SAMAR COLLEGE

Catbalogan City, Samar

Tel. Nos. (055) 251- 3021, 543-8381, Fax (055) 251-3021

COLLEGE OF BUSINESS AND MANAGEMENT

Individualized Learning Material (ILM)

in

MM Prof 5
(ADVERTISING MANAGEMENT)

ROBERTO VELASCO MABULAC

Instructor
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 SAMAR COLLEGE
Catbalogan City, Samar
Tel. Nos. (055) 251- 3021, 543-8381, Fax (055) 251-3021

COLLEGE OF BUSINESS AND MANAGEMENT

Course : MM Prof 5 (ADVERTISING MANAGEMENT)

Instructor : ROBERTO V. MABULAC ([email protected])
Program : Bachelor of Science in Business Administration (BSBA)
Units : 3 Units
Schedule : 4:00-5:30 PM / TTh / Anne 8
Course Description : This course is an introductory study of advertising from the specific point of view of Account Management
within the advertising agency. It involves the understanding and appreciation of proper strategies--Advertising, Creative and Media -- as bases
for correct, effective and efficient advertising campaigns in the Philippines. It also examines fully the roles played by the different department of
an agency and the various segments of the advertising industry that pertain to each of them. This course will benefit future advertising
practitioners whether as account managers in ad agencies, or as advertising or brand managers of clients, or as heads of their own
companies.

ADVERTISING MANAGEMENT
BRIEF CONTENTS
PRELIMINARIES AND MIDTERM COVERAGE
WEEK TOPIC
1  Introduction
2  Integrated Marketing Communication
3  Advertising and Its Types
4  Comparative Advertising
5  Communication models in Advertising
6  Objective Setting & Determining Target Audience
7  Understanding Segmentation
8  Positioning

FOR THE LEARNER

Welcome to the Advertising Management Individualized Learning Material (ILM) on the introductory study of
advertising from the specific point of view of Account Management within the advertising agency. This ILM was designed to
provide you with fun and meaningful opportunities for guided and independent learning at your own pace and time.
You will be enabled to process the contents of the learning resource while being an active learner.
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This ILM has the following corresponding parts:

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  This is the first part of the Individualized Learning Material (ILM). In this part shows the enabling
LEARNING OUTCOMES
objectives with Knowledge, Skills and Attitude. The LEARNING OUTCOMES must be unpacked
from the Most Essential Learning Competencies (MELCs).

 This is the second part of the ILM. In this part, the teacher can give an activity that will help the
learner recall his/her previous learning. In addition, it will facilitate if the said activity will help
bridge the learner's experiences with the new lesson. The association with “a previous learning”
REVIEW QUESTIONS does not automatically mean the previous lesson but acquired knowledge that will serve as clue
or springboard to process the new one.
 The idea here is to come up with an activity that will cater to both the review and motivation parts
of the usual lesson.

 In this part of ILM, the new lesson will be introduced. A number of authentic materials may be
DISCUSSIONS used to introduce the lesson. In addition, important concepts be emphasized here. The teacher
can present the lesson in a creative way instead of just simply giving out the lesson or concepts.

 In this part of ILM the teacher can make use of graphic organizers in crafting exercises or any
activity where the learner is still guided even though it is independent learning on their end.
SKILL DEVELOPMENT  The teacher may give additional exercises that will enable the learner transfer new knowledge or
skill into real-life experience or situation and engage in higher cognitive thinking, such as
problem-solution, cause-effect, etc.

 This part will assess whether the learning competency is achieved in a form of formative
ASSESSMENT assessment to check the understanding of the student of the lesson presented in the ILM. The
teacher may use different types of tests tailored-fit to the content.

 This is the last part of ILM wherein the teachers will ask questions to students to reflect on
his/her learning, the problems encountered while utilizing the ILM.
Sample questions:
REFLECTION  What important concepts have you gained in the lesson?
 What are the difficulties have you encountered in the process of learning?
 How will you apply the lesson learned in real-life situation?

SOURCES  This part will compile the references used in the ILM. IPA format will be used to cite the
references and separate the list of books, electronic and websites.
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 ANSWER KEY  This contains answers to all activities in the module.
 NB: correct and possible answers will be given in the next module.

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 INTRODUCTION TO ADVERTISING AND INTEGRATED BRAND PROMOTION



LEARNING OUTCOMES

After going through this ILM, you are expected to:

 Explain the basics of advertising
 Explain bout advertising as a communication process.
 Explain to the relevance of marketing within the context of advertising
 Discuss the relevance of the Promotion mix.

REVIEW QUESTIONS

1. Based on the definitions of advertising, sales promotion and publicity in the text, is the following an example of
advertising? Why or why not? If not, what are they?
→Is Stan Lee, co-creator with the late Jack Kirby (and others) of characters in the Marvel comic books, on the
"Tonight Show" to discuss the new movie featuring Thor, Captain America and Iron Man advertising for the movies or
advertising for action figures based on the characters?
→ A television program selling exercise equipment which buys time to run the show on various television stations or
cable networks?
→Is a new "Teen-Age Mutant Ninja Turtles" TV program advertising for the action figure toys?
2. People often say that advertising is what makes mass production and mass distribution of products possible. What
historical fact of the origins of branding and advertising in the latter half of the 19th century prove such assertions as
false?
3. In the 19th century, manufacturers of unbranded products sold everything they produced. To sell more, they would
manufacturer more products knowing that it would all sell. What did the Rotzoll article note as the reason why
manufacturers in the 1880s started product differentiation, branding and advertising? Obviously, it was not to sell more
products, so why did he say companies started to brand and advertise their products?
4. What is the name of the marketing activity that provides incentives for purchasing a product such as coupons or
premiums?
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5. Why didn't advertisers in the 19th century consider magazines as an important advertising medium for branded
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products? (This asks for advertisers' decision options, not the views of magazine publishers.)

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 Discussions

ADVERTISING MANAGEMENT 

 Advertising Management is a planned managerial process designed to oversee and control the various advertising
activities involved in a program to communicate with a firm's target market and which is ultimately designed to
influence the consumer's purchase decisions.
 Advertising is just one element in a company's promotional mix and as such, must be integrated with the overall
marketing communications program. Advertising is, however, the most expensive of all the promotional elements and
therefore must be managed with care and accountability.

