Designing advertising programs

Commercial Communication Prof. MARIA SIMONOVA

ADVERSTING
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by any identified sponsor. Its role is to shift the products demand curve upwards. The spenders include not only business forms but museums, professionals, and social organizations that advertise their causes to various target publics. Organizations obtain their advertising in different ways:
Small companies: advertising is handled by someone in the sales or marketing department who works with an advertising agency. Large companies: has its own adverstising department, whose manager reposrts to the vice-president of marketing. This departments develops the total budget, help develop advertising strategy, approve advertising agency ads and campaigns, and handle direct-mail advertising, dealer displayes, and other forms of advertising not ordinarily performed by the agency.

Types of advertising
Informative adv; used to inform consumers about a new product or feature & to build primary demand. Persuasive adv; used to build selective demand for a brand by persuading consumers that it offers the best quality for their money. Comparison adv (knocking copy); used to compare one brand directly or indirectly to one or more other brands. Reminder adv; used to keep consumers thinking about a product.

Developing an advertising program

The five mayor decisions in developing an advertising program, known as the five Ms, are:
Mission: What are the advertising objetives ?

Money:

How much can be spent?

Message:

What message should we sent?

Media:

What media should be used?

Measurement:

How should the results be evaluated?

SETTING THE ADVERTISING OBJECTIVES

Objectives must flow from prior decisions on:
Target market Market positioning Marketing mix.

In an ideal world, all ADVERTISING CAMPAIGNS should be underpinned by a set of sound and complete objectives. These should be:
Explicit Commonly agreed Unequivocal Specific advertising objectives Calibrated Testable. How to turn adverstising objectives into specific measurable goals - Defining Advertising Goals for Measured Advertising Results (DAGMAR) developed by Colley:

EXAMPLE

The fact is, as surveys repeatedly show, that typical advertisers find it difficult to articulate objectives which meet these criteria. Example: In a case history intended to demonstrate its skills and efficiency, an advertising agency explicitly stated five objectives for an advertising campaign:
increase consumer awareness rebuild trade confidence in the brand motivate and support the trade increase brand sales; increase market share

These were explicit, at least. Whether they had been commonly agreed before the campaign or whether the decision was a posthoc rationalisation for the purposes of the case history must remain an open question. Four of the five do not relate specifically to advertising because they require the interaction of other elements of the MARKETING MIX.

SETTING THE ADVERTISING OBJECTIVES

Those remaining are not calibrated. 'Increase awareness' is perhaps the most commonly encountered of all advertising objectives, but it fails to specify: of what, among which target audience, by how much, compared with when, and within what time period. It is furthermore untestable because it does not specify how the increase in awareness will be measured. Whether or not this list of objectives satisfies the last remaining criterion, being unequivocal, is more a subjective judgement than objective, but the point is in any case already made. It is disturbing that this carelessness with objectives persists 35 years after Russell H. COLLEY'S celebrated treatise was reprinted in the Harvard Business Review. People remember his DAGMAR model of advertising effect but forget what the acronym stood for, which was the title of the treatise: 'Defining Advertising Goals for Measured Advertising Results'. The point is, of course, that meaningful measurement of effectiveness (see ADVERTISING TESTING) is impossible unless satisfactory objectives have first been specified. Colley himself listed 52 advertising 'goals' which might be relevant in practice, and they are an object lesson to practitioners in satisfying the criteria of usefulness offered above.

Setting the advertising objectives

For example, in its classic comparative campaign, Avis, the car rental company, positioned itself against market-leading Hertz by claiming Were number two, so we try harder. In the UK, Korean carmaker Hyundai sought to raise awareness of its cars with a series of light-hearted efforts: Even a kettle has a longer guarantee than Rover. Another example is the claims and counter-claims between airline companies regarding who offers the widest and longest seats in business-class flight cabins. Virgin Atlantics recent ad campaign for its new Upper Class Suite reminds business class travellers that its fully flat bed measures at least 7 and a half inches longer and up to 13 inches wider than BAs Club World seat, hence making it the biggest boy in business class.

