Overview: Roles of Advertising
**Part of an Overall
Marketing Plan**
Kleppner textbook on Advertising — p. 37: “a message paid for by an identified sponsor and
usually delivered through some medium of mass communication” (media) …
“…is persuasive communication; it is not neutral; it not unbiased…”
“Advertising is what you pay for…
Publicity is what you pray for…”
Advertising Planning Factors
1) Audience Fragmentation
Brought about by cable TV proliferation in the 80’s and the spread of the Internet in the 90s.
"Majority Fallacy" was not a fallacy at one time
eg Dinah Shore commercial
Technological Convergence
* The Home Entertainment Center: TV, radio tuner, DVD player, game console etc all in one
place.
Economic Convergence
* Companies consolidating by buying more and more properties.
EG: Tribune Company, Clear Channel
Content Convergence
Reruns & Syndication
YouTube (free advertising)
Movie Trailers Dark Knight
Buzz on commercials
Flea Market Mini Mall
Ebooks & eNewsletters
Anyone can "publish" themselves and sell what they publish on the Internet
I Should Have Known Better
Email marketing
Sur La Table and others
Bringing all aspects of marketing, advertising, and public relations together in a cohesive form that
targeted consumers will recognize.
4) Globalization
Satellite communication and the Internet
eg: ebook sales around the world (postcard from Africa)
Advertising Planning Goals
The Who, What, When, Where, Why and How of It All
To sell something or to motivate someone to take action at the highest ROI (what).
1. Identifying Prospects (who) or targeting
the market
2. Consumer Motivations (why) determined by research and business
intelligence
3. Media Planning (how: the "big picture")
4. Ad execution (when and where)
Advertising Budgeting and ROI
How much to spend and how to spend it...
ROI: Return on Investment = $ Produced vs. $ Spent
Advertising Approaches
Exposure (traditional) vs. Engagement (current)
Exposure: The advertiser pays a fee for ad time or print space, regardless of the ROI of the ad.
Engagement: The advertiser pays only if a consumer takes a certain pre-set action.
Example: Internet advertising:
• Exposure: Pay-per-impression
• Engagement: Pay-per-click
Some infomercials pay on a “engagement” basis.
Components of Advertising Strategy
* Enhance the
BRAND
Branding differentiates similar products
Crucial for products with little inherent product differentiation: e.g. soft drinks, beer, cigarettes etc.
Brand
Management
Building
Brand Equity
*Demonstrating that product meets a Perceived Need…
*** Good branding example: The “Easy Button”
*** Bad branding example: Skydiver car commercial
Product Differentiation or Branding
The USP (Universal Selling Position)
(Wikipedia) The Unique Selling Proposition (also Unique Selling Point or USP) is a marketing concept that was
first proposed as a theory to explain a pattern among successful advertising campaigns of the early 1940s. It
states that such campaigns made unique propositions to the customer and that this convinced them to switch brands.
The term was invented by Rosser Reeves of Ted Bates & Company.
Today the term is used in other fields or just casually to refer to any aspect of an object that differentiates
it from similar objects.
Quizno’s Toasted Subs (forced Subway to start doing the same)
Sleep Number Bed / Tempurpedic
Advertising and the Value Gap
The difference between cost to produce something and the value a consumer places on it.
The larger the value gap, the safer the product is from competition.
Advertising can help create and reinforce the value gap.
-
Designer clothing
-
Perfume
“In many instances, the value of a brand has little to do with its objective worth.”
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