Advertising management is a complex process. However, at its simplest level, advertising management can be reduced to four
key decision areas:
 Target audience definition: Who do we want to talk to?
 Message (or creative) strategy: What do we want to say to them?
 Media strategy: How will we reach them?
 Measuring advertising effectiveness: How do we know our messages were received in the form intended and with the
desired outcomes?

ADVERTISING AND ADVERTISING MANAGEMENT: DEFINITIONS

 The American Marketing Association (AMA) defines advertising as "the placement of announcements and persuasive
messages in time or space purchased in any of the mass media by business firms, nonprofit organizations,
government agencies, and individuals who seek to inform and/ or persuade members of a particular target market or
audience about their products, services, organizations, or ideas".
 The American Heritage Dictionary defines advertising as "the activity of attracting public attention to a product or
business, as by paid announcements in the print, broadcast, or electronic media".
 Selected marketing scholars have defined advertising in the following terms: "any non-personal communication that is
paid for by an identified sponsor, and involves either mass communication viz newspapers, magazines, radio,
television, and other media (e.g., billboards, bus stop signage) or direct to-consumer communication via direct
mail". and "the element of the marketing communications mix that is non-personal, paid for by an identified sponsor,
and disseminated through mass channels of communication to promote the adoption of goods, services, persons, or
ideas." One of the shortest definitions is that advertising is "a paid, mass-mediated attempt to persuade".
Several common themes emerge in the various definitions of advertising:
o Firstly, advertising is a paid  form of communication and is therefore commercial in nature.
o Secondly, advertising employs non-personal channels  (i.e. commercial mass media) which implies that it is
directed at a mass audience rather than at an individual consumer and is a one-way communication mode
where the sponsor sends messages, but recipients cannot respond or ask questions about the message
content.
o Thirdly, advertising has an identified sponsor  .
 In summary, given that advertising is paid, it is one of the many controllable elements in the marketing program.
Advertising is qualitatively different from publicity where the message sponsor is either not identified or ambiguously
defined, and different to personal selling which occurs in real-time and involves some face-to-face contact between
message sponsor and recipient allowing for two-way dialogue.
 While advertising refers to the advertising message, per se, advertising management refers to the process of planning
and executing an advertising campaign or campaigns; that is, it is a series of planned decisions that begins with market
research continues through to setting advertising budgets, developing advertising objectives, executing the creative
messages and follows up with efforts to measure the extent to which objectives were achieved and evaluate the cost-
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benefit of the overall advertising effort.

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ADVERTISING AND ORGANIZATIONAL RESPONSIBILITIES
 In commercial organizations, advertising, along with other marketing communications activities, is the ultimate
responsibility of the marketing department. Some companies outsource part or all of the work to specialists such as
advertising agencies, creative design teams, web designers, media buyers, events management specialists or other
relevant service providers.
 Another option is for a company to carry out most or all of the advertising functions within the marketing department in
what is known as an in-house agency. By definition, an in-house agency is a "an advertising organization that is owned
and operated by the corporation it serves". Its mission is to provide advertising services in support of its parent
company's business and marketing objectives.
 Well-known brands that currently use in-house agencies include Google, Calvin Klein, Adobe, Dell, IBM, Kraft, Marriott
and Wendy's

ADVERTISING'S ROLE IN THE PROMOTIONAL MIX

Customers rely on different types of marketing communications at different stages of their purchase decision

 The promotional mix refers to the specific combination of promotional methods used for a brand, product or family of
products. Advertising is best treated as a multiplier that can leverage other elements of the promotional mix and
marketing program. Therefore, advertising must be considered as part of a broader marketing and promotional
program.
The promotional mix includes a variety of tools such as:
 Advertising: messages paid for by those who send them and intended to inform or influence people who receive them
 Branded entertainment: the dedicated production of content designed to display corporate or branded messages in an
entertaining format
 Public relations (PR): the practice of maintaining goodwill between an organisation and its publics
 Personal selling: face-to-face selling in which a seller attempts to persuade a buyer to make a purchase.
 Direct marketing: contacting and influencing carefully chosen prospects with means such as telemarketing and direct
mail
 Sponsorship: the act of providing money for a television or radio program, website, sports event, or other activity
usually in exchange for advertising or other form of promotion
 Product placement: the practice of supplying a product or service for display in feature films or television programs .
 Sales promotion / merchandising: activities designed to stimulate sales normally at the point-of-sale; includes retail
displays, product sampling, special price offers, shelf talkers, contests, give-aways, promotional items, competitions
and other methods
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Event marketing: a planned activity of designing or developing a themed activity, occasion, display, or exhibit (such as
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a sporting event, music festival, fair, or concert) to promote a product, cause, or organization.

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 Exhibitions/trade shows: events or shows (e.g. fashion shows, agricultural shows) where companies can display their
wares or services.

THEORIES OF ADVERTISING EFFECTS

Advertising messages are all around us, yet the

mechanism which leads from exposure to brand
advertising through to sales is not entirely clear.

 Studies have repeatedly demonstrated a clear association between advertising and sales response. Yet the exact
process that leads from the consumer of being exposed to an advertising message through to a purchase or behavioral
response is not entirely clear. Noting the difficulties in explaining how advertising works, one theorist wrote, "Only the
brave or ignorant...can say exactly what advertising does in the market place."
 The advertising and marketing literature suggests a variety of different models to explain how advertising works. These
models are not competing theories, but rather explanations of how advertising persuades or influences different types
of consumers in different purchase contexts. In a seminal paper, Vankratsas and Ambler surveyed more than 250
papers to develop a typology of advertising models. They identified four broad classes of model:  cognitive information
models, pure affect models, hierarchy of effect models, integrative models and hierarchy-free models.

COGNITIVE INFORMATION MODELS

A directory such as Yellow Pages can eliminate the need for extensive

store visits and the need to recall brand names

 Advertising researchers have a long-standing interest in understanding both the degree and type of cognitive
elaboration that occurs when consumers are exposed to persuasive messages. Cognitive information models assume
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that consumers are rational decision-makers and that advertising provides consumers with information utility by
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reducing the need to search for other information about a brand.

