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Advertising:

Paid mass non-person communication

Product Advertisements

Product advertisements: are advertisements that focus on selling a good or service and

which take three forms:(1) pioneering (or informational), (2) competitive (or persuasive),

and (3) reminder.

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Dial SoapWhat is the type and purpose of this advertisement?

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Institutional Advertisements

Institutional advertisements:are advertisements designed to build goodwill or an image for an organization rather than promote

a specific good or service.

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Institutional Advertisements

• Advocacy

• Pioneering Institutional

• Competitive Institutional

• Reminder Institutional

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Chevron and BridgestoneWhat is the type and purpose of each advertisement?

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https://www.facebook.com/photo.php?v=461220498290&set=vb.431744650466&type=3&theater

http://www.bridgestonetire.com/about/news/tv-commercials#

Got Milk? and U.S. ArmyWhat is the type and purpose of each advertisement?

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http://milkdelivers.org/got-milk-campaign/

World Wide Fund, Candie’s, and GeicoWhat is the appeal and purpose of each advertisement?

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http://www.youtube.com/watch?v=kWBhP0EQ1lA

http://www.geico.com/about/commercials/#.UozzWcSfjfs

“Use facts, not fantasy. Don’t sermonize; advertise.”

“If an ad doesn’t sell, if it doesn’t ultimately ring the cashregister, it is a waste of money.”

Jeffrey Fox

Advantages:

1.Cost/contactCPM = (cost/unit)/reach X 1000

Example: Jay Leno: $51,000/ 30 sec reaches 5 million

Super Bowl: $3.5 mill/ 30 sec reaches 111 million

CPM for Leno = $ 10.20CPM for SB = $ 31.50

Advantages:

1.Cost/contact2.Repetition

Two-Factor Theory

+

-

Valence

Advantages:

1.Cost/contact2.Repetition 3.Versatility

Advantages:

1.Cost/contact2.Repetition 3.Versatility

4. Atmosphere

http://www.livingroomcandidate.org/commercials/1964

http://www.livingroomcandidate.org/commercials/1984

Advantages:

1.Cost/contact2.Repetition 3.Versatility

4. Atmosphere5. Prestige

Prestige factor is very odd:

Disadvantages:

1.Cost Super Bowl is still $6-7 mill/ minute!!

Disadvantages:

1.Cost2.Flexibility

Disadvantages:

1.Cost2.Flexibility3.Clutter

Disadvantages:

1.Cost2.Flexibility3.Clutter Also a problem with repetition

Disadvantages:

1.Cost2.Flexibility

3.Clutter4.Credibility “Alternative Explanation”

Disadvantages:

1.Cost2.Flexibility

3.Clutter4.Credibility “Alternative Explanation”

5.High Waste

Disadvantages:

1.Cost2.Flexibility

3.Clutter4.Credibility “Alternative Explanation”

5.High Waste6.Lack of Action

Disadvantages:

1.Cost2.Flexibility

3.Clutter4.Credibility “Alternative Explanation”

5.High Waste6.Lack of Action

7.Problem measuring effectiveness

DEVELOPING THEADVERTISING PROGRAM

1. Identifying the Target Audience

2. Specifying the Advertising Objectives

3. Setting the Advertising Budget

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DEVELOPING THEADVERTISING PROGRAM

4. Designing the ads

Humorous appeals

Increases credibility

Increases memory

Increases likability

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DEVELOPING THEADVERTISING PROGRAM

4. Designing the ads

Fear appeals

Protection racket

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http://www.youtube.com/watch?v=ivAx1zgdWoM

DEVELOPING THEADVERTISING PROGRAM

4. Designing the ads

Sex appeals

Careful!

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http://smallbusiness.chron.com/examples-sex-appeal-advertising-works-60861.html

DEVELOPING THEADVERTISING PROGRAM

5. Selecting the right media

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SELECTING THE RIGHT MEDIA

Basic Terms

• Reach

• Rating

• Frequency

• Gross Rating Points (GRPs)

• Cost per Thousand (CPM)

= Reach × Frequency

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Factors to Consider

• Buyer Turnover

• Forgetting Rate

• Purchase Frequency

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FIGURE 15-1FIGURE 15-1 Television, direct mail, and newspapers account for more than 65% of all advertising expenditures (in $millions)

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FIGURE 15-2FIGURE 15-2 Advertisers must consider the advantages and disadvantages of the many media alternatives

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Television

• Out-of-Home TV

• Online TV (OTV)

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Television

• Wasted Coverage

• Cable and Satellite TV

• Infomercials

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• Regional Issues

Magazines

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Radio

• Satellite Radio • Drive Times

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Newspapers

• Falling Circulation & Ad Revenue

• New Types of News Organizations

• Online and Mobile

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Yellow Pages

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• Paid Search

• Rich Media

Internet

• Banner/Display Ads

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Outdoor

• TransitAdvertising

• Billboards

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FIGURE 15-AFIGURE 15-A Alternative structures of advertising agencies used to carry out the advertising program

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EXECUTING THEADVERTISING PROGRAMPRETESTING THE ADVERTISING

Pretests

• Portfolio Tests

• Theater Tests

• Jury Tests

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Posttests

Aided Recall Unaided Recall

Attitude Tests Sales Tests

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