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Integrated

CommunicationsPersonalSellingTrade

ShowsAdvertisingDirectMarketingSalesPromotionPublicityCProductPriceDistributionPromotionLearningObjectivesTounderstandtheroleofadvertisinginmarketingstrategyToreviewthestepsindevelopinganadvertisingcampaignTodescribecreativeadvertisingplatformsTodiscussthecharacteristicsofmassmedia

Advertisingispaidfor...(((“Noise”)))(((“Noise”)))U.S.AdSpending

(inbillions)Internet$9.6$12.6$16.0BroadcastTV$43.1$43.947.2Cable&SatelliteTV$18.9$21.7$24.3Newspapers$52.1$54.0$56.2Cable&SatelliteRadio$20.0$20.53$21.2ConsumerMagazines$12.1$12.7$13.5Source:Veronis

SuhlerStevensonCommuincationIndustryForecast,2005,citedinMarketingNews,15July2006,pg.32Medium2004200620052007$20.0$48.2$26.8$58.1$22.1$14.4$190bilin07ModelfordevelopinganAdvertisingCampaignMarketingCreativeMarketingAdCampaignStep#1DeveloptheTargetAudienceProfileWho,what,when,whereMotivations?Need/wantintensity?Intensityof(Need)WantChangesAsGapSizeWidensDesiredStateExistentStateProblemRecognitionTargetAudience:PushStrategyasupplierpromotestochannelintermediariesto“Push”theproducttoconsumers.Producer Wholesaler Retailer CustomerPromotesToInformation($)Information($)Information($)ProductflowNoiseTargetAudience:PullStrategyaproducerpromotestotheultimatetargetaudiencetostimulatedemandand“Pull”theproductthroughthechannelofdistribution.Producer Wholesaler Retailer CustomerPromotestoOrdersOrdersRequestsInformation($)NoiseStep#2AdvertisingObjectivesMeasurabilityPrecision(When(Timing),Where,How,…)Behavioral(Performance)Sales$,Marketshare%,storevisits,etc.HierarchyofCommunication(Cognitive)Awareness(AIDA)InterestDesireActionI’LLBUYIT!AwarenessInterestActionDesire0510152025303540SALESIntroductionPrimarydemand:InformGrowthExtensiveadvertisingspending:PersuadeMaturityReminder&emotionalads:RemindDeclineMinimalifanyAdObjectives&theProductlifeCyclePromoteProductclassSelectivebranddemandStep#3CreatingtheAdvertisingPlatformTHEADVERTISINGPLATFORMisTHEBASICMESSAGEAPPEALORSELLINGPOINT...MessageTheme(s)Institutional...AdvocacyProductDifferentiation...ProblemSolutionMotivatingaPersontoAct(purchase)ismediatedby:Economicsabilitytobuy,rationalmotivesMarketingMix(4P’s)ProductRisksSocial&PsychologicalFactorsintensityofwant(satisfactionw/brands)Involvementlevel,socialpressureemotionalmotivesNoiseCompetitiveComparativeInstitutional(image)Reminder/ReinforcementTypesofAdvertisingEchostarMarketingCampaignAppliedMarketingComparativeadvertising

–relatesasponsoredbrandtoacompetitor’sbrandononeormoreproductcategories.

Thisaddiscouragessmoking-anundesiredbehaviorAdvocacyTwoTypes:DirectActionads:stimulateimmediateactionIndirect–actionadsstimulateactionoverthelongrunProductAdvertisingProductInstitutionalAdvertisingObjectives:PromoteorganizationalimageStimulateproductcategorydemandBuildindustrygoodwillCauseRelatedMarketingCauserelatedmarketingis:Linkingafirm’sproducttoaparticularsocialcauseonanongoingorshort-termbasis.1.3millioncasesofcancerwerediagnosedlastyearwithprostatecancerat220,900&breastcancerat212,600.TheonlineAutomobilemarketerAutobytelInc.signedonthisyearasanofficialsponsoroftheKomenOrangeCountyRacefortheCure.CauserelatedsponsorshipisontheriseOverthepastfiveyears,corporatespendingonbreastcancerrelatedmarketinghasgoneup57%.$500,000,000$600,000,000$700,000,000$800,000,000$900,000,000$1,000,000,000199920032004CauseRelatedSpendingMajorCausesBreastCancercauseshavethemostadsponsorships.Prostatecanceris#2theme.AnexampleistheLivestrongbraceletswornbyLanceArmstrongandawiderangeofcelebrities.BreastCancersCorporatePartnersWNBA,LPGA,DSWShoeWarehouseLeanCuisine,MasterfoodsUSAQuiltedNorthernUltraWhyBreastCancerCompaniesliketousetheirmarketingbudgetonbreastcancerbecausewomenmakethemajorityofhouseholdbuyingdecisions.Breastcanceristheleadingtypeofcanceramongwomen.Thereforeithasamuchwiderappealandalargertargetmarket.ObjectiveandtaskPercentage-of-salesComparative-parityMarginalapproachAll-you-can-affordMethodCombinationsCooperativepromotionStep#4DeterminingtheAdvertisingBudgetPercentageofSales

