Advertising mid-term

Chapter 1:

Marketing creates the demand

• signs=advertsing

Advertising 

Awareness                                                                                    Attitude Shift

• Product                                                                            - brand 

• Service                                                                            -  Government

  • NGO

Classification:

• Broadcast

  • TV (15-60 slot for paid advertisement)

  • Radio

  • Digital 

• Print 

  • Newspaper

  • Magazine

  • Poster 

• Outdoor 

  • Billboard

  • Transit

  • Place-based 

(all sub-classifications can be used for profit or public service)

Principles of effective advertising:

• Grab people (phone plan advertisement)

• Be cleaver and creative (HP)

• Speak loudly (kill bill)

• Dont make your audience think too much (chipotle)

• Utilize colours that pop (coca-cola)

• Be informative/convey a message (fed-ex)

• Show. dont tell. (dunkin doughnuts)

• Humor

• Emotion (foldgers)

Advertising techniques:

Emotional appeal: 

• Need: 

• Something new

•  Acceptance 

• Not being ignored

• Need for change

• Security

• Attractiveness 

• Fear: 

• Sickness

• Guilty

• Accident

• Death

• Aging

• Being avoided

Promotional advertising:

• Sample products

Bandwagon advertising: 

• Suggests using the product allows you to be part of a group

• Ex. 1,000 people trust our product

Facts and stats:

• Use of empirical data to reinforce products

• Ex. lysol cleans 99.9% of germs

Unfinished Ads:

• Open-ended with no facts of data supplied

Weasel words:

• A modifier that makes a statement meaningless

Endorsement: 

• Using a celebrity to enforce a product

Symbolism: 

• Uses dramatic visuals and metaphors to draw attention to the product

Association: 

• Appeals to human psychology

Fantasy: 

• Use of AI in advertisement (kind of movie feel)

Covert: 

• When advertisers fail to declare their investment in the advertisement publicly 

• Ex. product placement 

WHISPER MARKETING IS ALSO KNOWN AS BUZZ AND ROACH MARKETING

Misconceptions in advertising (so these are not true):

• Advertising only works for some businesses

• Advertising is only needed when business is slow

• Advertising creates needs

• Advertising continues overtime 

• If the product is not selling well then advertise it

CONSIDER ADVERTISING AN INVESTMENT AND NOT AN EXPENSE

Chapter 2:

Reach vs Frequency

What is Frequency?

• Number of times a consumer is likely to be exposed to your advertisement

• Increasing the frequency increases the likelihood of consumer seeing it

What is Reach?

• The number of viewers within a set period of time that are potentially exposed to your ad campaign

The relationship:

• Inverse relationship if you increase the reach the frequency can go down and vice versa

GRP equation: % of target market reached x exposed frequency

ROI equation: gross margin/cost

Chapter 3:

*go to evolution of executive summary slides

Types of print advertising (magazines):

General Interest:

• Most Common

• General Audience

• Broad Range of Topics

• Heavy General Advertising

• Glossy Finish

• Widely Available

Special Interest:

• Next Most Common

• Specific to Particular Audience

• Singular Themes

• Specific Advertising

• Widely Available

Professional:

• Article driven

• Niche Audience

• Limited Advertising

Types of print advertising (newspaper):

• National: Covers news across the entire country as well as international.

• Regional: Contains some national and international news but focuses on specific areas of the country.

• Local: Contains some national and international news but the focus is on local news topics in detail.

• Tabloid: Covers all national and international news. Contains gossip or scandalous news and more personal stories

• Broadsheet: Larger than a traditional paper. Has elements of seriousness and tabloid.

Magazines factoids:

• Most expensive print platform

• Best vehicle for experimentation and creativity

• Global reach for many publications

• Cachet of the magazine can positively influence the advertised product/service

• KEY ISSUE: Declining readership, environment

Newspaper factoids:

• Most common form of print advertising

• Most inexpensive way to reach a broad base

• Size, location and frequency dependent on the budget

• Sectionalized newspapers allow you to better target consumer

• KEY ISSUES: Readership is declining, aesthetics, environment

Flyer factoids:

• Inexpensive

• Typically, weekly inserts into established publications

• Clear calls to action

• Its about the copy, not the image

Directories factoids:

• Historically the most common form of print advertising

• Has become somewhat obsolete with the advent of digitization

• Just the facts. Nothing memorable

• Affordable option

Mailer factoids:

• A mailer often employs a list broker to assist with buying mailing lists and a service bureau to assist with the list processing necessary to conduct their direct marketing campaigns.

• The term mailer is sometimes used to refer to a marketer sending email or other direct communications.

• Types include postcards, leaflets (self mailers), letters, catalogues, dimensional mailers

Keys to effectiveness:

• Ad doesn’t draw attention, its not gonna get noticed

• Bright colours, bold text, eye-catching images

• Readers attention should be all drawn to one place

• Holds your interest

• Easy to remember 

• Avoid confusion 

• Be clear on intent

• Clear brand recognition 

• Extension of brand strategy

• Call to action

• Gets results 

Vampire effect: a decrease in brand recall

Chapter 4:

Outdoor advertising: away from home advertising

Evolution of outdoor advertising:

Hieroglyphics —------- printing press —----- lithography —-------- automobile —--------- digital

Digital outdoor:

• Expensive 

• High traffic areas

Mobile outdoor:

• Moving vehicle

• Target audience at large events

Classic billboard:

• Large

• Long periods of advertising

painted/mural: 

• Very rare

• Man-made 

Three dimensional:

• Images designed to po

• Greater focus on product

Scented

• Very rare and selective

• Restaurant centric

Vinyl:

• Digitally printed 

• used at events

Brevity:

• The average billboard is viewed for 3.5 seconds

• One chance to get your message across

Rule of three:

• 3 main elements that let the eye move quickly and easily 

• Dont jumble too many phots

• Should be no longer than 5 words or so

• More you have on the billboard, the more it will be overlooked

Less is more:

• Dont have to much information in your billboard

Know you location:

• Placement

• Know where high-traffic areas are

Chapter 5:

Under Marketing department head:

• Pricing  

• Brand equity

• Brand essence 

Why brand strategy matters:

• Helps sharpen consumer perception

• Reinforces market strategy

• Casts a vision and communicates a unique value of the brand

Profit and loss statement:

Gross revenue = volume x how much your selling the product for

Then, net sales = gross revenue - discounts and rebates

Then, gross profit = net sales revenue - cost of goods

Then, brand contribution = gross profit - advertising - sales and customer A&P - consumer A&P

Then, EBIT = brand contribution - overheads

Below the line marketing:

• Trade marketing

• Promotion

• Trade shows

• Samples

• Sales and customer A&P

Above the line marketing:

• Broadcast

• Print

• Outdoor

• Agency fees

• Consumer A&P

Advertising agency: creative agency, business dedicated to creating, planning, and handling advertising

• Generally independent from the client

• Decreases overhead

Why agencies exist:

• Content experts (really good at what they do)

• Independent from supplier/client

• Allow brand managers to focus on strategy 

• More cost effective

Full service agencies:

• Large

• Deals with all stages of advertisement

• Different experts from different departments

Creative brief:

1. What problem is being resolved through the campaign or advertisement

2. Who is the target market (be very clear)

3. What is the consumer insight (what motivates the consumer into buying)

4. Facts or emotional reasons will make people buy

5. What fo you want to tell your consumer 

6. What channels and tactics will we use to communicate the message

7. Tone of the messaging

8. What do you want people to do after watching ad

9. The goals of the campaign

10. Guidelines we should be aware of (colour cues)

11. Who is competition

12. When you lauch it

13. Approvals