Advertising and

Lesson 4: Promotion Research

and Advertising
Planning
 Learning objectives

• Discuss types of research advertising and promotion

planners rely on to develop effective advertising and IBP.
• Identify key components of developing both a domestic
and international advertising and IBP plan.
 Key Terms

• Developmental research
• Copy research
• Results-oriented research
• Concept Testing
• Audience Profiling
• Real Usage
• Focus groups
 Contents

4.1. Advertising and Promotion Research

4.2. Planning Advertising and Integrated Brand
Promotion
4.3 Advertising Planning: An International Perspective
 Assignment 2:

Select an advertising / advertising campaign (was failed)

and analyze the reasons for that failure (cultural/ legal
barriers…)
4.1 Advertising and Promotion Research

4.1.1 Advertising and IBP Research

 Used to assist in determining market segments
 Plays a key role in helping creatives understand the
audience
 Used to make go/no go ad decisions and when to pull
ads
 Used to evaluate agency performance
4.1 Advertising and Promotion Research

4.1.1 Advertising and IBP Research

 Developmental research (before ads are made)
 Copy research (as ads are begin finished)
 Results-oriented research (while the ads are running)
4.1 Advertising and Promotion Research

4.1.1 Advertising and IBP Research

 Stage One: Developmental Advertising and
IBP Research
 Concept Testing: Designed to screen the quality of new ideas or
concepts.
 Audience Profiling: Creatives need to know as much as they can
about the people to whom their ads will speak. Profiles present the
creative staff with a fine-grained picture of the target audience, and
its needs, wants, and motivations.
 Real Usage (what the consumer really wants): Qualitative
research methods are being used to discover how consumers really
use brands and why.
 Focus groups: Brainstorming session with target customers (6-12)
to come up with new insights about the brand. Focus groups offer
the opportunity to gather in-depth data.
4.1 Advertising and Promotion Research

4.1.1 Advertising and IBP Research

o Stage One: Developmental Advertising and
IBP Research
 Internal company sources
 Government data sources
 Commercial sources
 Professional publications
 The Internet
4.1 Advertising and Promotion Research

4.1.1 Advertising and IBP Research

o Stage Two: Copy Research
 Research on the actual ads
 Used to judge the ads and promotion text finished or
unfinished
 Often referred to as “evaluative research”
4.1 Advertising and Promotion Research

4.1.1 Advertising and IBP Research

o Stage Two: Evaluative Criteria and Methods
in Copy Research
1. “Getting It.”
 Communications Test: a test that seeks to discover whether
a message is communicating something close to what the
advertiser desired
2. What do they remember?
4.1 Advertising and Promotion Research

4.1.1 Advertising and IBP Research

o Stage Two: Evaluative Criteria and Methods in Copy
Research
Cognitive Residue
 Thought listings: a type of pretest message research that tries to
identify specific thoughts that may be generated by an
advertisement
 Recall: tests of how much the viewer of an ad remembers of the
message; they are used to measure the cognitive residue of the
ad; these are the standard cognitive residue test for print ads and
promotion
 Recognition testing: tests in which audience members are
asked if they recognize an ad or something in an ad; these
are standard cognitive residue test for print ads and
promotion
 Implicit memory measures
4.1 Advertising and Promotion Research

4.1.1 Advertising and IBP Research

o Stage Two: Evaluative Criteria and Methods in Copy
Research
3. Knowledge—consumer brand claim or belief
 Communication tests
 Surveys: consumers are asked to answer questions about the
advertised brand after the commercial.
4. Attitude Change
 Attitude Studies: people from the target market are
recruited, and their attitudes toward the advertised brand as well as
toward competitors’
 Resonance Tests : a method of obtaining customer feedback that
measures target markets' feelings and opinions about a company's
product, as well as that of the competing brand
5. Physiological Changes
 Eye Tracking
 Voice Analysis
6. Behavioral Intent
4.1 Advertising and Promotion Research

4.1.1 Advertising and IBP Research

 Stage Three: Results Oriented Research

1. Tracking Studies
 "track" the apparent effect of advertising and branded
entertainment over time; assess attitude change, knowledge,
behavioral intent, and self-reported behavior
 Direct Response: offer the audience the opportunity to place
an inquiry or respond directly through a website, reply card, or
toll-free phone number
 Inquiry/direct response measures through mail, phone,
internet
2. Estimated Sales Derived from Advertising
 Advertising and promotions differ greatly
 Internet is ideal given “click throughs”
 Multiple factors can effect sales
3. All-in-One Single Source Data
 Links shopping to media use through store scanners
 4.2 Planning Advertising and Integrated
Brand Promotion

4.2.1 The Advertising Plan and Its Marketing Context

Advertising Plan and Its Marketing Context
Marketing Plan

Ad Plan
Specifies thinking and tasks needed to conceive
and implement an effective advertising effort
 4.2 Planning Advertising and Integrated
Brand Promotion

