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11/5/13 Test Date

Advertising

primary means to communicate with customers
difficult to measure effectiveness
facilitates customers awareness and knowledge by providing information
persuade potential customer that brand is superior
short and long term effects

Goal of Advertising

AIDA: Attention, Interest, Desire, Action
e.g. infomercial

Goal of Advertising

should influence Cognition, Affect (attitudes) and Behavior

Product Life Cycle and Advertising

Intro = awareness and information
Growth = enhance positive attitudes
Maturity = remind customers
Decline = reductions in ad spending

Integrated Marketing Communications (IMC)

concept of designing marketing communications programs that coordinate all promotional activities

Steps to Develop an IMC

Identify the Target Audience
Specify the Promotion Objectives
Set the Budget
Select the Right Promotional Tools
Design the Promotion
Schedule the Promotion
Assess your Success

Dyadic Communication

designing advertising messages
has 3 components
1. source encodes a message
2. the message
3. receiver decodes message

Cognitive Ads

engage consumer's brain

One-Sided Cognitive Ads

express product's benefits
e.g. phone

Two-Sided Cognitive Ads

express pros and cons
e.g. pharmaceuticals

Noncomparative ad

One brand is mentioned and its features, attributes, image, etc. are conveyed

Comparative Ad

Brand and competitive brand are mentioned
Usually not done by market leaders
e.g. Pepsi vs. Coca-Cola

Drama Ad

A problem is depicted and the brand is featured as the solution

Advertising Appeals to...

Sex, Humor and Fear

Humor Ad

May break through clutter & be buzz-worthy
Usually not cost efficient
May remember joke not product
May insult viewer
May "wear out"

Fear Ad

Use negative emotions
For a fear appeal to be effective, the ad must provide a solution to reduce the consumer's fear

Subliminal Ad

placing fleeting or hidden images in commercial content in the hopes that viewers will process them unconsciously
Shown fast enough that viewers cannot point to the ad
Considered unethical and have never been shown to work

Image Ad

Are more abstract; used to convey an image
Great for positioning

Endorsement Ad

have brand spokesperson
Celebrity: positive association for spokesperson transfers to brand
Experts: gives credibility to the product because expert knows more than us
Regular People: gives credibility, they are like us and may not be getting paid

Media Decisions

How much to spend
When to schedule the ads
Which media to use

Percentage of Sales

Percentage is determined by prior years' sales or industry norms
Percentage is then adjusted depending upon this year's goals

Competitive Party

Determine what competitors are spending
Information is tracked by 3rd parties
In various industries, there is proportionality between ad spending and their incomes

Strategic Advertising Goal

Set a strategic goal(s) (awareness, attitude change, etc.) and then work backwards to determine how much should be spent to reach the goal
Advertising is viewed as an investment which will return sales and profits

GRP's

reach times frequency

Reach

The share of your target that has seen your ad at least once
goal is to expose as many of the target customers as possible

Frequency

The average number of times target saw the ad (within set duration)
depends on the goal

Continuous Advertisment

regularity in ad exposure

Occasional Advertisment

pop up from time to time

Seasonal Advertisment

infrequent and focused on the preterm season for the product

Day After Recall tests (DAR)

Ask random samples of households

Recognition Tests

When can't remember any more ads, ask

Mere Exposure

Sheer familiarity from repeated exposure may enhance viewer's favorability

Concept Testing

3-4 focus groups of 8-10 screened participants are shown the ideas of the ad
Ads are usually in preliminary development
Consumers' responses to ad, brand, etc. are evaluated

Copy Testing

Large random samples of consumers view a TV program and ads; after 30 minutes, consumers take survey
Ad evaluation items:
Stimulation, Information, Negative emotion, Transformation,
Identification

Advertising Tested via...

Concept and copy testing
Memory tests (recall and recognition)
Attitudinal tests, and
Behavioral measures

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