“Effective advertising influences behavior or though patterns.

3. Diosdado Salvador Jr. • Former Asean President • Johnson & Johnson “Effective advertising influences behavior or though patterns.

4. Advertising Strategy

5. Advertising is a PULL strategy in contrast to sales promotions, which is a PUSH strategy. • An advertising strategy is a plan to reach and persuade a customer to buy a product or a service.

6. Brand advertising, which aims to stimulate demand for a particular brand. • Institutional advertising,which aims to develop goodwill for a company or industry. Advertising Several Purposes

7. Classified advertising, which aims to inform prospects regarding opportunities such as buy and sell, events and employment. • Promotional advertising, which aims to inform prospects about promotional activities such as a special sale. • Advocacy advertising, which aims to convince audiences regarding a particular cause.

8. Advertising objectives must be relevant to the existing market situation. • Marketing function of advertising is to inform and to persuade (which will later be explained in Exhibit 8-1). Advertising Objectives

9. Objectives must be SMART. The acronym means; Specific, Measurable, Attainable, Realistic and Time-bound.

10. TO INFORMtarget customers about: • New product • Product function • Correct usage • New uses • New distribution • Price adjustment Exhibit 8-1: Advertising Objectives

11. Exhibit 8-2: Advertising Mix • WHAT to say • HOW to say it • WHERE to say it • WHEN to say it Other critical questions are: 5. HOW MUCH to spend 6. HOW to measure effectiveness of results

12. Advertising Mix The Exhibit 8-2 shows the critical advertising decisions to be made before an advertising program can be implemented. These decisions are usually made after the target market and the advertising objectives have already been defined.

13. While brands advertise to be known, they must be known for the right reason and must deliver its promise. • Brand awareness leads to brand association and this is where positioning comes in. Positioning: What To Say To Customers

14. Positioning is the act of communicating to consumers the overall positive impression for a brand, relative to competition. • Positioning is also achieved not only in terms of media communication but also in terms of adopting marketing policies consistent with its desired image.

15. TO PERSUADEtarget customers about: • Brand preference • Brand switching • Urgency to buy now • Action to be taken (like phone-in inquiry)

16. Exhibit 8-3 Alternative Positioning Price- Beer na Beer: kuhangkuhaanglasa, samasmababanghalaga Product Attribute - French Baker: The Freshness Baker Product Category - AscofLagundi: the leading cough remedy that is all natural

17. Product Source – Ginseng: Proudly Made in Korea. User Segment - Duty free Shopping: For balikbayan shopping Usage Behavior - Viva Mineral Water: wash away your excesses Experience/Feeling - ChowkingDitokumakainangmasarapkumain Against Competition - Nizoral shampoo: 100times better than the leading brand

18. Exhibit 8-4 Ries and Trout Positioning Guidelines What position do you currently own? What position do you want to own? Whom do you have to defeat to own the position you want? Do you have the resources to do it? Can you persist until you get there? Are your tactics supporting the positioning objective you set?

19. Ries and Trout also gave a six-step question framework to proper positioning. It is important to be consistent in the positioning, or consumers will be confused. • Al Ries is Chairman of Ries & Ries, Focusing Consultants. Jack Trout is Chairman of Trout & Partners. Al Ries and Jack Trout are undoubtedly the world's best-known marketing strategists.

20. Repositioning is done to change the past perceptions of the target consumer. As general rule, the more extreme the change, the more difficult the repositioning. Repositioning has two concepts: • Changing an old brand positioning to a new band positioning. • Changing consumers perception of competitors. Repositioning

21. Changing an old brand positioning to a new band positioning. Example: Sustagen used to be positioned as a therapeutic food for the sick as well as recovering patients. The brand was repositioned in the product category of a nutritional drink. Two Concepts of Repositioning

23. Changing consumers perception of competitors. Example: Cetrin was initially positioned as a vitamin supplement but is now repositioned as a family juice drink in powdered form. Two Concepts of Repositioning

25. Stages in creating advertising: • Preparation of copy strategy and/or brief to guide the creative team must in our hypothetical example in exhibit 8-5. Copy Strategy: How To Say Message

26. The creative process itself where the output is a storyboard in the case of a TV advertisement, “compre” in the case of print advertisement; and script in the case of a radio commercial. • Evaluation of the creative output. This could be a combination of logic, research and judgement.