DECIDING ON THE ADVERTISING BUDGET

Large consumer-packaged-goods companies use image advertising extensively and are uncertain about its effect, since it doesnt produce inmediate sales. They over spend as a form os insurance against not spending enough. In addition, their advertising agencies have a vested interest in convincing the companies to put most of their promotional funds into advertising. Finally, the companies get low efficiency out of their dollars by doing too little front-end work (marketing reseach and strategic positioning) and too much back-end work (copy testing).
It has a carryover effect that lasts beyond the current period current expense + investment that builds up intangible value called good will. Search Engine Marketing is Vital for Consumer Packaged Goods Companies http://www.loreal.com/_en/_ww/index.aspx?

Industrial companies rely heavinly on their salesforce to bring in orders. They do not spend enough on advertising to build awareness and comprehension. They understimate the power of company and product image in preselling industrial customers.
http://www.repsol.com/es_es/todo_sobre_repsol_ypf/inventemoselfuturo/default. aspx

DECIDING ON THE ADVERTISING BUDGET

How much impact does advertising really have on inducing brand switching or brand loyalty? Advertising appears effective in increasing the volume purchased by loyal byuers but less effective in winning new buyers. For loyal buyers, high level of exposure per week may be unproductive because of a leveling off ad effectiveness Advertising appears unlikely to have some cumulative effect that leads to loyalty Features, displays, and especially price have a stronger impact on response that does advertising. Gerry Tellis Advertisings impact is grossly underestimated when only a one-year perspective is employed. The whole subject of advertising effectiveness is still poorly understood and awaiting evidence from further carefully empirical studies. IRI.

DECIDING ON THE ADVERTISING BUDGET

Specific factors to consider in setting the advertising budget:
Objective and task method. Stage in the Product Life Cycle. Market share and consumer base. Competition and clusters Advertising frequency. Product substitutability.

Advertising-expenditure models:
Vidale & Wolfe: larger advertising budget, the higher the sales-response rat, the higher the sales-decay rate; the higher the untapped sales potential. John Little: Adaptative-control method: analyze averagesales.

DECIDING ON THE ADVERTISING MESSAGE

Advertisers go through three steps to develop a creative strategy: Message generation Message evaluation and selection Message execution

DECIDING ON THE ADVERTISING MESSAGE

MESSAGE GENERATION In principle, the products message should be decided as part of developing the product concept; it expresses the major benefit that the brand offers even within the this concept, there may be latitude number of possible messages. Marketer might want to change the message without even changing the product, especially if consumers are seeking new or different beneficts form the product. Methods to generate possible advertisign appeals:
Inductive method: talking to consumers, fealers, experts, and competitors.
A leading hair-spray company carries aout continuous consumer research to determine consumer satisfaction with existing brands and attributes. If consumers what strong holding power, the company considers reformulating its product and using the new appeal.

Deductive method:

DECIDING ON THE ADVERTISING MESSAGE How many alternative ad themes should the advertiser create before making a choice?
The more ads that are independently created, the higher the probability of finding an excellent one. The more time spent on creating ads, the higher are the costs.

Developing advertising strategy

The Absolut team and its ad agency meet once each year with a slew of magazines to set Absoluts media schedule. The team first goes through the 800 produced ads, which all run frequently in a copy rotation, and, if needed, the agencys creative department then creates the media-specific ads. The result is a wonderful assortment of very creative ads for Absolut, tightly targeted to audiences of the media in which they appear. For example, an Absolut Bravo ad in playbills has roses adorning a clear bottle, whereas business magazines contain an Absolut Merger foldout. In some cases, the creatives even developed ads for magazines not yet on the schedule, such as a clever Absolut Centerfold ad for Playboy magazine. The ad portrayed a clear, unadorned playmate bottle (11-inch bust, 11-inch waist, 11-inch hips). In all, Absolut has developed more than 800 ads for the almost two-decade-old campaign. At a time of soaring media costs and cluttered communication channels, a closer cooperation between creative and media people has paid off handsomely for Absolut. Largely as a result of its breakthrough advertising, Absolut now captures a sizeable share of the global vodka market.