Share-of-Market/Share-of-VoiceTheCoolingEconomyChillsAdvertisingIndustrySpendingTVAdspendingdecrease3-4%in2000RadioAdSpendingfell15%inJanuaryMcGraw-Hill’sBusinessWeekadpagesfell43%inFebruaryAOLTimeWarnerInc.’sPeopleMagazinefell12%WashingtonPostsCo.’sNewsweekpagesfell20%Step#5DevelopingtheMediaPlanMediaExposure:GRP=ReachxFrequencyMediaSelection,Costs&Schedules-Radio/TV/Internet/Newspaper/etc.In-storemediaOther:TransitHowtoCalculateCPMTimemagazinehas10,460,000readersperedition.Afour-colorpagecosts$42,000.(orTVcommercial)=$4.02Mediaplannerstrytoselectthemediathatwillexposethelargesttargetaudienceforthelowestpossiblecost.CPM= Costofpagex1,000 TargetaudiencereadersCPM= $42,000x1,000 10,460,000MediaConsiderationsFrequency?Reach123456789106,0005,0004,0003,0002,0001,000Reachmanypeopleonce,orfewerpeopleseveraltimes?ReachFrequencyScheduleContinuityDurationofaadvertisingmessageoveragiventimeperiodBroadcastMediaAdvantages/DisadvantagesTelevision:+Show&tell,selectivity,penetration-Expensive,perishable,clutter,videotapeskippingRadio:+Selectivity,flexibility,inexpensive-Fleeting,clutter,novisual,backgroundmediaAveragetime(hours)spentperweekwatchingTVperhouseholdTVAudienceMeasurementRatingServicesDefiningTelevisionMarketsDMADayparts9am-4pm Daytime4-5:30pm EarlyFringe5or5:30–7:30 EarlyNews7:30-8pm PrimeAccess8–11pm Prime11–11:30 LateNews11:30pm–1am LateFringeLocal,Network,SpotBuys,Syndication,infomercialsAudienceMeasurement&buyingadplacementsTVHouseholds(TVHH)HouseholdsusingTV(HUT)Rating= TVHHtunedtoaspecificprogram TotalTVHHinAreaAudienceShare&efficiency(CPM)CPP=Cost RatingCPM= Cost ThousandsofPeopleNegotiatePriceExamineReach&Frequency“theconsumerisalmostnumbtoalotofthetraditionalDetroitandroadmarketingcampaigns.”JimSchroer,presidentofmarketingandsalesforChrysler.TVadvertisingisawasteof$$$...WSJ31May2001ChryslerDrivesAwayFromFocusonTV“MoneyToBeMade”(000)TradepromotionRadioAdvertisingMorepeoplelistentoradiothanothermediaBuybyStationFormatNetwork,Spot,LocalRatesbasedondayparts6-10am MorningDrive10am-3pm Daytime3pm-7pm AfternoonDrive7pm-midnight Nighttimemidnight–6am AllNightBuyingRadioAdvertisingAveragequarter-houraudience(AQH)Ratingpoints

=%ofpopulationlisteningina15minuteperiodShare

=RadioStationAudience/TotalAudienceSchedule=total#ofratingpoints(GRPs)DuplicatedUnduplicatedCume=total#ofdifferentpeopleLetters,billinsertsFaxadvertisementsPhoneDirectMarketingBannerAdsRichMediaEmailNewslettersSponsorshipCompanyWebSiteOn-lineAdsPrintMediaAdvantages/DisadvantagesNewspapers:+Geo.selectivity,flexibility,editorialsupport-Lackofpermanence,poorqualityofprint,limiteddemographicsMagazines:Allaboveplus:+Broadselectivity,long-lifead,picturequality-Longleadtime,colorexpensiveVogueTheSeptember2003issuewasthemostadrichSeptemberissueofthemagazinesince1989andthe4thlargestever.Theissueweighed4poundsand8ouncesThomasA.Florio,VP&PublisherinNY,laughedthat“wedoitbythepoundnow;wedon’tdoitbythepage.”TheNewspaperIndustry(2001)21.7%ofalladvertisingdollarsRatecard:RunofPress(ROP)PricingPreferred-PositionRateNearly6in10readadailynewspaperOver56millionpaperssolddaily,2.1readerspercopyMorethan1000newspaperWebsitesWiththedigitalage,decliningnewspaperreadershipisamajorsocioculturaltrend.