27. Copy brief or copy strategy is the basic proposition, costumer promise, or statement of benefits. • It includes the product features and pieces of evidence (or “reasons why”) that justify the proposition to make it as convincing as possible. Copy Brief

28. Copy brief also includes the tone of voice on how the message should be delivered (in case of TV or radio advertisement) which includes the brand image to be projected, and frequently the consumer image, or the picture that target users ascribe to the brand.

29. Exhibit 8-5 Sample of a Copy Brief for Toothpaste Brand “Advertising will convince families belonging to the upper and middle income classes with children in cavity-prone ages that brand C is the therapeutic toothpaste (positioning) most effective in preventing cavities (primary end benefit).

30. The principal support is X02 (features), a unique formulation in brand C which works by attacking cavity-causing germs instead of simply strengthening teeth as done by most other anti cavity toothpastes. Brand C is officially accepted by the Philippines Dental Association (proof). Brand C also comes in two different flavor (secondary benefits.)

31. Tone should be clinical, authoritative and straightforward. If likened to a person, Brand C could be an elderly doctor who understands and cares for the health problems of the family.”

32. Guide questions are important before a copy brief can be written. They are: • Brand Overall Objectives – Is our objective to create new users, or new users, or more usage for our brand? Is it to convince users about our superior features? • Target market – What is the demographic, behavioral and psychographics profile of the primary and secondary target market we plan to reach?

33. Diagnostic positioning – In terms of competitive standing, what attributes are important to the customers where we have the advantage? • Factors Influencing Product Purchase– This answers the where, how, how often, what sizes and what variants bought as can be gathered in a Usage, Attitude, and Interest (UAI) survey.

34. NOTE: • Copy strategy is not normally changed unless there is a change in the product or in ways the consumers can use the product.

35. Slice of Life - This show one or more persons using the product in a normal setting. • Scientific Evidence - Colgate has been using scientific and laboratory evidences. 9 Execution Styles Advertising Execution

36. Testimonial Evidence - A closely associated evidencing format is the testimonial approach where a credible individual or a group would endorse the company’s product. • Technical Expertise - This shows company’s expertise and experience in making the product. • Lifestyle - Emphasizing on how a product fits in with a lifestyle.

37. Fantasy - Is created around the product or its use. • Image - Many of the advertisements of apparel brands. • Musical - Background music or the ad talent would be shown singing a song involving the product. • Personality symbol - This associates a personality to a product.

38. Exposure (E) is the placement of the advertisement in a media vehicle such as TV, radio, billboard, print (newspapers, magazines, etc.) and online that the target audience is expected to know see, hear, or read. • Exposure creates awareness. Media Plan: Where and When To Advertise

39. Three important and interrelated exposure variables must be considered: • Reach (R) or the number of consumers exposed to a particular advertising at least once during the specified duration.Reach is composed of two types: • Registration – people who correctly recall and playback something meaningful. • Recognition – people who could not playback anything meaningful, but recognize the advertisement.

40. Frequency (F) or the number of times consumers are reached. • Impact (I) or the qualitative value of an exposure through a given medium size.

41. Traditional advertising is composed of TV, radio and print.

44. From about P20 billion advertising expenditures in 2000, TV got the lion’s share at 65%, followed by radio at 17% and print at 18%. As of the year 2000, the following have been denoted:

45. Television • There are about 11.8 million homes with TV sets, out of 15.3 million homes nationwide. • The biggest TV network is ABS-CBN (Channel 2) with penetration level covering 97% of homes with TVs, followed by GMA 7. • Total advertising minutes reached 217,792 minutes.

48. Radio • There are eleven major stations in fifteen areas nationwide. • Total advertising minutes reached 3,640,900 minutes. • In the Greater Manila Area, the number of AM and FM stations are almost even with slightly more AM stations. • Audience share is 75% in favor of FM listeners.