Lecture 8Promotional Strategy 3

Advertising

Lecture OutlineGlobal advertisingConstraints on global advertisingAgency selectionManaging a campaignTypes of advertisingCreative devicesMediaThe Asian marketWatch UK TV ads free - tellyAds advertshttp://great-ads.blogspot.com/Great-Ads

AdvertisingAdvertising is a paid, mediated form of

communication from an identifiable source, designed to persuade the receiver to take some action, now or in the future (Shimp, 2010, 182)

Any paid form of non-personal presentation and promotion of ideas, goods or services by an identified sponsor (Kotler & Keller, 2009, 538)

Advertising is hard-hitting and powerful … it’s boring and ineffective … enormously creative and entertaining … and it can be simply annoying (Seminik, Allen, O’Guinn & Kaufmann, 2012, 10)

Global AdvertisingA big issue in the 1980’sTheodor Levitt claimed that markets are

becoming increasingly alike worldwideSaatchi and Saatchi claimed that worldwide

brands would soon become the norm and that such an advertising challenge could only be handled by worldwide agencies

Consolidation resulted in large global agencies, including the WPP Group, Omnicom, Interpublic, Saatchi & Saatchi, who were able to manage big global advertising campaigns

Global AdvertisingGlobal businesses market global brandsThe corporate agenda has had an

impact on centralisationAgency networks have made it easier to

globalise campaignsMost advertising does not travel wellMost clients and agencies are looking

for a communication idea that can be used globally and adapted

Global AdvertisingHowever global, it is rare to find a brand that

is in a category that is equally well developed and faces the same competitors

Despite global media, e.g. CNN, media planning and buying, and media consumption are essentially national and local

Increasingly global advertisers aim to control their advertising from the centre

The importance of multicultural teams has grown

Interbrand's top 100 global brands 2011: Coca-Cola still top but Apple gaining fast - Marketing news - Marketing magazine

Global AdvertisingBoth GDP and adspend are expected to be far

higher in the BRIC economies than in the developed world

TV is exceptionally dominant in Brazil, accounting for two-thirds of total adspend in 2011

Newspapers are set to attract roughly one in three ad dollars in both China and India

Online’s share of the media mix in the BRICs is low by Western standards across all four nations

Globally, online spend is predicted to grow twice as fast as any other media channel in 2011 and 2012

BBC News - Google and Facebook top 2011's most visited sites in US(Adstats: Global advertising forecast, 2011)

Global advertising spend and economic outlook 2009-2011

Overall expenditure is expected to rise by 5.3% North America remains the world’s largest ad market and adspend

will rise from $138.8bn in 2010 to $143.5bn in 2011 TV remains the most popular ad medium in Latin America with

expenditure rising in Brazil by 10.2% in 2011 Online penetration in Chile reached 41% in 2009, Brazil was up to

31% and Mexico rose to 24% Proportion of Facebook users: 41% South America, 40% Europe European adspend will account for roughly one-third of the global

total in 2011 The fastest european ad growth will be in the east with Russia

forecast to increase adspend by 17% Across the Asia Pacific region, adspend growth will hold steady at

8.4% for both 2010 and 2011 with economic growth predicted to be 10.5%

Japan boasts the world’s largest mobile marketing sector, with around $1bn spent on the channel in 2010

(Clift 2011, 1-8)

Constraints on Global AdvertisingPromotion is the most visible as well as

the most culture bound of the marketing functions

Organisation of international programmes can be complex

The company has to decide whether to present itself as a local, foreign, or multinational organisation

The level of economic development, Government control as well as other cultural factors affect what an organisation can do

Constraints on Global AdvertisingSome languages are used in more than

one country (English), but there are more languages than countries - accents

Local help is of two kinds: national personnel in countries where the firm has subsidiaries, and the advertising agency in the local market

Government regulation limits commercials on radio and television

Communications infrastructure – newspaper coverage varies from 1 paper to 2 persons in Japan, to 1 to 200 persons in Bangladesh and most of Africa

Constraints on Global AdvertisingTobacco, alcohol and drugs are subject to

specific restrictionsSome countries limit the languages that

can be usedThere are limits on comparative advertisingMany countries require preclearance of

certain commercialsForeign production may be limitedAd budgets from foreign multi-nationals

may be considered too big – Procter and Gamble

Foreign ownership of agencies is restricted - Indonesia

Restrictions on Advertisements for Specific Products in Selected European Countries