Message strategy
Ikea and Guinness acknowledge that their service or product is not perfect, and then turn these failures into winning advertising copy. The culture of honesty is seen in Guinnesss attempt to advertise one of the most annoying things about drinking stout the long pouring time. Drinkers get fed up waiting for Guinness to be poured. The company therefore decided to tackle this in its popular ad campaign using the strapline, Good things come to those who wait. In the case of Ikea, one bold campaign in the UK tells people the truth about Ikea stores. The ad features a tattooed giant who shouts about the furniture stores long queues, its lack of assistants and the hassle of self-assembly. The ad is honest by suggesting that Ikea is not about service. Customers are therefore spared all that better, bigger, brighter advertising hype and told the truth and why Ikea is like it is. So far, Ikea thinks that it is working and business remains buoyant, so much so that the retailer continues to open more stores in the country, which happens to be one way to deal with the fruits of its success its hellishly overcrowded stores.

Message Evaluation

Evaluate alternative messages. Need to have one core selling proposition. Tweet suggested that messages are rate on desirability, exclusiveness, and believability.

Message Execution
The messages impact depend not only upon what is said but also on how it is said. The choice of headlines, copy, and so on, can make a difference in the ads impact:
Lalita Manrai reported a study in which she created two ads for the same car. The first ad carried the headline a new car; the second, the headline is the car for you?. The second headline utilized and advertising strategy called labeling, in which the consumer is labeled as the type of person who is interested in that type of product. The two ads also differed also in that the first ad described the cars features and the second described the cars benefits. In the test, the second ad far outperformed the first ad in terms of overall impression of the product, reader interest in buying and likehood of recomending it to a friend.

Message execution can be decisive for those products that are higly similar (detergents, cigarretes, cofee, vodka)

Execution Styles
Slice of life Lifestyle Fantasy Mood or image Musical Personality symbol Technical expertise Scientific evidence Testimonial evidence

Message Execution
Rather than claiming simply that a BMW is a well-engineered car, BMW uses more creative and high-impact phrasing: The ultimate driving machine. Instead of saying that Hagen-Dazs is a good tasting ice-cream, its ads say that it is Our passport to indulgence: passion in a touch, perfection in a cup, summer in a spoon, one perfect moment. Its not that Philishave gives optimum shaving satisfaction due to its high quality and advanced technology. Rather, use the shaver For a better, closer shave. And Stella Artois is not simply a high-priced, highquality beer, but instead, Stella Artois (is) reassuringly expensive.

Interactive Online advertising

Online advertising expenditure is growing faster than any other sector in the marketing communications industry. Advertising, and indeed all digital promotional activity, needs to be planned and managed in just the same way as traditional media. Setting suitable goals is part of this process and Cartellieri et al. consultants with McKinsey, provide a useful set of objectives in this context:
delivering content: click through to a corporate site that provides more detailed information (e.g. health advice at www.nhsdirect.co.uk/); enabling transactions: a direct response that leads to a sale (e.g. air travel at www.easyjet.com/); shaping attitudes: development of brand awareness such as product launches (eg http://www.hillaryclinton.com/?splash=1) ; soliciting response: encouraging interaction with new visitors (eg. www.towardssustainability.co.uk/) improving retention: reminding visitors and seekers of the organisation and developing reputation and loyalty (eg www.ferrymiles.com/) .

ADVERSTING TOOLS
Print and broadcast ads Packaging-outer Packaging inserts Motion pictures Brocheres and booklets Posters and leaflets Directories Reprints of ads Billboards Display signs Point of-purchase displays Audiovisual materials Symbols and logos

ADVERSTING
Many large companies have a separate advertising department able to perform a wide variety of functions. Smalls departments generally subcontract for creative services.
PRESIDENT

PRESIDENT

Vice President Sales & Marketing Director of Marketing

Director of Sales

Vice President Manufacturing

Vice President Marketing

Advertising

Manager Marketing Services Advertising Manager

Sales Manager
Market development

Marketing research

ADVERSTING SECTOR
Agents participating in the Advertising Sector Advertiser- Clients: companies that advertise themselves and their products. Advertising agency : plan, create, and prepare their clients ad campaigns and promotional materials. Media: sells time (in electronic media) and space (in print media) to carry the advertisers message to the target audience. Production Suppliers: photographers, illustrators, printers, digital services, etc. that assist both advertisers and agencies in preparing advertising material. Include consultants, research firms and other professional services.

