Advertising

FX Setiyo Wibowo
Advertising
 Advertising is any paid form on nonpersonal
presentation and promotion of ideas, goods, or
services by an identified sponsors.
 Five majors decisions in developing an advertising
program (The Five Ms) : Mission, Money,
Message, Media, Measurement.
Five Ms
 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 results be
evaluated ?
Figure : Five Ms of Advertising
Advertising Objectives
 Informative advertising
 Persuasive advertising
 Reminder advertising
Deciding On The Advertising Budget
 How does a company know if it will be spending
the right amount ?
 If it spends too little, the effect will be negligible
 If it spends too much, then some of the money
could have been put to better use
Setting the advertising budget
 Stage in the product life cycle : New product typically large receive large
advertising budgets to build awareness and to gain consumer trial
 Marketshare and consumer base : High-market-share brands usually require
less advertising expenditure as a percentage of sales to maintain their share
 Competitioon an clutter : in a market with a large number of competitors and
high advertising spending, a brand must advertise more heavily to be heard.
 Advertising frequency : The number of repetitions needed to put across the
brand’s message to consumers has an important impact on the advertising
budget
 Product substituability : Brands in a commodity class (cigarettes, beer, soft
drinks) require heavy advertising to establish a differential image.
Advertising is also important when a brand can offer unique physical benefits
of features.
Choosing The Advertising Message
 Advertisers go through four steps to develop a
creative strategy : message generation, message
evaluation and selection, message execution and
social responsibility review.
Deciding on Media and Measuring
Effectiveness
 The steps are deciding on desired reach, frequency,
and impact; choosing among major media types;
selecting specific media vehicles; deciding on
media timing; and deciding on geographical media
allocation.
 Media selection involves finding the most cost-
effective media to deliver the desired number of
exposures to the target audience.