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  For example, an advertisement in the Yellow Pages or an online directory means that the consumer does not have to
travel from store to store in search of a product or service. Consumers process this information at a cognitive level
before forming an attitude to the brand and purchase intent. A cognition is any thought that surfaces during the
elaboration of the information. Cognitive information models are also known as the central route to persuasion.
A common theme in cognitive information models is that the net favourability of cognitive responses has a direct influence on
attitude strength. In the cognitive information models, the general path to persuasion is as follows:
Ad cognition→ Attitude to ad (Aad) → Brand cognition → Attitude to brand(Ab) →Purchase Intention (PI)
Theoretical works, combined with empirical studies, suggest that advertising information is more useful for experience
goods (experiential services) than for search goods (tangible products). Research studies also suggest that consumers who
are involved in the purchase decision are more likely to actively seek out product information and actively process
advertising messages while low-involvement consumers are more likely to respond at an emotional level.
PURE AFFECT MODELS

 Pure affect models suggest that consumers shape their preferences to a brand based on the feelings and
attitudes elicited by exposure to an advertising message. When consumers view an advertisement, they not
only develop attitudes towards the advertisement and the advertiser, but also develop feelings and beliefs
about the brand being advertised.
 Pure affect models help to explain the consumer's emotional responses to advertising and brands. These
models suggest that simple exposure is to a brand is sufficient to generate purchase intention. Exposure in
the form of advertising messages leads to an attitude to the advertisement (A ad) which transfers to the
attitude to the brand (Ab) without any further cognitive processing. Exposure it not restricted to physical
contact; rather it can refer to any brand-related contact such as advertising, promotion or virtual brands on
websites.
In pure affect models, the path to communication effectiveness is represented by the following:
Attitude to Ad (Aad) → Attitude to Brand (Ab) → Purchase Intention (PI).
This path is also known as the peripheral route to persuasion . Empirical research in the pure affect sphere
suggests that advertising messages do not need to be informative to be effective, however consumers must like
the advertising execution for the message to be effective. In addition, ad liking and advertiser credibility, may be
especially important for corporate image advertising (compared to product-related advertising).

HIERARCHY OF EFFECTS MODELS

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 Generalized hierarchy of effects sequence (after Lavidge)

 Hierarchical models are linear sequential models built on an assumption that consumers move through a series
of cognitive and affective stages culminating in the purchase decision. The common theme among these models
is that advertising operates as a stimulus and the purchase decision is a response. A number of hierarchical
models can be found in the literature including Lavidge's hierarchy of effects, DAGMAR and AIDA and other
variants. Some authors have argued that, for advertising purposes, the hierarchical models have dominated
advertising theory,  and that, of these models, the AIDA model is one of the most widely applied.
 The AIDA model proposes that advertising messages need to accomplish a number of tasks designed to move
the consumer through a series of sequential steps from brand awareness through to action (purchase and
consumption).
AWARENESS – The consumer becomes aware of a category, product or brand (usually through advertising)
↓
INTEREST – The consumer becomes interested by considering the brand's fit with the consumer's lifestyle
↓
DESIRE – The consumer develops a favorable (or unfavorable) disposition towards the brand
↓
ACTION – The consumer forms a purchase intention or actually makes a purchase

 As consumers move through the hierarchy of effects they pass through both a cognitive processing stage and an
affective processing stage before any action occurs. Thus the hierarchy of effects models all include Cognition (C)-
Affect (A)- Behaviour (B) as the core steps in the underlying behavioral sequence. The underlying behavioral sequence
for all hierarchy models is as follows:
Cognition (Awareness/learning) → Affect (Feeling/ interest/ desire) → Behavior (Action e.g. purchase/ consumption/
usage/ sharing information)
 The literature offers numerous variations on the basic path to persuasion. The basic AIDA model is one of the longest
serving models. Contemporary hierarchical models often modify or expand the basic AIDA model, resulting in
additional steps, however, all follow the basic sequence which includes Cognition- Affect- Behaviour. Some of these
newer models have been adapted to accommodate consumer's digital media habits. Selected hierarchical models
follow:
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Basic AIDA model: Awareness→ Interest→ Desire→ Action

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Modified AIDA model: Awareness→ Interest→ Conviction →Desire→ Action

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 AIDAS Model: Attention → Interest → Desire → Action → Satisfaction

AISDALSLove model: Awareness→ Interest→ Search →Desire→ Action → Like/dislike→ Share → Love/ Hate
Lavidge et al.'s Hierarchy of Effects: Awareness→ Knowledge→ Liking→ Preference→ Conviction→ Purchase
DAGMAR Model: Awareness → Comprehension → Attitude/ Conviction → Action
Rossiter and Percy's Communications Effects: Category Need → Brand Awareness → Brand Preference (A b) →
Purchase Intent→ Purchase Facilitation

 The Purchase Funnel indicates that awareness is a necessary precondition for purchase

 All hierarchical models indicate that brand awareness is a necessary precondition to brand attitude, brand preference
or brand purchase intention. The process of moving consumers from purchase intention to actual sales is known
as conversion. While advertising is an excellent tool for creating awareness, brand attitude and purchase intent, it
usually requires support from other elements in the promotion mix and the marketing program to convert purchase
intent into an actual sale. Many different techniques can be used to convert interest into sales including special price
offers, special promotional offers, attractive trade-in terms, guarantees or a strong call-to-action as part of the
advertising message.

 In order to penetrate markets, it is essential that high levels of awareness are created as early as possible in a  product
or brand life-cycle. Hierarchical models provide marketers and advertisers with basic insights about the nature of the
target audience, the optimal message and media strategy indicated at different junctures throughout a product's life
cycle.

