MANAGING ADVERTISING By Agung Utama ADVERTISING Any paid
MANAGING ADVERTISING By: Agung Utama
ADVERTISING Any paid form of non personal presentation and promotion of ideas, goods, or services by an identified sponsor. Advertisers include not only business firms, but also museums, charitable organizations, and government agencies that direct messages to target publics.
HOW ORGANIZATIONS HANDLE ITS ADVERTISING? Organizations handle advertising in different ways: In small companies, advertising is handled by some one in the sales or marketing department, who work with an advertising agencies. A large company will often set up its own department, whose manager reports to the vice president of marketing. On global companies, use only a few agencies or even one that can supply global advertising.
DEVELOPING THE ADVERTISING PROGRAM The five major decisions in developing an advertising program, known as “The Five Ms” 1. 2. 3. 4. 5. Mission : what are the advertising objectives Money : How much can be spent Message : what message should be sent Media : what media should be used Measurement : how should the result be evaluated.
The Five Ms of Advertising Message Mission Measurement Money Media
MISSION Advertising objectives can be classified according to whether their aim : Informative advertising Persuasive advertising Reminder advertising Reinforcement advertising
Informative advertising: aims to create awareness and knowledge of new products or new features of existing products. Persuasive advertising: aims to create liking, preference, conviction and purchase of a product or services. Reminder advertising: aims to stimulate repeat purchase of products and services. Reinforcement advertising: aims to convince current purchasers that they made the right choice.
DECIDING THE ADVERTISING BUDGET There are five specific factors to consider when setting the advertising budget: Stage in the PLC Market Share Competition Advertising frequency Product substitutability
Stage in the PLC: new product typically receive large advertising budgets to build awareness and to gain consumer trial Market Share Competition : market share brands usually require less advertising expenditure as a percentage of sales to maintain share Advertising frequency: the number of repetition needed to put across the brands message to to consumers has an important impact on the advertising budget Product substitutability: brands in commodity class (cigarettes, beer) require heavy advertising to establish a differential image.
CHOOSING THE ADVERTISING MESSAGE Advertisers go through four steps to develop a creative strategy: 1. Message generation Advertiser have proposed different theories for creating an effective message, such as: Linking the brand to a single benefit Create a character that expressed the product benefits.
Message Evaluation and Selection Dick Twedt suggested that messages be rated on : 2. Desirability Exclusiveness Believability Message Execution 3. • • The message impacts depends not only on what is said, but often more important, on how it is said. Some advertising aim for rational potitioning like US ads typically present an explicit feature or benefit designed to appeal to the rational mind ; ‘gets clothes cleaner” and other for emotional positioning such as cigarretes Ads typically not showing the cigarretes but the beautiful scenes from nature aimed at producing an emotional association and response.
DECIDING ON MEDIA AND MEASURING EFFECTIVENESS Deciding on reach, frequency and impact Reach: the number of different persons or house holds exposed to a particular media schedule at least once during a specified time period Frequency : the number of times within the specified time period that an average person or household is exposed to the message. Impact: the qualitative value of an exposure through a given medium
Choosing among major media types : Target audience media habits : radio, tv are the most effective media for reaching teenagers. Product characteristics: media types have different potentials for demonstration, visualization, explanation, believability and color. Message characteristics: timeliness and information content will influence media choice Cost: TV is very expensive, newspaper is relatively in expensive.
Selecting The Media Vehicles The media planner must search for the most cost effective vehicles within each chosen media type. The advertiser who decides to buy 30 seconds of advertising on network TV can pay $150, 000 for a popular prime time show. The planner has to rely on measurement services that provide estimates of audience size, composition and cost. Deciding on Media Timing In choosing media, the advertiser faces both a macro scheduling and a micro scheduling. Macro scheduling : advertising problems in relation to seasons and bussiness cycle Micro scheduling : allocating advertising expenditures within a short period to obtain maximum impact.
Classification of Advertising Timing Patterns. Level Rising Falling Alternating Concentrated Continous Intermittent month
Deciding on Geographical Allocation A company has to decide how to allocate its allocation budget over space as well as over time The companies make “national buys” when it places ads on national TV networks or nationally circulated news The companies make “spot buys”: when it buys TV ads in just a few markets or regional editions of magazines The companies make “local buys” when it ads on local newspaper, radio, or outdoors sites.
EVALUATING ADVERTISING EFFECTIVENESS Communication Effect Research Seeks to determine whether is an advertising communicating effectively There are three major methods of advertising pretesting : The consumer feedback method: ask consumers for their reactions to a proposed ad such as the main message, belief on ads, etc. Portfolio test: ask consumers to view or listen a portfolio of advertisement, taking as much time as they need. Consumers are then asked to recall the ads and their content. Laboratory test : use equipment to measure physiological reactions – hearbeat, blood pressure, pupil dilation, etc to an ads.
Sales Effect Researcher try to measure the sales impact through analysing either historical or experimantal data. The historical approach involves correlating past sales to past advertising expenditures using statistical techniques.
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