Advertising Strategy

Session 7 Summer 2008

Ganesh Iyer

Advertising Planning Process

Target Market

Brand Positioning

Advertising Objectives Advertising Objectives Budget Decisions Budget Decisions Creative Strategy Creative Strategy Media Strategy Media Strategy

Campaign Evaluation Campaign Evaluation

Ganesh Iyer

Advertising Objectives

Create awareness for new products Inform consumers

of product features and benefits price changes Important for building primary demand

Persuasion
Build brand preference or change buyer perceptions especially important for building demand in competitive markets.

Reminder advertising: maintain top-of-mind awareness

Ganesh Iyer

Hierarchy of effects Communication Process

Awareness

Interest

Liking, Preference

Purchase, Action

Ganesh Iyer

Creative Strategy

Develop the USP unique selling proposition or the Creative Hook

Unique Selling Proposition q Translates brand positioning into a compelling message.

q

Objective is Memorability

Ganesh Iyer

Creative Strategy: Emotional vs. Rational Appeal

Emotional = appeal to psychological, social or symbolic needs. Pull at the consumers heartstrings Rational = provide information about functional and utilitarian aspects of the products. Shift towards emotional execution strategy in the later part of the product lifecycle Intense competition and proliferation of substitutable products (Michelin) Critical to increase Product involvement http://www.youtube.com/watch?v=sIkQRXkpwQI http://www.youtube.com/watch?v=SdPLf3FoInE
Ganesh Iyer

Taxonomy of Emotional Appeals

Fear appeal q can be an effective motivator but has the danger of alienating consumers
Show the consumer how to avoid the problem. Provide concrete supporting information

Ganesh Iyer

Taxonomy of Emotional Appeals

Humor
Memorability device. Humor should not clutter the product benefits. Execution detail: Show consumer how to avoid the problem. Pre-test to check if consumer
i) recalls product benefit ii) Attitude_product versus Attitude_ad = will the message be persuasive and will the product be taken seriously.

http://www.youtube.com/watch?v=kVCGBohc20k&mode=related&search= http://www.youtube.com/watch?v=f3mXaATLeRM http://www.youtube.com/watch?v=zV-yGp4l8B8

Fantasy
seen often in cosmetics advertising http://www.youtube.com/watch?v=r1g5qcKcVCM
Ganesh Iyer

Types of Rational / Informational Appeal

Technical Expertise or Scientific Evidence: (CrestLook ma no cavities) Comparative: Product features vs. competition (Nike vs. Reebok)
http://www.youtube.com/watch?v=xhiyDQNmEjY
q

Advantages High ability to get attention Helps in competitive positioning Disadvantages Advertise the competition. Makes competition more salient. Can use only if there is clear objective superiority for the advertised attribute.

Ganesh Iyer

Media Decisions

Define the target market.

Quantitative Measures
q

Reach: the percentage of people in the target market who are exposed to the ad campaign during the defined time duration 70% of the target market during the first three months of the campaign Frequency: A measure of how many times an average individual in the target market who have been reached .

Ganesh Iyer

Media Decisions
Advertising Exposure
q q

Gross Rating Points = 70(Reach) 4(Frequency) = 280 GRPs 1GRP = 1 exposure to 1% of the audience.

Qualitative Measures q Impact; is the qualitative aspect of the medium

Newsweek vs. The National Enquirer Sports illustrated vs. Time for tennis racquets
q

Trade-off between reach and frequency Pulsing vs. Continuity

Pulsing most critical for new products. Why? Continuity needed when faced with intense competition

Ganesh Iyer

Message

Good advertising creative strategy translates the brands positioning statement into a persuasive and memorable message. A great creative will provide lasting impact even if advertising budgets are constrained. How you say it is as critical as what you say

Ganesh Iyer

Analysis Framework
First mover advantages

Company Analysis Marketing Myopia

Perceptual mapping

Competitor Analysis

Customer Analysis
Positioning Segmentation

Marketing Strategy
Pricing process Pricing and innovation (ODI)

Marketing Orientation

Product Price

Branding Product Line Strategy (Cambridge)

Promotion
Direct marketing (Calyx)

Place

Going to market (Goodyear)

Market
Ganesh Iyer