 For new products, the main advertising objective should be to create awareness with a broad cross-section of the
potential market as quickly as practical. When the desired levels of awareness have been attained, the promotional
effort should shift to stimulating interest, desire or conviction. The number of potential purchasers decreases as the
product moves through the natural sales cycle in an effect likened to a funnel. Early in the campaign, the marketers
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should attempt to reach as many potential buyers as possible with high impact messages.
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  Later in the cycle, and as the number of prospects becomes smaller, the marketer can employ more tightly targeted
promotional activities such as personal selling, direct mail and email directed at those individuals or sub-segments
more likely to exhibit a genuine interest in the product or brand.
INTEGRATIVE MODELS

 Integrative models assume that consumers process advertising information via two paths – both cognitive (thinking)
and affective (feeling) simultaneously. These models seek to combine the type of purchase with the consumer's
dominant mode of processing. Integrative models are based on research findings indicating that congruence between
personality and the way a persuasive message is framed.
 That is, aligning the message framing with the recipient's personality profile may play an important role in ensuring the
success of that message. In a recent experiment, five advertisements (each designed to target one of the five
personality traits) were constructed for a single product. Findings suggest that advertisements were evaluated more
positively when they aligned with participants' motives. Tailoring persuasive messages to the personality traits of the
targeted audience can be an effective way of enhancing the message's impact.
 There are many integrative frameworks. Two of the more widely used models are the grids developed by Foote, Cone,
Belding (FCB) (see below) and another devised by Rossiter and Percy, and which is an extension of the FCB
approach. These planning grids are very popular with advertising practitioners because of their ease of application.
FOOTE, CONE, BELDING (FCB) PLANNING GRID

THE FCB PLANNING GRID

Info processing Thinking Feeling

Type of Decision

 High-involvement 1. Learn→Feel→Do 2. Feel→Learn→Do The

FCB

Low-involvement 3. Do→Learn→Feel 4. Do→Feel→ Learn

planning grid was developed by Richard Vaughan, who was the Senior Vice President at advertising agency, Foote, Cone
and Belding, in the 1980s. The planning grid has two dimensions, involvement and information processing. Each dimension
has two values, representing extremes of a continuum, specifically involvement (high/low) and information processing
(thinking/feeling). These form a 2 X 2 matrix with four cells representing the different types of advertising effects.
 The FCB planning grid gives rise to a number of implications for advertising and media strategy:
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An expensive car is a high-involvement/ rational purchase (i.e., FCB Quadarant 1)

 Quadrant 1:  High-involvement/ rational purchases: In the first quadrant consumers learn about a product through
advertising after which they develop a favourable (or unfavourable) disposition to the product which may or may not
culminate in a purchase. This approach is considered optimal for advertising high ticket items such as cars and
household furniture. When this is the dominant approach to purchasing, advertising messages should be information-
rich and media strategy should be weighted towards media such as magazines and newspapers capable of delivering
long-copy advertising.
 Quadrant 2: High-involvement/ emotional purchases: In the second quadrant, audiences exhibit an emotional response
to advertisements which transfers to products. This approach is used for products such as jewellery, expensive
perfumes and designer fashion where consumers are emotionally involved in the purchase. When this mode of
purchasing is evident, advertising should be designed to create a strong brand image and media should be selected to
support the relevant image. For example, magazines such as Vogue can help to create an up-market image.

Impulse purchases are low-involvement/ emotional purchase items that make consumers feel good (i.e., FCB Quadrant 4)

 Quadrant 3: Low-involvement/ rational purchases: The third quadrant represents routine low-involvement purchases
evident for many packaged goods such as detergents, tissues and other consumable household items. Consumers
make habitual purchases, and after consumption the benefit of using the brand is reinforced which ideally results in
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long-term brand loyalty (re-purchase). Given that this is a rational purchase; consumers need to be informed or
reminded of the product's benefits. Advertising messages should encourage repeat purchasing and brand loyalty while
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media strategy should be weighted towards media that can deliver high frequency required for reminder campaigns
such as TV, radio and sales promotion.

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  Quadrant 4: Low-involvement/ emotional purchases: In the final quadrant, consumers make low-involvement, relatively
inexpensive purchases that make them feel good. Impulse purchases and convenience goods fall into this category.
The purchase leads to feelings of satisfaction which, in turn, reinforces the purchase behavior. When this approach is
the dominant purchase mode, advertising messages should "congratulate" customers on their purchase choice and the
media strategy should be weighted towards options that reach customers when they are close to the point-of-purchase
such as billboards, sales promotion and point-of-sale displays. Examples of this approach include "McDonald's – You
Deserve a Break Today" and "L'Oreal- Because You're Worth It".
HIERARCHY-FREE MODELS

 Many authors have treated reason (rational processes) and emotion (affective processes) as entirely independent.  Yet,
other researchers have argued that both reason and emotion can be employed simultaneously, to process advertising
information.

 Hierarchy-free models draw on evidence from psychology and consumer neuroscience which suggest that consumers
process information via different pathways rather than in any linear/ sequential manner. Thus, hierarchy-free models do
not employ any fixed processing sequence.
 These models treat advertising as part of the brand totality. Some hierarchy-free models treat brands as 'myth' and
advertising as 'myth-making' while other models seek to tap into the consumer's memories of pleasant consumption
experiences (e.g. the MAC- Memory-Affect-Cognition model). Hierarchy-free models are of increasing interest to
academics and practitioners because they are more customer-centric and allow for the possibility of consumer co-
creation of value.

ADVERTISING PLANNING

 Advertising planning does not occur in a vacuum. Advertising objectives are derived from marketing objectives.
Therefore, the first step in any advertising planning is to review to the objectives as set out in the marketing plan. This
is designed to ensure that all promotional efforts, including advertising, are working towards achieving both short-term
and long-term corporate and marketing goals and align with the company's values and vision. [72]
REVIEW THE MARKETING PLAN

 A review of the marketing plan can be a relatively simple process or it can involve a formal review, known as an  audit.
The review or audit might consider such issues as prior marketing communications activity, an evaluation of what has
been effective in the past, whether new market research studies are warranted, an outline of competitive advertising
activity and a review of budgetary considerations.

