IMC Exam 2 Mizzou - Essing

Advertising

a paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future

5 Basic Functions Performed by Advertising

1.Informing

2.Influencing (Persuading)

3.Reminding and Increasing Salience

4.Adding Value

5.Assisting Other Company Efforts

Advertising Function Alternatives

-In-house advertising operation

-Purchase services as needed (a la carte)

-Use a full-service advertising agency

Media Planners

develop overall media strategy

Media Buyers

procure the selected media

Profit=

Revenue - expenses

Revenue=

Price x Volume

Volume=

Trial + Repeat

Effective Advertising

sound strategy, consumer's view, persuasive, break clutter, deliver on promises, doesn't overwhelm

CAN elements of creative ads

Connectedness

Appropriateness

Novelty

Sicky Messages: SUCCESs

Simplicity

Unexpectedness

Credibility

Storytelling

Emotionality

Concreteness

Impression Hierarchy

1. Brand name (simplest level)

2. "Generics"

3. Attitudinal response

4. Commercial specifics

5. Specific sales message (highest level)

Advertising Plan

provides the framework for systematic execution of advertising strategies

Advertising Strategy

an advertising message that communicates the brand's primary benefits or how it can solve a consumer's problem

5 Steps of Advertising Strategy

1) Specify the key fact

2) State the marketing problem

3) State the communications objective

4) Implement the creative message strategy

5) Establish mandatory corporate/divisional requirements

10 Universal Values

1. Self-direction

2. Stimulation

3. Hedonism

4. Achievement

5. Power

6. Security

7. Conformity

8. Tradition

9. Benevolence

10. Universalism

Generic Strategy

Straightforward Product claim with no assertion of brand superitority

Preemptive Strategy

Employed when an advertiser makes a generic-type claim but does so with an assertion of superiority

Unique Strategy

Superiority claim based on a unique product attribute that represents a meaningful, distinctive consumer benefit

Symbolic Strategy

Symbolic or experiential orientation involves psychological rather than physical differentiation. Advertising attempts to develop an image or identity for a brand by associating the brand with symbols. Creates a distinct identity or personality for a brand.

Brand Image Strategy

Associates the experience of using an advertised brand with a unique set of psychological characteristics that typically would only be associated with the brand experience to the same degree with exposure to the advertisement.

Resonance Strategy

analogous to the physical notion of noise resounding off an object.

Emotional Advertising

an advertisement that attempts to elicit powerful emotions that eventually lead to brand recall and choice

Laddering

Attempts to get at the root or deep reasons why individual consumers buy certain products and brands

Corporate Image Advertising

- name recognition

- product goodwill

- identification with meaningful social activities

Corporate issue advertising

paid communication concerned with propagating ideas and explaining controversial social issues of public importance

in order to be effective, advertising must _____

Break through the clutter

5 types of messages prevalent in advertising

humor

appeals to fear

appeals to guilt

sex appeals

subliminal messages

approximately ____ of ads worldwide feature celebrities

1/6

attributes that contribute to an endorser's effectiveness

Credibility

Attractiveness

Power

Q- Score

A measure of the familiarity of a celebrity, as well as a company or brand.

Q-Score Formula

popularity percentage / familiarity percentage

Humor in advertising

Gaining attention

guiding consumer comprehension of product claims

influencing attitudes

enhancing recall

creating customer action

subliminal

refers to the presentation of stimuli at a rate or level that is below the conscious threshold of awareness

Functions of Music in advertising

-Attracts attention

-Promotes positive mood

-Increase receptivity of message

-Communicates meanings

Factors in the choice of best advertising media

-advertiser's objectives

-creative needs

-competitive challenge

-available budget

Newspaper Strengths

-Audience in an appropriate mental frame to process messages

-Mass audience coverage

-Flexibility

-Ability to use detailed copy

-Timeliness

Newspaper Limitations

-Clutter

-Not a highly selective medium

-Higher rates for occasional advertisers

-Mediocre reproduction quality

-Complicated buying for national advertisers

-Changing composition of readers

Magazine Advertising Strengths

-Some magazines reach large audiences

-Selectivity

-Long life

-High reproduction quality

-Ability to present detailed information

-Ability to convey information authoritatively

-High involvement potential

Magazine Limitations

-not intrusive

-long lead times

-clutter

-somewhat limited graphic options

-variability of circulation patterns by market

Radio Strengths

-Ability to reach

-segmented audiences

-intimacy

-Economy

-Short lead times

-transfer of imagery from TV

-Use of local personalities

Radio Limitations

-clutter

-no visuals

-audience fractionalization

-buying difficulties

Types of television advertising

-Network

-Syndicated

-Local

-Cable

-Spot

Network advertising

Useful when selling a product nationally on major networks

Expensive, but it is a cost-efficient means to reach a mass audience

Spot Advertising

Advertising is placed only in selected markets

Regional-oriented marketing and geodemographic segmentation of consumer markets

Syndicated Programming

Occurs when an independent company markets a show to as many network-affiliated or cable TV stations as possible

Cable Advertising

Uses narrowcasting to reach 85% of all households of

economically upscale and young subscribers

Local Advertising

Local advertisers are turning to television as it is inexpensive during the fringe time

