You are on page 1of 18



Advertising: Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.
Marketing management must make four important decisions when developing an advertising program: Setting advertising objectives Setting the advertising budget Developing advertising strategy Evaluating advertising campaigns

The first step is to set advertising objectives

These objectives should be based on past decisions about the target market, positioning, and the marketing mix, which define the job that advertising must do in the total marketing program. The overall advertising objective is to help build customer relationships by communicating customer value.

An advertising objective is a specific communication task to be accomplished with a specific target audience during a specific period of time. Advertising objectives can be classified by primary purposewhether the aim is to inform, persuade, or remind.

Informative advertising

Persuasive advertising

Reminder advertising

Informative Advertising
Communicating customer value Telling the market about a new product Explaining how the product works Suggesting new uses for a product

Persuasive Advertising
Building brand preference Encouraging switching to your brand Changing customers perception of product attributes Persuading customers to purchase now Persuading customers to receive a sales call

Reminder Advertising
Maintaining customer relationships Reminding consumers that the product may be needed in the near future Keeping the brand in customers minds during offseasons

The second step is setting the advertising budget

Affordable Method Percentage-of-Sales Method Competitive-Parity Method Objective and Task Method

Affordable Method:
Setting the promotion budget at the level management thinks the company can afford.

Percentage of sales Method:

Setting the promotion budget at a certain percentage of current or forecasted sales or as a percentage of the unit sales price

Competitive-parity Method:
Setting the promotion budget to match competitors outlays.

Objective and task Method:

Developing the promotion budget by(1) defining specific objectives;(2) determining the tasks that must be performed to achieve these objectives; and(3) estimating the costs of performing these tasks. The sum of these costs is the proposed promotion budget.

The third step is developing advertising strategy

Advertising strategy: The strategy by which the company accomplishes its advertising objectives.

Advertising strategy consists of two major elements:

creating advertising messages selecting advertising media.

Creating the Advertising Message:

The first step in creating effective advertising messages is to plan a message strategyto decide what general message will be communicated to consumers. The advertiser must next develop a compelling creative concept.

Creative concept: The compelling big idea that will bring the advertising message strategy to life in a distinctive and memorable way. The creative concept will guide the choice of specific appeals to be used in an advertising campaign. Advertising appeals should have three characteristics:
First, they should be meaningful Second, appeals must be believable Third, appeals should also be distinctive

Madison & Vine:

A term that has come to represent the merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching consumers with more engaging messages.

Selecting Advertising Media

The major steps in advertising media selection are: deciding on reach, frequency and impact

choosing among major media types

selecting specific media vehicles deciding on media timing

Profiles of Major Media Types

Newspapers Direct


Magazines Radio


The fourth step is evaluating advertising effectiveness

Communication effects Sales and profits effects

The communication effects

Before the advertisement is placed, the advertiser can show it to consumers, ask how they like it, and measure message recall or attitude changes resulting from it. After the advertisement is run, the advertiser can measure how the ad affected consumer recall or product awareness, knowledge, and preference.

Sales and profits effects

One way to measure the sales and profits effects of ad is to compare past sales and profits with past advertising expenditures.

Another way is through experiments. For example, to test the effects of different advertising spending levels. More complex experiments could be designed to include other variables, such as differences in the ads pr media used.