 The marketing plan can be expected to provide information about the company's long and short-term goals,
competitive rivalry, a description of the target market, products offered, positioning strategy, pricing strategy,
distribution strategy and other promotional programs. All of this information has potential implications for developing
the advertising program. The advertiser must study the marketing plan carefully and determine how to translate the
marketing objectives into an advertising program. Each advertising campaign is unique, so that the review requires a
great deal of analysis as well as judgement.
OVERALL COMMUNICATIONS OBJECTIVES

 Communications objectives are derived from marketing objectives. However, communications objectives must be
framed in terms of communications effects. For example, a company's short-term marketing objective might be to
increase sales response for a given brand. However, this objective would require that a large number of consumers are
aware of the brand and are favourably disposed towards it. Furthermore, consumers' purchase intentions may be
dependent on other marketing activities such as access, price, the ability to trial the brand prior to final purchase and
other marketing activities. It is unfair to hold marketing communications accountable for all sales when it is only one
element in the total marketing effort.
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 While advertising is an excellent tool for creating awareness and interest in a brand, it is less effective at turning that
awareness and interest into actual sales. To convert interest into sales, different promotional tools such as personal
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selling or sales promotion may be more useful. Many authors caution against using sales or market share objectives
for marketing communications or advertising purposes.

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Communications objectives might include such things as to:

 increase purchase
 encourage trial
 encourage loyalty
 position or re-position a brand
 educate customers
These will need to be translated into advertising objectives.

TARGET MARKET AND TARGET AUDIENCE

Relationship between target market and target audience

 The review should take note of the overall target market. However, this does not necessarily mean that the advertising
campaign will be directed at the total target market.
 Marketers and advertisers make a distinction between the target audience for an advertising message and the target
market for a product or brand.
 By definition, the target audience is the intended audience for a given advertisement or message in a publication or
broadcast medium, while the target market consists of all existing and potential consumers of a product, service or
brand. Companies often develop different advertising messages and media strategies to reach different target
audiences.
o For example, McDonald's Restaurants uses the anthropomorphic brand characters, Ronald McDonald and
Hamburgler, in its advertising directed at children who are important brand-choice influencers. However, for
adult target audience members, McDonald's uses messages that emphasise convenience and quality. Thus
the target audience for a given advertising message may comprise only a subset of the total market as
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defined in the marketing plan.

o Careful perusal of the marketing plan will assist marketers in the process of defining the optimal target
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audiences for specific advertising objectives.

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 PUSH VS PULL STRATEGY

 The communications objectives will, at least in part, depend on whether the marketer is using a push or pull strategy. In
a push strategy, the marketer advertises intensively with retailers and wholesalers, with the expectation that they will
stock the product or brand, and that consumers will purchase it when they see it in stores.
 In contrast, in a pull strategy, the marketer advertises directly to consumers hoping that they will put pressure on
retailers to stock the product or brand, thereby pulling it through the distribution channel.
  In a push strategy the promotional mix would consist of trade advertising and sales calls while the advertising media
would normally be weighted towards trade magazines, exhibitions and trade shows while a pull strategy would make
more extensive use consumer-oriented advertising and sales promotions while the media mix would be weighted
towards mass-market media such as newspapers, magazines, television and radio.
DEVISING ADVERTISING OBJECTIVES

 Setting advertising objectives provides the framework for the entire advertising plan. Therefore, it is important to
specify precisely what is to be achieved and outline how advertising will be evaluated. Advertising objectives should
be Specific, Measurable, Achievable and Time-dependent (SMART).
 Any statement of advertising objectives must include measurement benchmarks – that is the norms against which
advertising effectiveness will be evaluated. One of the first approaches to setting communications-oriented objectives
was the DAGMAR approach (Defining Advertising Goals for Measured Advertising Results) developed in the
1960s. While memorable, the DAGMAR approach fails to provide concrete guidance on how to link advertising
objectives with communications effects.
 In order to set realistic and achievable advertising objectives, most advertisers try to link advertising or communications
objectives with the communications effects. Rossiter and Bellman have argued that, for advertising purposes, five
communications effects should be considered, namely:
1. CATEGORY NEED: The consumer's acceptance that the category (the product or service) is necessary to
satisfy some need
2. BRAND AWARENESS (BRAND RECOGNITION AND BRAND RECALL): The consumer's ability to
recognise a brand or to recall a brand name from memory
3. BRAND PREFERENCE (OR BRAND ATTITUDE): The extent to which a consumer will choose one brand
over other competing brands in the category
4. BRAND ACTION INTENTION (PURCHASE INTENT): The consumer's self instruction to purchase a given
brand
5. PURCHASE FACILITATION: The extent to which the consumer knows how and where to purchase the
brand

Managerial Options for Communications Objectives

Target Consumer's State of Mind Communication/ Advertising Objective Advertising Message Example

 Omit category need as an

Pain avoidance: "For fast, sure
Category Need objective of advertising or
pain relief, Anacin"
 Category need already present promotion
 Latent category need  Mention category need to
 No or weak category need remind customer of previously
established need
 "Sell" category need using
15

positive or negative motivations

(e.g. pain removal, pain
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avoidance, dissatisfaction,

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 sensory gratification, social
approval)
Brand Awareness  Use taglines, slogans,
Paired category-brand
 Brand recall jingles to teach brand recall
association: "When you think of
 Brand recognition and strengthen learning
chocolate, think of Cadbury"
 Associate brand name with
category
 Show product packaging or
label in all advertising
Brand Preference  Change to moderate
 Negative preference preference Brand Preference: "The burgers
 Unaware  Create strong preference are better at Burger King (or
 Moderate preference  Increase preference Hungry Jack's)"
 Strong preference  Reinforce strong preference
Purchase Intention  Omit purchase-intention Purchase-intention: "Hurry, hurry
 Low-involvement decision  Generate purchase- last days, offer must expire
 High-involvement decision intention soon"; "Don't wait- limited stocks
available"
Purchase Facilitation  Omit purchase-facilitation
Purchase-facilitation: "Refer to
 Customer knows where to purchase  Incorporate purchase- website for nearest stockist"
product or service and how much to facilitation in all marketing
pay for it communications
 Not obvious where to purchase or
how to find retailer

