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Chapter 15

Chapter 15 Notes


Department
Management (MGM)
Course Code
MGMA01H3
Professor
Alison Jing Xu
Chapter
15

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Chapter 15 Advertising and Public Relations Notes
Advertising
advertising any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor
although advertising is used mostly by business firms, a wide range of not-for-profit organizations, professionals, and social
agencies also use advertising to promote their causes to various target publics
marketing management must make 4 decisions when developing advertising program: setting advertising objectives, setting
advertising budget, developing advertising strategy (message decisions, media decisions), and evaluating advertising campaigns
Setting 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
overall advertising objective is to help build customer relationships by communicating customer value
advertising objective specific communication task to be accomplished with specific target audience during precise time period
advertising objectives can be classified by primary purpose—whether the aim is to inform, persuade, or remind
informative advertising is used heavily when introducing a new product category as the objective is to build a primary demand
persuasive advertising becomes more important as competition increases as the objective is to build selective demand
some persuasive advertising has become comparative advertising, in which a company compares its brand with other brands
reminder advertising is for mature products—it helps to maintain customer relationships and keep them thinking about product
Setting the Advertising Budget
advertising budget the dollars and other resources allocated to a product or company advertising program
a brand’s advertising budget often depends on its stage in the product life cycle
market share affects amount of advertising needed: because building market or taking market share from competitors requires
larger advertising spending than maintaining current share, low-share brands need more advertising spending as percent of sales
brands in a market with many competitors and high advertising clutter must be advertised more heavily to be noticed
undifferentiated brands may require heavy advertising to set them apart
when the product differs greatly from competitors, advertising can be used to point out the differences to consumers
Developing Advertising Strategy
advertising strategy the strategy by which the company accomplishes its advertising objectives; it consists of two major
elements: creating advertising messages and selecting advertising media
more and more advertisers are orchestrating a closer harmony between their messages and the media that deliver them
Creating the Advertising Message
no matter how big the budget, advertising can succeed only if advertisements gain attention and communicate well
good advertising messages are especially important in today’s costly and cluttered advertising environment
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
first step in creating effective ad messages is to plan message strategy—decide what general message will be communicated
ideally, advertising message strategy will follow directly from the company’s broader positioning and customer value strategies
creative concept compelling “big idea” that will bring advertising message strategy to life in a distinctive and memorable way
advertising appeals should have 3 characteristics—(1) they should be meaningful, pointing out beliefs that make product more
desirable or interesting to consumers; (2) appeals must be believable as consumers must believe that product or service will
deliver promised benefits; and (3) appeals should be distinctive as they should tell how product is better than competing brands
execution style approach, style, tone, words, and format used for executing message, such as slice of life, lifestyle, fantasy,
mood or image, musical, personality symbol, technical expertise, scientific evidence, testimonial evidence or endorsement
the advertiser must also choose a tone for the ad and must use memorable and attention-getting words in the ad
finally, format elements make different in ad’s impact as well as its cost—illustrations, headlines, and copy (main block of text)
Selecting Advertising Media
advertising media the vehicles through which advertising messages are delivered to their intended audiences
the major steps in advertising media selection are (1) deciding on reach, frequency, and impact; (2) choosing among major media
types; (3) selecting specific media vehicles; and (4) deciding on media timing
reach is a measure of percentage of people in the target market who are exposed to the ad campaign during a given period of
time
frequency is a measure of how many times the average person in the target market is exposed to the message
advertiser must also decide on the desired media impact—the qualitative value of a message exposure through a given medium
more generally, the advertiser wants to choose media that will engage consumers rather than simply reach them
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