Television Advertising Strengths

-demonstration ability

-intrusion value

-ability to generate excitement

-one on one reach

-ability to use humor

-effective with sales force and trade

-ability to achieve impact

TV advertising limitations

-Rapidly expanding cost

-Erosion of Viewing Audience

-Audience fractionalization

-zipping and zapping

-cord cutting

Online Advertising benefits

-individualization

-interactivity

-immediate publishing

-cost efficiency

Online Advertising Costs

-user distraction

-too many choices

-internalization

-coordination

-rapid change

-short lead times

Keyword Matching Advertising

prospective advertisers bid for keywords by indicating how much they are willing to pay each time an Internet shopper clicks on their website as a result of a search (cost per click)

pop-ups

Ads that appeal in a separate window

Interstitials

ads that appear between two content web pages

superstitials

short, animated ads that play over or on top of a web page

online video ads

audio-video ads that are similar to 30-second TV commercials but are shortened to 10-15 seconds and compressed

Ad Serving

Delivering Ads to all types of sites is performed by a middleman that has the necessary hardware and software

Types of Ad Targeting

-Demographic

-Geographic

-Lifestyle

-Behavioral

E-mail Advertising problems

-privacy and behavioral targeting

-opt-in and out battles

-SPAM

-Phishing and international fraud

-Click fraud with search engine advertising

-Ad Blockers

Social Media

Web-based and mobile tech used to turn communication into interactive dialogue

Social Media vs Traditional: Reach

Both offer scale, but traditional media is more centralized, while social media is decentralized

Social Media vs Traditional: Usability

-Traditional media requires specialized skills and training

-Anyone with online access can generate content for social media

Social Media vs Traditional: Immediacy

-Traditional media often has long time lags

-social media can be generated very quickly

Social Media vs Traditional: Permanence

-once created, traditional media cannot be altered

-changes can be made "on the fly" with social media

Social Media Advantages

-Flexibility

-Reach Options

-Consumer Engagement

-Two-way Dialogue

-Integration and ability to drive traffic

-Improved metrics and research

-Cost effectiveness

Social Media Disadvantages

-Privacy and censorship

-Lost productivity, addiction, and fatigue

-Meaningless comments

-Hackers and frauds

-Negative comments

What makes a social media campaign work

-Encourage storytelling about the brand

-Step into the real world

-Evolve with your customers in being social and human

Direct Marketing

an interactive system of marketing that uses one or more advertising media to effect a measurable response and/or transaction at any location

Types of direct marketing

-direct mail

-online advertising

-telemarketing

-direct selling

Direct response advertising

Involves the use of several media to transmit messages to encourage buyers to purchase directly from the advertiser

Features of Direct-Response Advertising

- makes a definite offer

- contains all information necessary to make a decision

- includes a response device (e.g., website, toll-free number, coupon) to facilitate action

5 distinct features of direct mail

-targetability

-measurability

-accountability

-flexibility

-efficiency

Database marketing

a process by which companies collect information on consumers, analyze it to predict who will buy, and then develop tailored marketing messages to those consumers

Customer lifetime value

net present value of profit that a company stands to realize on the average new customer during a given number of years

5 ways to augment lifetime values

1. Increase the retention rate

2. Increase the referral rate

3. Enhance the average purchase volume per customer

4. Cut direct costs

5. Reduce marketing communication costs

Mailing Lists

1. house lists

2. house lists of other companies

3. compiled list

Brand Placement

is a marketing strategy whereby an advertiser promotes a brand by inserting it within the context of a selected medium for a fee or other consideration

media

general communication methods that carry advertising messages- TV, magazines, newspapers

Vehicles

The specific broadcast programs or print choices in which advertisements are placed

advertising message and media considerations are ____ related

inextricably

Programmatic ad buying

series of tactics in purchasing online ad space: fully automated ad buying, real-time auctions for ad inventory, and data-driven targeting efforts

wasted exposure

some nonpurchase candidates see the advertisements, while prime candidates are missed

media planning process

1. selecting the target audience

2. specifying media objectives

3. selecting media categories and vehicles

4. buying media

Reach

what proportion of the population should be reached with vehicles containing the advertising message during specified period

frequency

how frequently should the audience be exposed to the vehicles with the message during this period

Weight

How much total advertising is needed to accomplish reach and frequency objectives

Continuity

How should the advertising budget be allocated over time

Recency

How close to the time of purchase should the target audience be exposed to the vehicle with the advertising message

Cost

What is the most economically justifiable way to accomplish objectives

Gross impressions

total audience exposed during the specified period to any of the media vehicles containing the ad messaged on any occasion

more people are reached when a media schedule

-Uses multiple media

-Diversifies vehicles within each medium

-Varies the dayparts

A rating (in general)

Percentage of an audience that has an opportunity to see an ad placed in a vehicle

3 weight metrics

1. gross ratings

2. target ratings

3. effective ratings

GRP (gross rating points)

an indicator of the amount of gross weight that a particular advertising schedule is capable of delivering

GRP formula

reach x frequency

TRPs (target rating points)

adjust vehicle ratings to reflect just those individuals who match the advertiser's target audience

Continuous advertising schedule

an equal number of ad dollars are invested throughout the campaign

Pulsing advertising schedule

some advertising is used during every period of the campaign but the amount of advertising varies from period to period

Flighting advertising schedule

The advertiser varied expenditures throughout the campaign and allocated zero expenditures in some months