 For many purchases, category need and purchase facilitation will be present in the customer's mind and can be
omitted from the advertising objectives. However, for some purchases, the customer may not be aware of the product
category or may not know how to access it, in which case these objectives will need to be addressed in the
communications objectives.
 Brand awareness, brand preference and purchase intention are almost always included as advertising objectives.
SETTING ADVERTISING BUDGETS

 A firm's advertising budget is a sub-set of its overall budget. For many firms, the cost of advertising is one of the largest
expenses, second only to wages and salaries. Advertising expenditure varies enormously according to firm size,
market coverage, managerial expectations and even managerial style. Procter and Gamble, the top US advertiser,
spent US$4.3 billion in 2015 on national media (exclusive of agency fees and production costs) while a small local
advertiser might spend just a few thousand dollars in the same period.
 The size of the budget has implications for the promotional mix, the media mix and market coverage. As a
generalisation, very large budgets are required to sustain national television campaigns. Advertisers with tight budgets
may forced to use less effective media alternatives. However, even advertisers with small budgets may be able to
incorporate expensive main media, by focusing on narrow geographic markets, buying spots in non-peak time periods
and carefully managing advertising schedules.
 A number of different methods are used to develop the advertising (and/or marketing communications) budget. The
most commonly used methods are: percentage-of-sales, objective and task, competitive parity method, market share
method, unit sales method, all available funds method and the affordable method.
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[email protected] /SAMAR COLLEGE

PERCENTAGE-OF-SALES METHOD

 Using the percentage-of-sales method, the advertiser allocates a fixed percentage (say 5% or 10%) of forecast sales
value to the advertising budget. This method is predicated on the assumption that advertising causes future sales
volume. The percentage of sales method is the easiest method to use and for this reason remains one of the most
widely used methods for setting budgets.
 A major problem with the %-of-sales method is that there is no consensus about the percentage value to apply. Some
companies use industry averages as a guide to set their marcomms budget. The following table, based on industry
averages, shows that the % value can vary from around 20% of sales to less than 1 percent.

Ad-to-sales ratios for selected industries, 2004

Industry Ad-to-sales ratio

Health services 18.7

Transportation services 14.2

Motion pictures and videotape production 13.7

Food 11.9

Computer & office equipment 11.9

Computer & software wholesale 0.2

OBJECTIVE AND TASK METHOD

 The objective and task method is the most rational and defensible of all budgeting methods. In this method, the
advertiser determines the advertising objectives and then defines specific, measurable communication tasks that will
need to be undertaken to achieve the desired objectives. Cost estimates are developed for each communication task in
order to arrive at a total budget estimate. This method is time-consuming and complex, and as a consequence has
been less widely used in practice, however, recent research suggests that more marketers are taking up this approach.
COMPETITIVE PARITY METHOD

 The competitive parity method allocates the advertising or promotional budget based on competitive spending for
comparable activities. This approach is a defensive strategy used to protect a brand market position.  It assumes that
rival firms have similar objectives and is widely used in highly competitive markets. The main criticism of this method is
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that it assumes competitors know what they are doing in relation to advertising expenditure.
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There are several approaches to using the competitive parity method:

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 a) Allocate the same budget on advertising as a key rival;
b) Allocate the budget based on the industry average expenditure levels;
c) Allocate a similar percentage-of-sales as a key competitor;
d) Allocate the same percentage-of-sales on advertising as the industry average;
e) Use competitive activity as a benchmark to which sums are added or subtracted based on managerial judgement.
 Competitive parity requires a detailed understanding of competitor's expenditure in key areas. Market intelligence used
to inform this approach can be obtained by consulting company annual reports and also from commercial research
service providers such as Nielsen's AdEx.
 Other methods used to set advertising and promotional budgets include the market share method, unit sales
method, all available funds method, affordable method, marginal analysis and others. Contemporary budgeting rarely
relies on a single method, but instead uses a combination of methods to guide the marketer in determining the optimal
expenditure levels.
DEVISING THE CREATIVE STRATEGY

 The creative strategy is also known as the message strategy. The creative strategy explains how the advertising
campaign will address the advertising objectives. Developing the creative strategy typically begins by identifying the big
idea (also known as the creative concept that will establish the intended product position in the minds of the customer.
Another way of thinking about the creative concept is that it refers to the one thing that will make consumers respond.
The creative concept should show how the product benefit meets the customer's needs or expectations in a unique
way.
 Laskey et al. developed a typology of nine creative strategies. Initially devised for television, this typology has been
widely adopted for other media including print media and social media.
 Laskey, Day and Crask's typology first identifies two broad classes of creative strategy:

TYPOLOGY OF CREATIVE STRATEGIES

INFORMATION
DESCRIPTION USES
AL

Comparative Explicit comparison of brand and rival(s) Use with care in competitive markets

Unique Selling Use in categories with high levels of

Highlight a unique benefit that is meaningful to consumers
Proposition (USP) technological differentiation

Use when differentiation is difficult or

Pre-emptive Be the first to use a common attribute or benefit
impossible

Use when brand has demonstrable point

Hyperbole Gross exaggeration to highlight unique benefit
of difference
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Generic Use for new categories, new products or

Focus on product category
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informational repositioning

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Transformational

Focus on the consumer's lifestyles e.g. activities, interests,

User Image
work

Claim of superiority based on extrinsic factors such as Use with low-tech goods where
Brand Image customer perceptions, designed to give the brand a differentiation is difficult e.g. coolness,
'personality' prestige

Focus on the brand experience, the ownership experience, Use with experiential goods where
Use Occasion
the shopping experience or the consumption experience differentiation is difficult