Agency Selection Criteria in International Markets

Size of company’s international businessCompany organisation – decentralisationLevel of involvement between partners –

joint venturesMarket coverage – international market

segmentsQuality of coverageMarketing and media research

Agency Selection Criteria in International Markets

Integration with other marketing communications tools

National or international imageLevel of promotion and media expertiseCommunication, control of operations,

and coordination

Top Marketing OrganisationsOmnicom Group New YorkWPP Group LondonInterpublic Group of Cos. New YorkPublicis Group ParisHavas Suresnes, FranceAegis Group LondonHakuhodo DY Holdings SeattleAsatsu-DK Tokyo(Top 25 Marketing Organisations, “Advertising Age” 2008 Issue

in Czinkota & Ronkainen, 2010, p.581)

Advertising – OverviewThe average person encounters more

than 600 advertisements per dayA company cannot afford to prepare ads

for every possible mediumTo be effective, an ad first be noticed …

be remembered … then, the message must incite some form of action, such as a purchase, a shift in brand loyalty, or … a place in the buyer’s long-term memory

(Clow & Baack, 2010, 144)

Advertising Campaign ManagementThe process of preparing and integrating an

advertising programme with the overall IMC message

The message theme is an outline of the key idea

A leverage point is the key element that taps into, or activates, a consumer’s personal value system (value, idea, or concept)

The appeal attracts information and presents information

The executional framework explains how the message will be delivered (slice-of-life)

(Clow & Baack, 2010, 144)

Managing an Advertising CampaignSOSTAC + 4M’sWhere are we now? – SituationPESTLE, Marketing research,

Account/Media planningWhere do we want to go? – ObjectivesCorporate, Business, Marketing

CommunicationsHow will we get there? – TargetingSegmentation, targeting and positioning

Managing an Advertising CampaignMessage strategy – creative/production

(Tactics)Media strategy – planning and buyingHow should we implement/manage our

campaign? – ActionWhat are our resource requirements?What is our timeframe?How should we monitor activities, and

evaluate success/achievement of objectives – Control

(Smith & Taylor, 2004)

Advertising GoalsBuilding brand imageProviding informationPersuasionSupporting marketing effortsEncouraging action(Clow & Baack, 2010, pp156-157)

Hierarchy of Effects ModelAids in clarifying the objectives of a

campaign and the development of individual ads. There are six steps:

1.Awareness2.Knowledge3.Liking4.Preference5.Conviction 6.Actual purchaseThe approach can help a creative understand

how a consumer reaches purchase decisions(Clow & Baack, 2010, p. 173)

The Promotional MessageCreative people must have a clear idea of

the characteristics of the audienceThe marketer must determine motivationsThe ideal situation is to have a world brandMarketers may develop multiple broadcast

and print advertisementsProduct related regulations will affect

advertising messagesMarketers may want to localise symbolsAesthetics plays a role (Czinkota & Ronkainen, 2010, pp. 577-578

The Promotional MessageThe need to use different agenciesEnvironmental influences – culture,

economic development and lifestyleLanguageThe stage of economic development(Czinkota & Ronkainen, 2010, pp. 580-581

Creative Briefs

Why are we advertising?What is the advertising trying to do?Who are we talking to?What do we know about them that will

help us?What is the main thought we need to put

across (USP)

Creative BriefsWhat’s the best way of achieving this?Why do we think we are saying things the

right way?Essential practical considerations (logo,

tel.no., website address)What other client expectations must we

consider?

Creative Devices used in Message Strategy

Great-Ads: Infamous Pepsi Ad 'Concert' featuring Michael Jackson

MusicHumourSlice of lifeTestimonialsComparisonsFear

Creative Devices used in Message Strategy

Problem solvingTalking headsCharacters/cartoons/animalsCelebrities/personalities/experts

(Consider likeability, similarity, expertise, trustworthiness, dynamism and professionalism)

Creative Devices used in Message Strategy

FactsNewsEmotionRationalityGlamourSymbolsContests and sweepstakesSpecial offersBBC News - In pictures: Cadbury adverts

Creative Brief – Del MonteThe objective – increase awareness of the

smaller size cans with pull-top lidTarget Audience – senior citizens, expecially

those who live alone and suffer from arthritisMessage Theme – the cans not only contain a

small portion, but are easier to openConstraints – copyright logo, toll free

number, website address, legal requirements of a coupon and what is meant by a small serving(Clow & Baack, 2010)

