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Marketing Management

Marketing Management. Dawn Iacobucci. © 2010 South-Western, a part of Cengage Learning. Integrated Marketing Communications: The Advertising Message. Chapter 10. What is Advertising?. Communicate about products, brands, and position in marketplace

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Marketing Management

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  1. Marketing Management Dawn Iacobucci © 2010 South-Western, a part of Cengage Learning

  2. Integrated Marketing Communications: The Advertising Message Chapter 10

  3. What is Advertising? • Communicate about products, brands, and position in marketplace • TV ads, radio ads, print ads, billboard, pop-up ads, sponsored events, etc. • Integrated Marketing Communications • Maintain message's consistency across media choices

  4. Advertising • Advertising--short and long-term effects • Immediate and short-lived • Long-term impact on sales and brand equity • Demonstrating direct effect--complicated

  5. Why is Advertising Important? • Facilitate customers’ awareness • Persuade customers that brand is superior to competitors’

  6. Three Considerations • Goals must be clear • Measures are imperfect • It is a long-term game, does not pay off immediately

  7. Goals of Ad Campaign • Various goal models exist • e.g., Attention, Interest, Desire, Action (AIDA) • Goals largely fall into three categories • Cognition: increase brand awareness and knowledge • Affect: enhance brand attitudes and positive associations • Behavior: encourage more brand buying

  8. Goals of Ad Campaigns

  9. Ad Goals and PLC • Introduction: get the word out, inform the consumer of offering • Growth: enhance positive attitudes about offering • Maturity: remind consumers of offering • Decline: ad spending is greatly reduced

  10. “This new idea is good” “Our brand is best” “Our brand is better, really” “Let’s tell those who still want our product” Promotion Varies Over the Life Cycle

  11. Dyadic Communication • Three components • A source encodes a message (the firm) • A message (the ad) • A receiver decodes the message (customer) • Copy testing is conducted prior to an ad launch to learn whether the intended target correctly understands the message

  12. The Traditional Communication Process Feedback Encoding Message channel Decoding Source Noise Receiver

  13. Encoding & Decoding Depend on a Common Frame of Reference

  14. Types of Ads

  15. One-sided Argument Ads • Focuses on expressing product’s benefits • “Cleanup is easy and hassle-free

  16. Two Sided Argument Ads • Emphasizes benefits but acknowledges weaknesses • Stand out and are seen as more credible • “We cost more” because “we’re of better quality”

  17. Noncomparative Ads • A brand is mentioned and its features, attributes, image, etc. are conveyed

  18. Comparative Ads • A brand is mentioned as is the brand of a competitor • Market leaders typically do not do comparative ads

  19. Product Demonstrations Ads • Are vivid and make consumers' expectations clear • Consumers see what they'd get for their money

  20. Drama Ads • A problem is depicted and the brand is featured as the solution • Dramas are more memorable than a listing of features

  21. Humor Ads • May break through the media clutter and be buzz-worthy • May remember joke not product • May insult • May “wear out” • Usually not cost efficient

  22. Fear Ads • Are negative emotions • For a fear appeal to be effective, the ad must provide a solution to reduce the consumer’s fear

  23. Subliminal Ads • Ads shown fast enough that viewers cannot point to the ad. The ad was thought to have an effect on the subconscious • Considered unethical and never shown to work

  24. Image Ads • Used to convey an image • More abstract than features and attributes • Good for positioning

  25. Endorsement Ads • Have a brand spokesperson • Celebrities • Experts • Regular people • Source credibility effect

  26. Elaboration Likelihood Model • Central • Ad’s argument persuades • Occurs when customers are highly involved with brand and motivated to process the ad • Peripheral • Ad’s peripheral cues persuade not argument • Attractiveness or credibility of endorser, style of ad, etc. • Occurs when customers are not involved with brand and not motivated to process

  27. Which Type of Ad? • Sometimes, companies in an industry use the same appeal • Cars: product demonstrations • Investments: expert spokespeople • Usually, companies use appeals consistent with their positionings • Always consider the goal of the ad

  28. Measuring Cognitive Goals • Awareness and Knowledge • Recall: Which brands do you remember seeing advertised last night on TV? • Day after Recall (DAR) • Recognition: Do you remember seeing an ad for Disney Cruises last night? • Mere exposure • Sheer familiarity from repeated exposure will in time enhance the viewer’s favorability

  29. Measuring Affective Goals • Measure image and preference • Usually done prior to launch • Concept testing • 3-4 focus groups of 8-10 “random” participants who may be screened on relevant criteria are shown the underlying ideas of the ad • Ads are usually in preliminary development • Consumers responses to ad, brand, etc. are evaluated

  30. Measuring Affective Goals (continued) • Copy testing (continued) • Larger random samples of consumers view a TV program and ads. After 30 minutes, consumers take survey. • Ad evaluation items • Stimulation (curious, enthusiastic, etc.) • Information (useful, credible, etc.) • Negative emotion (irritation, etc.) • Transformation (enjoyment, satisfied feeling, etc.) • Identification (felt involved with it, etc.)

  31. Attitudes Toward Ad & Brand • Marketers also measure attitudes toward the ad (Aad)and brand (Abrand) • Positive (Aad) & (Abrand) are both important • Marketers believe • AadAbrandlikelihood to purchase

  32. Dial Procedures • Dial procedures are utilized to capture ineffective sections of ads • Participants turn the dial from the left (“I hate this”) to the right (“I think this is great”) continually while viewing the ad

  33. Study Question 1 • All elements of the marketing mix are important, but _____ is the most direct communication link. • a. marketing • b. advertising • c. price • d. place

  34. Study Question 2 • SuperStore is researching its options regarding the quickest way the company can increase sales. SuperStore’s research should lead them to which of the following? • a. price promotion • b. advertise • c. raise prices • d. none of these

  35. Study Question 3 • In the basic model of dyadic communication there are three parts. Which of the following is NOT one of the parts? • a. source • b. message • c. receiver • d. all of these are parts

  36. Study Question 4 • SnowBlowers, Inc. expresses the benefits of using its snowblowers. What type of argument is SnowBlowers, Inc. using? • a. two-sided argument • b. four-sided argument • c. one-sided argument • d. three-sided argument

  37. Study Question 5 • In a(n) _____, the featured brand name is mentioned, as is the brand name of a competitor. • a. cognitive ad • b. comparative ad • c. noncomparative ad • d. emotional ad

  38. Study Question 5 • http://www.cengage.com/marketing/book_content/0324784430_iacobucci/videos/ch10.html

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