Chapter 14 – Advertising and Digital Communications.docx

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McMaster University
Grant B Mc Clelland

Chapter 14 – Advertising and Digital Communications Advertising  Paid, nonpersonal communication through various media about a business firm, not-for- profit organization, product, or idea by a sponsor identified in a message that is intended to inform, persuade, or remind members of a particular audience  Nonpersonal promotions  develop promotional mixes and marketing communication strategies  Advertising most visible form  used by marketers to reach certain groups of people with messages designed to appeal to business firms, not-for-profits, or ultimate consumers. Types of Advertising  Product Advertising  nonpersonal selling of a particular good or service, the type people picture when they think of promotions .  Institutional Advertising  promotes a concept, an idea, a philosophy, or the goodwill of an industry, company, organization, person, geographical location, or government agency.  broader concept than corporate advertising  nonproduct advertising sponsored by a specific profit-seeking firm  closely linked to public relations Advertising Roles/Objectives  Advertising must create interest in the Brand by:  Reinforcing existing attitudes about an Established Brand  Changing attitudes about an Existing Brand  Creating an overall impression about a new product  Giving the consumer a Reason to Act Objectives of Advertising  Informative advertising  seeks to develop initial demand for a good, service, organization, person, place, idea, or cause.  It’s a common method used in promoting any new market entry, because at the introductory stage the goal is simply to announce availability.  Persuasive advertising  designed to increase demand for an existing good, service, organization, person, place, idea, or cause.  It’s a competitive method suited to the growth stage and early maturity stage of the product life cycle.  Reminder advertising  strives to reinforce previous promotional activity by keeping the name of the good, service, organization, person, place, idea, or cause in the minds of the public.  It’s common in the latter maturity stage and through the decline stage of the product life cycle.  Advertising attempts to condition consumers to adopt favourable views toward a promotional message.  The goal of an ad is to improve the likelihood that a consumer will buy the good or service.  To get the best value for their investment, firms must first determine their advertising objectives.  Reasons for using ads:  To enhance consumer perceptions of quality in a good or service  To increase customer loyalty  To encourage repeat purchases  To protect themselves during a price war  To show their superiority in order to raise prices without losing market share Advertising Objectives: brand awareness (levels)  Aided awareness  recognition  Unaided awareness  recall  Share of mind awareness  Top of mind awareness Advertising Strategies  effective advertising strategies accomplish at lease one of three tasks:  Informing  Persuading  Reminding  choosing a strategy is to develop a message that best positions a firm’s product in the mind of the audience Comparative Advertising  emphasizes messages with direct or indirect promotional comparisons between competing brands.  Firms whose products are not the leaders in their markets often favour this format.  Today regulators actually encourage it, before frowned upon  keep the marketplace competitive, keep consumers better informed, and keep prices low. Celebrity Testimonials  Use of celebrity spokespeople for products  Advantages:  Improved product recognition  Ability to reach consumers of other cultures  A celebrity testimonial generally succeeds when the person is a credible source of information for the product being promoted  Appropriately matched celebrities improve the product’s believability, recall, brand recognition, and brand equity  Disadvantages of using celebrities:  A celebrity who endorses too many products may create marketplace confusion.  If a celebrity is involved in a scandal or has legal problems, response to ads is affected. Retail Advertising  includes all ads by retail stores that sell products directly to the consuming public.  accounts for a good portion of total ad expenditures, its effectiveness varies widely  Consumers may respond with suspicion or disbelief—source, message, and shopping experience seem to affect consumer attitudes toward these ads.  cooperative advertising  a retailer often shares advertising costs with a manufacturer or wholesaler, improving dealer relations and strengthening vertical links in the marketing channel. Interactive Advertising  Involves two-way promotional messages transmitted through communication channels that induce message recipients to participate actively in the promotional effort  e-commerce and the Internet  interactive kiosks = creates a dialogue between markets and individuals  gain and hold a shopper’s interest in an environment where shoppers like to be in control.  provides information to help consumers throughout the purchase and consumption processes  Interactive advertising adds value by offering the viewer more than just product-related information or promotion of a brand. Cross Promotion  A technique in which marketing partners share the cost of a promotional campaign that meets their mutual needs  Joint efforts between established brands create greater benefits for both organizations. Creating an Advertisement  With so many dollars at stake, companies must create effective and memorable ads that increase sales and enhance a firm’s image.  pinpointing goals that ads need to accomplish.  Common goals include educating the public about a product’s features, enhancing brand loyalty, or improving consumer perception of the brand.  These objectives should guide the design of the ad.  Research can identify what appeals to consumers, and ads can be tested with potential buyers before committing funds.  marketers have to find a creative way to demonstrate these often intangible images and convey their benefits Creative Process Overview 1. Marketing Strategy 2. Copy Strategy 3. Selling Idea(s) 4. Scripts 5. Testing/Production  Marketing Strategy - Includes Target Market definition, Positioning and Benefits. = General Brand Marketing Blueprint.  Copy Strategy - Includes target Market definition and Benefits. Reflects the Positioning of the Brand = an agreed to important document that initiates Creative development by Agency.  Selling Ideas-General, consumer friendly ideas of how to translate/visualize the Copy Strategy.  Form the basis of an individual commercial.  Scripts – Drafts of commercials presented to Client on paper with simple accompanying visuals.  If accepted by Client a script will be fine tuned for testing and/or final production. Translating Advertising Objectives into Advertising Plans  Objecteivs  advertising plans  Marketing research helps guide choices in technical areas such as budgeting, copywriting, scheduling, and media selection.  Posttests measure the effectiveness of an ad and provide feedback on any needed adjustments  positioning strategy  aims at creating a desired image in the consumer’s mind and distinguishing the product from those of competitors.  Advertising then communicates the desired position by stressing certain characteristics— features, price, quality, applications, user needs, or product classes, and competitors’ shortcomings. Advertising Messages  Advertising campaign — Series of different but related ads that use a single theme and appear in different media within a specified time period Advertising Appeals  Tone of the ad  Can be practical, emotional, serious/funny, informative  Several types of appeals can be based on:  Fear o implies that incorrect buying decisions could lead to illness, injury, or other negative consequences; but can backfire if viewers tune it out as too strong or unbelievable  Humour o creates a positive mood, can improve audience awareness and recall and enhance brand image; but can distract focus away from the product, lose effectiveness quickly, or annoy certain consumers or cultural groups  Sex o attracts attention but boosts recall only if the appeal is appropriate to the product, can put o
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