Nike ShoesProfessional athletes were shown in various

executions playing hockey, volleyball, baseball, bowling, boxing etc

The brilliance was in the juxtaposition of famous athletes with sports other than those for which they are known:Andre Agassi played baseballLance Armstrong portrayed as an accomplished

boxerSerena Williams made a vicious serve in volleyball(Shimp, 2010, 216)

Absolut VodkaAbsolut AdThree brands (Stolichnaya, Finlandia, Wybrowa made

up less than 1 percent of the total US Vodka marketCampaign based on print advertisingWith a two word headline1.Absolut described the brand e.g. Absolut perfection2.Characterised the consumer e.g. Absolut Sophisticate3.Associated with places, people, events e.g. Absolute

BarcelonaReplaced in 2007 with “In an Absolute World”(Shimp, 2010, 214)

Media Strategy

Consider:Target audience characteristicsCampaign objectivesBudgetMedia availabilityLocal versus global media

Main Forms of Media

BroadcastPrintOutdoorDigital mediaIn-storeOther Interactive marketing communications(Fill, 2009, 711-800)

Types of AdvertisingFull display adsSemi display adsClassified advertising (lineage/word ads)AdvertorialsInfomercialsDirect response adsWeb/home pagesBanner ads and hypertext linksIntermercial – appears between the

content of a website

Benefits of Advertising

It can reach mass audiences (large coverage)

It is able to target selectivelyIt has a low unit cost (cpt)It is economical, efficient, and effective at

reaching large audiencesIt is effective in establishing brand image

and brand development in international markets

The Effectiveness of Using a Global Look in an Asian Market

For most consumers in East Asian countries, a Western look is synonymous with a global look

English brand names also signal the global quality of a brand

The influence of ethnicity is limited to perceptions of product quality

The influence of language is limited to perceptions of brand friendliness, brand trust and brand liking

The Effectiveness of Using a Global Look in an Asian Market

The influence of Western models is positiveThe influence of English brand names is

negativeChinese brand names activate a positive

home-country biasThe use of Asian models does not improve

consumer’s perceptions of products on affective domains regarding brand friendliness and brand liking

(Chang, 2008)

ChinaThe Chinese ad market is already the

world’s fourth-largest in terms of spendToiletries are currently the biggest-

spending ad category in ChinaMost urban-dwelling 13-45 year olds

believe using “famous” brands can enhance their social standing

The nation’s largest demographic group is now aged 15-24 reflected in a rapid increase in online adspend

(Adstats: China, 2012)

ReferencesAdstats: Global advertising forecast (2011). Retrieved March 20, 2012 from

http://www.warc.om/Content/PrintViewer.aspx?MasterContentRef=7341c101-a212-

Adstats: China (2012). Retrieved March 20, 2012 from http://www.warc.com/Content/PrintViewer.aspx?MasterContentRef=b22b1d1e-5257

Chang, C., (2008) The Effectiveness of Using a Global Look in an Asian Market. Journal of Advertising Research 48, 2, (June).

Clift, J. (2011) Global advertising spend and economic outlook 2009-2011. Retrieved March 20, 2012 from http://www.warc.com/Content/PrintViewer.aspx?MasterContentRef=09E3FF4-E9B2-4

Clow, K.E, & Baack, (2010) Integrated Advertising, Promotion and Marketing Communications, 4e. Upper Saddle River, NJ: Pearson Prentice Hall

Czinkota M.R. & Ronkainen, I.A., (2010) International Marketing, 9e. Mason, OH: Cengage

Fill, C., (2009) Marketing Communications, Interactivity, Communities and Content, 5e. Harlow: Pearson Education

ReferencesGoodman, C., (2009) Creating the best online advertising. Retrieved

March 20, 2012 from http://www.warc.com/Content/PrintViewer.aspx?MasterContentRef=9864db97-82d9

Minami, I., (2008) Why western brand advertising has not been established in Japan. Nikkei Advertising Research Institute, Japan, (February)

Semenik, R.J. (2012) Advertising and Promotions, An Integrated Brand Approach, 6e, Mason, OH: South-Western Cengage Learning

Shimp, T. (2010) Integrated Marketing Communication in Advertising and Promotion, 8e. Mason, OH; Cengage Learning

Smith P.R. & Taylor, J., (2004) Marketing Communications, An Integrated Approach. London: Kogan Page

Yuxian, G., Deepender, R., & Moulee, S., (2007) The ingredients for successful advertising in China. Admap Magazine, (February). Retrieved from http://www.warc.com/ArticleCenter/ArticleViewer.asp?CType=A&AID==84664&PID...