14 Promotion

Chapter 17Advertising & PR1PERSUADEObjectives of Advertising

REMINDINFORMto develop initial demandincrease demand for an existing productto reinforce previous promotions.Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-2

Advertising and Market ShareNew brands spend proportionately more for advertising than old ones.

A certain level of exposure is needed to affect purchase habits. Beyond a certain level, diminishing returns set in. Advertising Response FunctionCopyright 2000 by Houghton Mifflin Company. All rights reserved.17-3Advertising Response Function

Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-4Advertising Evolution& Effects

Ad expenses have risen over the past decade (mature mkt). Ex: Arm & HammerU.S. spends more on ads than any other country GM, P&G, and Time Warner each spend approx. $10 Million a DAY on U.S advertising!!!!!

5Major Types of AdvertisingEnhance identityPioneeringCompetitiveComparative..Advertising..AdvertisingadvertisingInstitutionalCorporationsAdvocacyProduct Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-6What kind?

What kind?

What kind?

9200420052007 eu

2009

Types of Ads Product Ads promote a specific itemPioneering: inform/build primary demand for item (intro stage; net phone, and what else??)

12Types of AdsComparative adsSpecific brand comparison of a specific attribute (Pain relievers and Caffeine)The Cola Wars! The Beer Wars! The cereal wars! The detergent wars!Research must support (Listerine and plaque)

vs.

Any differences?13

http://www.youtube.com/watch?v=TYBTT5wvSLQ151.6Competitive (brand) Ads

-Later in PLC-Selective demand -Build brand recall-Create affect

16Advertising CampaignA series of related advertisements focusing on a common theme, slogan, and set of advertising appeals.Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-17Steps in Creating an Advertising CampaignDetermine the advertising objectives.Make creative decisions.Make media decisions.Evaluate the campaign.Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-18How do dirty boys get clean?

ProblemSales plateau. 53% of the target (18-34 year old guys) still switched between bars and shower gel, and 33% stuck entirely with their old-fashioned, non-Axe (and lowmargin)bar soap.Objective:To increase Axe Shower Gel occasions by 4% and sales by 13%.Creative DecisionsComponentsof Creative DecisionsDevelop and EvaluateAdvertising AppealsExecute the MessageEvaluate theCampaigns EffectivenessIdentify Product BenefitsCopyright 2000 by Houghton Mifflin Company. All rights reserved.17-21Creative decisionsAha! moment (creative idea)Sell more Axe Shower Gel by creating a manly shower tool (why the leap?)

Guys wanted:Something tough to clean them butnot that toughSomething versatile as some parts are sensitiveSomething controllable ( to match the level of scrub with their different needs)because girls notice everything, from head to toe

Product benefits? Rough and Gentle scrubbing!!Common Advertising AppealsValueHealthLove or romanceFearAdmirationConvenienceFun and pleasureVanity and egotism Environmental ConsciousnessProduct saves, makes, or protects money Appeals to body-conscious or health seekersUsed in selling cosmetics and perfumesSocial embarrassment, old age, losing health Reason for use of celebrity spokespeopleUsed for fast foods and microwave foodsKey to advertising vacations, beer, parksUsed for expensive or conspicuous items Centers around environmental protectionCopyright 2000 by Houghton Mifflin Company. All rights reserved.17-23What appeal?

Executing the MessageMood or ImageMusicalDemon-strationScientificReal/AnimatedProductSymbolsFantasyLifestyleSlice-of-LifeHumorousSpokes-person/TestimonialCopyright 2000 by Houghton Mifflin Company. All rights reserved.17-25Notes:Message execution is the way an advertisement portrays its information. The AIDA plan is a good means of executing an advertising message.

An ad should immediately get attention, and hold consumers interest, create desire for the good, and motivate an action of purchase.

Exhibit 15.3 lists and describes the ten common executional styles for advertising. Executional styles often dictate the media utilized. For example, print works well for scientific executional styles, while demonstration and musical styles are more likely found in broadcast advertising.

Executional styles for foreign advertising are different from those in the United States. They often are sexually oriented or aesthetically imaginative.

Post-campaign evaluation can be the most demanding task facing advertisers.

What kind of execution?http://www.youtube.com/watch?v=zu_EKCrjTqg

Media Selection ConsiderationsCost per ContactFactorsInfluencingMedia Mix DecisionsReach: portion of audience we want to reachFrequency: how often?Audience SelectivityWhat media?Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-27Media SchedulingTypes of Media Schedules

Continuous Media ScheduleFlighted Media SchedulePulsing Media ScheduleSeasonal Media ScheduleCopyright 2000 by Houghton Mifflin Company. All rights reserved.17-28Make media decisions

Plus PRCommunication in AdsEffectiveness very difficult to measureTesting improves performance (Dr. Pepper)Recall of ads may be poor (Infiniti)

30Results:

Plus: 630,000+ YouTube spot views to date and over 500 comments. 101 product reviews on Amazon.com, with a 4 star rating average. 2,839 Facebook requests for a free Detailer and 63,786 Detailer Gifts given. Axe Detailer searches were as popular as (and sometimes more) Axe Effect searches traditionally our biggest hitPublic RelationsEvaluates public attitudesIdentifies issues of public concernExecutes programs to gain public acceptance The Role of Public RelationsCan you imagine Axe PR?Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-32Functions of Public RelationsPress Relations Product PublicityCorporate CommunicationsLobbyingNews Release

FLASH . . .CAR TIPS OVERIN TEST!Consumer OrganizationWants Recall. Feature Article

Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-33Product PlacementProduct/Brand Placement Advertainmentwww.bmwfilms.com

Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-34Product Placement: placement of products in movies and tv for merchandise or cash up to $40,000

Gardenburger -- Portland -- 1997 $57 Million 1998 - $40 Million in the first half alone

Seinfeld -- May 1998PR vs Publicity

Copyright 2000 by Houghton Mifflin Company. All rights reserved.17-35