Use for new categories, new products or

Generic Focus on product class with emotional appeal
repositioning

 INFORMATIONAL: rational appeals that typically provide information about the brand's benefits
 TRANSFORMATIONAL: emotional appeals that assist consumers to imagine an aspirational lifestyle
 Informational appeals typically involve factual claims that list the product's benefits in straightforward manner and are
more likely to be used with high involvement goods.
o Transformational appeals play on emotions and are designed to transform the consumer’s perceptions of
themselves or of the product.
o Transformational appeals are more likely to be indicated for low-involvement goods or services. Emotional
appeals are often known as a soft-sell approach. Because they bypass rational cognitive processing,
transformational appeals are less likely to result in counter-arguing in the consumer's mind.
 In addition to determining the overall creative strategy, the advertiser also needs to consider thecreative execution –
which refers to the way that the message is presented. Examples of creative execution include:
o problem-solution formats, o guarantee,
o fear appeals, o celebrity endorsement,
o sex appeals, o testimonial,
o humor, o news style,
o parody, o scientific appeals,
o slogans or jingles, o dramatization and
o mnemonics, o product demonstration.
o slice-of-life,
MEDIA PLANNING
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 Integrating the creative and the media can result in imaginative and
powerful messages that grab attention and are noticed

Strategic media planning consists of four key decision areas:

1) Setting media objectives (with reference to both marketing and

advertising objectives);

2) Developing a media channel strategy for implementing media

objectives – the broad vision of when and how to reach target
audiences;

3) Designing media tactics – specific instructions about media

vehicles, placement, preferred position;
CLASSIFICATION OF ADVERTISING

Classification of Advertising 4) Devising procedures for evaluating the effectiveness of the media
1. PRINT ADVERTISING - The print media has been plan.used for advertising since long. The newspapers and magazines are quite
popular modes of advertising for different companies all over the world. Using the print media, the companies can also promote their
products through brochures and fliers. The newspaper and magazines sell the advertising space and the cost depends on several
factors. The quantity of space, the page of the publication, and the type of paper decide the cost of the advertisement. So an ad on
the front page would be costlier than on inside pages. Similarly an ad in the glossy supplement of the paper would be more
expensive than in a mediocre quality paper.
2. BROADCAST ADVERTISING - This type of advertising is very popular all around the world. It consists of television, radio, or
Internet advertising. The ads on the television have a large audience and are very popular. The cost of the advertisement depends
on the length of the ad and the time at which the ad would be appearing. For example, the prime time ads would be more costly
than the regular ones. Radio advertising is not what it used to be after the advent of television and Internet, but still there is specific
audience for the radio ads too. The radio jingles are quite popular in sections of society and help to sell the products.
3. OUTDOOR ADVERTISING - Outdoor advertising makes use of different tools to gain customer’s attention. The billboards,
kiosks, and events and tradeshows are an effective way to convey the message of the company. The billboards are present all
around the city but the content should be such that it attracts the attention of the customer. The kiosks are an easy outlet of the
products and serve as information outlets for the people too. Organizing events such as trade fairs and exhibitions for promotion of
the product or service also in a way advertises the product. Therefore, outdoor advertising is an effective advertising tool.
4. COVERT ADVERTISING - This is a unique way of advertising in which the product or the message is subtly included in a
movie or TV serial. There is no actual ad, just the mention of the product in the movie. For example, Tom Cruise used the Nokia
phone in the movie Minority Report.
5. PUBLIC SERVICE ADVERTISING - As evident from the title itself, such advertising is for the public causes. There are a host
of important matters such as AIDS, political integrity, energy conservation, illiteracy, poverty and so on all of which need more
awareness as far as general public is concerned. This type of advertising has gained much importance in recent times and is an
effective tool to convey the message.

mmunication go
persuasion and
higher levels of
required. To ach
awareness, thre
be sufficient, bu
act on that awar
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of exposure may
theorists have d
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sophisticated de

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 assist with plann
frequency levels
Planners also ne
combined effect
frequency (GRP
campaign, the s
both broad reac
people to the me
frequency (expo
times to the mes
campaign weigh
for budgets and
In an intensive c
weight campaign
strategy is norm
towards main m
the most cost ef
reaching large a
relatively high fr
create stable bra
levels.[115]
Media channel s
See also: Adver
selection and M

The first channe

needs to be mad
a concentrated c
a dispersion cha
Concentrated c
In a concentrated approach the planner invests most of the media expenditure in a single
medium or a narrow range or media.
Dispersion cha
In a dispersion approach, the planner spends across a broad range of advertising media.
The main advantage of a concentrated channel strategy is that the advertiser has the
opportunity to achieve a high share-of- voice and can become the dominant advertiser in the
selected channels. A dispersion approach allows the advertiser to reach a broader cross-
section of the defined target market.
With reach and
in place, the pla
the media mix a
media vehicles t
media planner m
the advertising b
across the relev
TV; 30% Mags;
21

home). To make
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planner requires
the target marke

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 habits. Accordin
channel strategy
understanding o
what each type
terms of audienc
[117]

22
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 Media audience
23

See also: Audie
measurement, M
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circulation, New

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 Ratings, Nielsen
Readership Surv

Media audience
feature of media
purpose of medi
waste in advertis
the media availa
and services".[117
audience for prin
cinema and onli
newspaper is a
research, often c
media owners. I
advertising indu
associations, en
research compa
audience measu
methodology us
then becomes k
currency in audi
Industry membe
research and sh
countries, where
fragmented or w
industry associa
organisations m
measurement se
there is said to b
Research comp
methodologies d
when media is u
collection. All the
involve sampling
representative s
recording their m
extrapolated to t
[120]
 Media owner
findings with pro
selected findings
general public v
company or an e
commission, est
audience resear
Media research
regulation and th
methodologies a
metrics.[121] Medi
both audience s
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set advertising r
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 Measures of me
especial interest
Print Media

 Circulation: 
issue sold (i
a circulation
 Readership:
who have se
edition of the
(independen
 Readership
psychograph
of readershi
surveys)
Broadcast Med

 Average aud
of people wh
or given pro
thousands o
known as a 
Audience Ra
 Audience sh
(or viewers)
given time p
percentage
potential for
audience sh
dividing a gi
audience by
channels).
 Audience po
people in a g
conform to a
the number
(or radio) se
people aged
potentials ar
census figur
the potential
 Audience m
number of lis
switch chann
period.
 Audience pr
by selected
25

psychograph
 Cumulative
Page

number of d

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 in a given tim
as reach.
 People Usin
number of p
to any chann
period.
Out-of-home m

 Opportunitie
measure of
were expose
example, the
past an outd
period
Internet and dig