TheTimesAreChanging,companiesAreCuttingTheirAdBudgetsTwodecadesago,42%oftotalmarketingdollarsspentonpackagedgoodswenttogeneraladvertisingTodayonly12%ofanaveragepackagedgoodsmarketingbudgetgoestogeneraladvertisingAChillHitsMadisonAvenue

Whatdoesthismean?AdvertisersarelookinginnewdirectionstoturnprofitsForexample,Omnicomhasbranchedintonewfieldssothatadvertisingnowmakesupjust44%ofitsrevenuesThefastestgrowingdivisionsaredirectmarketingandpublicrelationsDirectMediaAdvantages/DisadvantagesInternet/Interactive:+Measurement,lengthycopy,interactive,inexpensive-Nouniversalaccess,unknownaudienceDirectmail/Catalog:+Selective,measurement,lengthycopypossible,readergovernsexposure-Expensive,noeditorialsupport,limitedinterestDirectMediaAdvantages/DisadvantagesPoint-of-Purchase:+Impulsebuying,“selling”,unifiesproduct&ad-Placementdifficulttocontrol,clutter,limitedcreative&customeruseOutdoorads+Highreach&frequency,selectivity,impact,inexpensive-Brevity,image,locationchoiceMoscow,CityofBillboards

Building-SizeAdsTransformRussianCapitalIntoversionofNewYork’sTimesSquare

GuyChazan,WallStreetJournalJuly18,2005PreparedbyScottMillerWhereintheworldisRussia?Takingalookatthenumbers:IncreasedconsumerspendinghascreatedtheworldsfastestgrowingadvertisingmarketinRussia.Expectationsofa30%jumpinadvertisingspendingthisyearwillbringtheindustryto$5billion,upfrom$3.8billion.BrandsadvertisedoutdoorinRussianincreasedfrom8,100in2001to15,600lastyear.MoscowNYC’sTimesSquareReasonsforoutdoormediumBusinesspeopletendtowatchlessTVandreadfewernewspapersthaninWesterncountries.DriversinMoscowarefrequentlystuckintraffic.Sovieteracityplanningcreatedtheperfectcityfordisplayoflargeads/propaganda(MayDaycelebrations).IncreasinglystrictregulationsforTVadspromotingcigarettesandbeer.OutdoorAdvertisingBillboards--NeonSigns--TVScreensPaintedWallsonbuildings--BannersStep#6TheAppeal:

WhattoSayWhatproductoffersWhycustomershouldbuySexappealLifestylecompatibleProblemsolvingThemesPositioningPart2of2Step#6Creatingthe

AdvertisingMessageHeadlinesCopyStoryboardArtworkIllustrationsLayoutIdeasCreativitySpokespersonEmotionaltoneSituationHowtosayit??EffectiveAdvertisingCopyAppealVisualAppealHowtoSayIt:

ExecutionoftheappealStorylineProductusesProblemsolutionsSliceoflifeDemonstrationComparativeadvertisingTestimonialLifestyleStilllifeAssociationMontageJingleMessagetheme:ToportraythedrinkasItalianpassioninabottleReasonforTVads:thedesiretotalktoabignumberofpeopleinashortperiodoftimeNationalcablenetworks..selfimposedabanonTVadsforhardliquorLocalaffiliates..arewillingtobroadcasttheadsAtlanta,Boston,Chicago,S-FranBacardiBringsOutBottleinCableTVAdforAmarettoWSJ30April01Expenditure$26.5milliontopromote

BarcardiRumDewar’sScotchwhiskyBombaySapphireginOnly$200,000cable-TVadvertisingRestprintandothermedia$1.1milliontopromoteoncableTVthisspringPerceptualAdaptationExposuretostimuliovertimeresultsinadiminishingresponse(effect)(Time)Exposure0SelectivePerceptionInfluencesTheindividual’sphysicalabilitiestoexperiencesensationMentalprocessesandintelligencelevelsPersonality(extroversionintroversion)ContextinwhichthestimuluswasencounteredTheperson’smoods,needsandwantsCommercialZappingHeaviestduringeveningnewsandlatenightprogramming.Ashighas50%ofsporteventcommercialshavebeen“Zapped”.Also:Thosemostlikelytogetanddosomethingduringcommercialsare:youngviewersmembersofhigherincomehouseholdsStep#7EvaluatingAdvertisingEffectivenessPretests-FocusGroups-ConsumerJuryPosttests-RecognitionTest-UnaidedRecallTest-AidedRecallTestSalesBefore-AfterMoneyWellSpent?GMis

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