ADV 318J Study Guide - Midterm Guide: Nielsen Audio, Absolut Vodka, The Jay Leno Show
iPad + iBooks was very doubted to work in such a bad economy and coming off the
heels of selling 6 million first gen iPhones.
A 60 day waiting period for the iPad was set up to create buzz and to do some teaser
advertising. “Meet iPad.”
Three days before the iPad was set for release Apple, for free, had the product
integrated into an episode of Modern Family where all Phil wants for his birthday is an
iPad.
Uses TBWA/Chiat/Day for advertising.
Apple –high-stakes and high-profile advertising campaign (EX: check out Yahoo’s homepage.
For the past two days they’ve had a huge moving Java ad!)
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“There is no substitute for good teamwork between agency and client in the development of
compelling marketing and advertising plans.” – Steve Jobs
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Introductory Scenario: Polishing the Apple (Again and Again)
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Introduction, situation analysis, objectives, budgeting, strategy, execution and
evaluation.
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Advertising plan: specifies the thinking, tasks and timetable needed to conceive and
implement an effective advertising effort
Advertising plan is a direct extension of the marketing plan connected by the statement of
the brand’s value proposition (what the brand is supposed to stand for in the eyes of the
target segment derives from the firm’s marketing strategy, and will guide all ad-planning
activities).
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consists of an executive summary and an overview.
Executive summary: typically two paragraphs to a page in length, is offered to state the
most important aspects of the plan. This is what the reader should remember from the
plan, or the essence of the plan.
Overview: sets out what is to be covered and it structure the context
Introduction
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the client and agency lay out the most important factors that define the situation, and
then explain the importance of each factor.
Factors: demographic, technology, social and cultural, economic, and
political/regulatory
In the 1980’s credit cards were all about indulgence. (MasterCard slogan: “MasterCard,
I’m bored.”) Now it’s more about prudent spending.
Ethnocentrism: tendency to view and value things from the perspective of one’s
own culture.
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Self-reference criterion (SRC): unconscious reference to one’s own cultural
values, experiences, and knowledge as a basis for decisions.
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A decision maker’s SRC and ethnocentrism can inhibit his or her ability to sense
important cultural distinctions between markets.
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Cultural Context
Ad agencies need to really know the history of their client/the brand in order to
have any chance at succeeding.
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Historical Context:
Industry analysis: focuses on developments and trends within an entire industry
and on any other factors that may make a difference in how an advertiser
proceeds with an advertising plan.
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Industry Analysis:
Situation Analysis
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The Advertising Plan and Its Marketing Context
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Chapter 8: Planning Advertising and Integrated Brand Promotion
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proceeds with an advertising plan.
No industry faces more dramatic trends and swings in consumers’ tastes than the
food business.
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Market analysis: complements the industry analysis, emphasizing the demand
side of the equation. An advertiser examines the factors that drive and
determine the market for the firm’s product or service.
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Market analysis
Competitor analysis: an advertiser determines just exactly who the competitors
are, discussing their strengths, weaknesses, tendencies, and any threat they
pose.
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Competitor analysis
lay the framework for the subsequent tasks in an advertising plan and take many
different forms
Identify the goals of the advertiser in concrete terms.
Brand awareness: indicator of consumer knowledge about the existence of the brand
and how easily that knowledge can be retrieved from memory.
Top-of-the-mind awareness: represented by the brand listed first. Ease of retrieval
from memory is important because for many goods or services, ease of retrieval is
predictive of market share. (Aflac duck ads)
Purchase intent: determined by asking consumers whether they intend to by a product
or service in the near future. Intent is closer to actual behavior.
Trial usage: reflects actual behavior and is commonly used as an advertising objective.
Asking the consumer to try the brand, making sure the product lives up to the
expectations set by advertising.
Repeat purchase: (conversion) objective is aimed at the percentage of consumers who
try a new product and then purchase it a second time.
Brand switching: advertiser must neither expect too much, nor rejoice too much, over
a temporary gain.
Objectives
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Ad planners should begin with quantified measures of current status of market share,
awareness, attitude, or other factors that advertising is expected to influence
Establish quantitative benchmark
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Factors being measure must be directly related to objectives being pursued
Specify measurement methods and criteria for success
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Objectives should inlcude a statement of the period of time allowed for the desired
results to occur.
Specify a time frame
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Communications versus Sales Objectives
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in most cases a firm will rely on its advertising agency to make recommendations regarding
the size of the advertising budget, as they can range greatly.
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Percentage-of-sales approach: calculates the advertising budget based on percentage
of the prior year’s sales or the projected year’s sales.
Percentage of Sales
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Firm monitors the amount spent by various significant competitors on advertising and
allocates an amount equal to the amount of money spent by competitors or an amount
proportional to (or slightly greater than) the firm's market share relative to
competition.
Share of voice - advertising presence in the market, that is equal to or greater than the
competitors share of advertising voice.
Often used when new produced is introduced
Difficult to gain access to information on competitors spending
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Challenges:
Share of Market/Share of Voice
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Budgeting
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Difficult to gain access to information on competitors spending
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No reason to believe competitors are spending money wisely
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Flaw--assumption that every advertising effort is of the same quality will have the
same effect
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Provide useful information on what a given company's advertising response function
looks like
Advertising response function - mathematical relationship that associates dollars spent
on advertising and sales generated
Many other factors besides advertising affect sales
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Problem:
Response Models
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Objective-and-task approach - a method of advertising that focuses on the relationship
between spending and advertising objectives by identifying the specific tasks necessary
to achieve different aspects of the advertising objectives.
Most logical and defensible method for calculating and then allocating an ad budget
Only budgeting method that specifically relates spending to the objectives being
pursued.
Objective and Task
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Reach. Identify the geographic and demographic exposure the advertising is to
achieve.
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Frequency. Determine the number of exposures required to accomplish desired
objectives.
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Time frame. Estimate when communications will occur and during what period of
time.
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Production costs. Decision maker can rely on creative personnel and producers
to estimate cost associated with the planned execution of advertisements.
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Media expenditures. Define the appropriate media, media mix, and frequency of
insertions that will directionally address objectives.
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Ancillary costs. Variety of related costs not directly accounted for in the
preceding factors. Ex. Costs associated with advertising to the trade and
specialized research unique to the campaign.
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Integrating other promotion costs. New and improved forms of brand promotion
must also be considered as part of the planning and budgeting process.
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Step 1: Determine Costs based on build-up analysis(building up expenditure levels for
tasks):
Check percentage of sales that the estimated set of costs represents relative to
industry standards for percentage of sales allocated to advertising
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Identify the share of industry advertising that the firm's budget represents
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Compare the current budget with prior budgets
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Not used for decision making but rather as a benchmark to judge whether the
budgeted amount is so unusual as to need revaluation.
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Step 2: Compare costs against industry and corporate benchmarks
Modifications are common, but having to make radical cuts in proposed spending
is disruptive
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Previous phases help reduce risk of radical cuts
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Step 3: Reconcile and modify the budget
Recognize when the budget will be available for funding the asks associated with
proposed effort.
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Sometimes requires flexibility in budget execution
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Step 4: Determine a time frame for payout
Implementing the objective-and-task budgeting method
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Represents the mechanism by which something is to be done
Numerous possibilities
Strategy
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Document Summary
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