people in a given geographic area.

Can decide the ad size and placement within the newspaper. Exposure to your ad is not limited; readers can go back to your message again and again. Quick turn-around possible - one to two days.

Disadvantages Ad space can be expensive. Ad has to compete against the clutter of other advertisers, including large ads those of your

competitors.

Poor photo reproduction limits creativity. Advertisement can have a short shelf life. Fairly low targeting potential, unless in specialist section. Newspapers are a highly visible medium, so your competitors can quickly react to your prices. Some newspapers face declining readership and market penetration with growth of Internet.

Source: www.powerhomebiz.com


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Magazines Magazines are a more focused, albeit more expensive, alternative to newspaper

advertising. This medium allows you to reach highly targeted audiences.

Advantages

Better targeting of audience, for magazine publications that cater to specific audiencesor whose editorial content specialises in topics of interest to your audience. High reader involvement means that more attention will be paid to your advertisement. Better quality paper permits better color reproduction and full-color ads. The smaller page permits even small ads to stand out.

Disadvantages

Long lead times mean that you have to make plans weeks or months in advance. The slower lead time heightens the risk of your ad getting overtaken by events. There is limited flexibility in terms of ad placement and format. Space and ad layout costs are higher.



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RadioAdvantages Radio is a universal medium available at home, at work, in the car, shops, etc. Large range of radio program formats offers to efficiently target your advertising dollars

to specific segments of consumers. Gives your business personality through the creation of campaigns using sounds and

voices. Free creative help is often available. Rates can generally be negotiated. During the past ten years, radio rates have seen less inflation than those for other

media.

Disadvantages

Because radio listeners are spread over many stations, you may have to advertisesimultaneously on several stations to reach your target audience. Listeners cannot go back to your ads to go over important points. Ads are an interruption in the entertainment. Because of this, a radio ad may require

multiple exposures to break through the listener's "tune-out" factor and ensuremessage retention.

Radio is a background medium. Most listeners are doing something else while listening,which means that your ad has to work hard to get their attention.



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Television

Advantages Television permits you to reach large numbers of people on a national or

regional level in a short period of time Independent stations or niche channels on SKY offer opportunities to target

specific audiences. Television conveys your message with sight, sound and motion which provide

powerful image-building potential.

Disadvantages Message is temporary, and may require multiple exposures for the ad to rise

above the clutter. Preferred ad times are often sold out far in advance. Limited length of exposure, as most ads are only thirty seconds long or less,

which limits the amount of information you can communicate. Relatively expensive in terms of creative, production and airtime costs.



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5. Campaign evaluation

The extent to which :

The message reached the right people.

The ads actually said what was expected.

Customer perceptions were changed. Sales increased.

The media mix was effective.

Any lessons that could be learned from the campaign.

Campaigns could be improved in the future.


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Evaluating advertising performance

The difficulty is that advertising has the potential to workon variety of levels, only some of which are open tomeasurement and evaluation.

Popular measures can simply assess ad spending impact

vis--vis revenues generated through customer spending. Such single measurement focus cannot lead to an

adequate evaluation of advertising impacts.

Advertising evaluation should reflect the unique

differences of each campaign.


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Potential advertising evaluation measures

Message The extent of the ads ability to communicate service/ product benefits.

Saliency The extent of the ads ability to cut through media clutter and attract attention.

Appeal The extent of the ads appeal and ability to provoke positive reactions.

Branding The extent of the ads linkage and reinforcement with the brand.

Persuasion The extent of the ads ability to shift consumer attitudes towards the brand andstimulate purchase.


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Next Lecture:

Media Planning

16 advertising

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