4.2.1 The Advertising Plan and Its Marketing Context

Advertising Plan Components
Introduction

Situation Analysis

Objectives

Budgeting

Strategy

Execution

Evaluation
 4.2 Planning Advertising and Integrated
Brand Promotion

4.2.1 The Advertising Plan and Its Marketing Context

Advertising Plan Components

1.Introduction Executive summary

Overview

Historical context
2.Situation
Industry analysis
Analysis Market analysis
Competitor Analysis
 4.2 Planning Advertising and Integrated
Brand Promotion

4.2.1 The Advertising Plan and Its Marketing Context

o Advertising Plan Components: 3.Objectives
• To create or maintain brand awareness.
• To change consumer beliefs or attitudes.
• To influence purchase intent.
• To stimulate trial use.
• To convert one-time users into repeat purchasers.
• To encourage brand switching.
 4.2 Planning Advertising and Integrated
Brand Promotion

4.2.1 The Advertising Plan and Its Marketing Context

o Advertising Plan Components: Objectives

Quantitative benchmarks
Characteristics of Measurement methods and
Workable Objectives Criteria for success
Time frame
 4.2 Planning Advertising and Integrated
Brand Promotion

4.2.1 The Advertising Plan and Its Marketing Context

o Advertising Plan Components: 4. Budgeting

Percentage of sales
–Does not relate spending to objectives
Budgeting Share of market/voice
Methods –Likely to maintain “status quo” market share
Response models
–Depends on sales = advertising relationship
Objective and Task
–Preferred and strategic
 4.2 Planning Advertising and Integrated
Brand Promotion

4.2.1 The Advertising Plan and Its Marketing Context

o Advertising Plan Components: Budgeting

Determine cost Compare costs against

based on build-up industry and corporate
analysis benchmarks

•Production costs
•Ancillary costs
•Other promotion/IBP
Reconcile and
modify budget
•Reach
•Frequency
•Time frame
•Media
Determine time
Frame for payout
 4.2 Planning Advertising and Integrated
Brand Promotion

4.2.1 The Advertising Plan and Its Marketing Context

o Advertising Plan Components: 5. Strategy
 Brand name recognition?
– Repetition and frequency
– Rhyming games
 Trial Use Stimulation?
– Introductory offers
– Product guarantees
 Brand Switching?
– Value Propositions
– Product comparisons
 4.2 Planning Advertising and Integrated
Brand Promotion

4.2.1 The Advertising Plan and Its Marketing Context

Advertising Plan Components

Copy strategy
6. Execution Media plan
Integrated brand promotion

Criteria
7.Evaluation Methods
Consequences
4.3Advertising Planning: An International
Perspective

4.3.1 Overcoming Cultural Barriers

o Cross-Cultural Audience Research
 Economic conditions
 Demographic characteristics
 Values
 Custom and ritual
 Product use and preferences
 4.3 Advertising Planning: An International
Perspective

4.3.2 The Challenges in Executing Advertising Worldwide

 The Creative Challenge
 The Media Challenge
 The Regulatory Challenge
 4.3 Advertising Planning: An International
Perspective

4.3.2 The Challenges in Executing Advertising Worldwide

o The Creative Challenge
 Written and spoken language
 Translation difficulties
 Culture-bound “picturing”
 Assumptions and inferences
 Identifying cross-cultural icons and symbols
 4.3 Advertising Planning: An International
Perspective

4.3.2 The Challenges in Executing Advertising Worldwide

o The Media Challenge
 Availability and Coverage
– Too few options
– Too many options
– Global television now possible though

 Costs and Pricing

– Complex due to many options
– No set pricing in some markets
– Global coverage is expensive

 4.3 Advertising Planning: An International
Perspective

4.3.2 The Challenges in Executing Advertising Worldwide

o The Regulatory Challenge
What are the . . .
 Products that can be advertised?
 Appeals that can be used?
 Times that products may be promoted?
 Rules regarding foreign language use?
 Restrictions on using national symbols?
 Taxes levied against advertising?
 4.3 Advertising Planning: An International
Perspective

4.3.2 The Challenges in Executing Advertising Worldwide

o The Regulatory Challenge
 Can you use:
– Ads directed to children?
– Foreign languages in ads?
– National symbols in ads?

 Advertising may be taxed

4.3 Advertising Planning: An International
Perspective

4.3.3 Advertising Agencies around the World

• International Agency Options

Global Agency
 Greater integration
 Economies of scale
Local agency
 Highly localized
 Execution risks
International affiliates
 Local market expertise
 Cultural adaptation
4.3 Advertising Planning: An International
Perspective

4.3.4 Globalized versus Localized Campaigns

Global Campaigns Local Campaigns

Message Message 1 Message 2 Message 3

Market Market Market

A B C
 Q1

• In global advertising, company use one ad for all

markets
a) True
b) False
 Q2

• In Vietnam Advertising market, company can use

Foreign languages in Television ads
a) True
b) False
 Q3

What type of researches is done to get ideas for the new

ads
a. Developmental research
b. Copy research
c. Results-oriented research
d. None of above