 Site traffic: T
website with
a month)
 Unique visito
of different v
given time p
 Site stickine
time a perso
measure of
 Average pag
number of d
a visitor to a
engagemen
 Click throug
people who
or advertisin
 Cost per clic
of generatin
 Rate of retur
unique visito
 Bounce rate
leave the sit
time (second
Although much o
data is only avai
prospective adv
published for the
topline survey fin
of freely availab
geographic mark
26

provides princip
main media aud
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speaking marke

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Notes:
* Also see Nielsen Media, for Trends in Canadian TV Viewing
** English is one of the three official languages spoken in Malaysia. Print and broadcast
media are normally segmented into language first and demographics second.
*** There is so single, official currency for measuring TV audiences in Malaysia. Currently
two competing companies provide data, using different methodologies (Nielsen Media and
Kantar Media)
**** Think TV is a consortium of commercial TV networks that oversees the TV ratings
process
27

Media buying[ed
Main article: Me
Page

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 While it is certai
advertising spot
newspapers, ma
most media buy
Prices depend o
network, the vol
the booking and
promotions such
purchased close
Many advertiser
large media age
media agencies
purchasing by b
agencies benefi
lower rates and
services such as
Buying advertisi
that most media
to day, creating
from time to time
be used as a ge
indicative advert
American nation
time viewing hou

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Notes:
* Rates for programs such as American Idol increase as the program moves closer to finals
** Rates for Mon-Fri programs such as Jay Leno vary depending on the day of the week and
the expected audience size
Pulling it all toge

The media schedu

placement

A media schedu
channels used in
broadcast dates
Broadly, there a
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 Blitzing,continuity

Blitzing: one concentrated burst of intense levels of advertising, normally during the initial
period of the planning horizon
Continuity: a pattern of relatively constant levels throughout a given time period or campaign
(i.e. a relatively expensive spending pattern)
Flighting: an intermittent pattern of bursts of advertising followed by no advertising (i.e. a
moderate spending pattern)
Pulsing: a combination of both continuity and pulsing; low levels of continuous advertising
followed by bursts of more intense levels of advertising; (i.e. alternates between a high
spending pattern and a low spending pattern)
Empirical suppo
research sugges
in strong levels o
subsequent fligh
to a continuous
A major conside
main is to place
make their purch
grocery buyer do
Wednesday nigh
supplemented w
supermarket or
consumers carry

Measurin
See also: Adver
30

Advertising is a
Page

deliver strategic
Advertising man

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 Hence, most cam
advertising budg
requires improve
the desired adve
consumer respo
Broadly, there a
combination of b
monitoring of ad

 Pre-testing: qualitative and quantitative measures taken prior to running an

advertisement with a view to gauging audience response and eliminating potential
weaknesses

 Post-testing: qualitative and quantitative measures taken during or after the target
audience has been exposed to the message or advertising campaign and used to track
the extent to which advertising is achieving the desired communications objectives.
Pre-testing[
Sound pre-testin
(i) relevant to the communications objectives;
(ii) agree on how results are to be used;
(iii) use multiple measures;
(iv) be theoretically grounded – i.e. based on a model of human response (e.g. hierarchy of
effects);
(v) consider multiple exposures;
(vi) test comparably finished executions;
(vii) control the exposure context;
(viii) define the relevant sample;
(ix) demonstrate reliability and validity;
(x) take baseline (i.e., pre-exposure) measurements and/or use control groups
Specific types o
biometric testing
Copy testing[ed
Copy testing is t
are briefly discu
Mock-ups[edit]
See also: Storyb
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 A template used f

Researchers oft
seen by the adv
gauging audienc
theatre tests. A
capture advertis
Types of adverti

To pre-test advert

Rough art: very rough drawings of the creative concept

Comps: (abbreviation of "composition art") refers to rough art included along with copy,
slogans and campaign strategy
Rip-o-matics: very rough versions of a TV commercial that include stock images and film
footage designed to emulate the look and feel of the final creative execution; ripomatics are
often called "mood" or "concept" videos.[138]
Photo-matics: include photographs along with the intended audio
Storyboards: a sequence of drawings or photographs accompanied by relevant copy and
designed to resemble the final creative execution of a film or digital TV commercial.
Animatics: a more elaborate version of a storyboard that includes dialogue, sound tracks and
voice overs that are intended to represent a more polished version of the final creative
execution.[139]
Projective tech
See also: Projec

In projective tec
association, sen
attitudes or moti
techniques have
Physiological me
For decades, re
response, electr
response.[141] Wit
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well as emotiona
Page

Some of the tec

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 Pupil dilation[e
The amount of p
task. Pupil dilatio
dilation suggests
used to investiga
Eye tracking[ed
See also: Eye tr

While viewing an
This shows the l
used to fine tune
Galvanic skin r
See also: Galva

Galvanic skin re
and electrical ac
Electroencepha

EEG testing is mo

An electroencep
using alternative
is a cumbersom
Functional mag
See also: Funct

FmRI is a techn
associated with

Post-testing
The aim of post-
fine-tuning can o
advertising prog
(DAR), campaig
Starch scores[e
33

Starch scores w
Page

shown a magaz
respondent to in

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(1) Noted – the percentage of readers who recognize the advertisement as one they
previously saw in the magazine issue (designed to capture the advertisement's ability to grab
attention)
(2) Associated – the percentage of readers who saw or read any part of the advertisement
that clearly indicated the brand advertised (designed to indicate the level of brand
processing)
(3) Read most – the percentage of readers who read half or more of the ad's written material
(an indicator of reader involvement or engagement)
Day-after-recall
Day-after-recall
something spec
(a) Unaided recall – when respondents remember any commercials for the product category
in question
(b) Aided recall – when respondents remember seeing a commercial for Brand X
(c) Copy points – when respondents can recall what the brand showed, looked like and the
main points of the commercial
Tracking[edit]
See also: Ad tra

Ad tracking or ca
testing is used to
during an advert
eventually decay
way that adverti
determine when
Advertising retur
Advertising retur
term and long te
customer loyalty

Careers[ed
Advertising man
outlet, or may be
group of brands
campaigns.
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