ADVERTISING AGENCY
An advertising agency or ad agency is an independent organization of creative people and businesspeople who specialize in developing and preparing marketing advertising plans, advertisements, and other promotional tools (American Association of Advertising Agencies). The agency purchases advertising space and time in various media on behalf of different advertisers, sellers (clients), to find customer for their goods and services. Main characteristics:
An ad agency is independent from the client and provides an outside point of view to the effort of selling the client's products or services. An agency can also handle overall marketing and branding strategies and sales promotions for its clients. Typical ad agency clients include businesses and corporations, non-profit organizations and government agencies.

Types of advertising agencies

Ad agencies come in all sizes and include everything from one or two-person shops (which rely mostly on freelance talent to perform most functions), small to medium sized agencies, large independents, and multi-national, multi-agency conglomerates (Omnicom Group, WPP Group, Publicis, Interpublic Group of Companies and Havas). Most full-Service agencies work on a combination of fee-based and commission based compensation. The fee is paid by the entity for which the marketing is being done. The commission is a payment from the media to the agency and is usually equal to 15% of the cost of the advertisement. The broadcast media, radio and television, traditionally pay a commission. Not all advertising is created by agencies; companies that create and plan their own advertising are said to do their work in-house.

Types of advertising agencies

We can differentiate this type of advertising agencies: Full-service Interactive Agencies Search Engine Marketing (SEM) and Search Engine Optimization (SEO) TRENDS: The recent boost in Interactive Agencies can also be attributed to the rising popularity of web-based social networking and community sites. MySpace, Facebook and YouTube: some Interactive Agencies have started offering personal and corporate community site development as one of their service offerings. It still may be too early to tell how agencies will use this type of marketing to monetize client ROI, but all signs point to online networking as the future of brand marketing.

Types of advertising agencies

Full-service, or media-neutral advertising agencies produce work for many types of media, creating integrated marketing communications. Interactive Agencies: companies that provide specialized advertising and marketing services for the digital space. The 'digital space' translates to the Internet, Kiosks, CD-ROMs, DVDs, and Lifestyle Devices (iPod, PSP, and Mobile). may differentiate themselves by offering a mix of: Web Design/Development Search Engine Marketing Internet Advertising/Marketing E-Business/E-Commerce consulting. Others: Digital Brand Development, Interactive Marketing and Communications Strategy,, Interactive Video brand experiences, Web 2.0 website design and development, eLearning Tools, email marketing, Content Management Services, web application development, Data Mining & ROI Assessment. Search Engine Marketing (SEM) and Search Engine Optimization (SEO) firms have been classified by some as 'agencies' because they create media and implement media purchases of text based (or image based, in some instances of search marketing) ads. This relatively young industry has been slow to adopt the term 'agency', however with the creation of ads (either text or image) and media purchases, they do technically qualify as 'advertising agencies'. Recent studies suggest that both SEO and SEM are set to outpace more traditional channels of media spending over the next 3-5 years.

Inside the Agencies

Creative department: The people who create the actual ads form the core of an advertising agency. Creative teams may be permanent partnerships or formed on a project-by-project basis. Account Service: The other major department in ad agencies is account services or account management: the sales arm of the advertising agency. An account executive (one who works within the account services department) meets with the client to determine sales goals and creative strategy. They are then responsible for coordinating the creative, media, and production staff behind the campaign. Throughout the creative process, they keep in touch with the client to update them on the ad's progress and gain feedback. Upon completion of the creative work, it is their job to ensure the ad's production and placement Creative Services 'Production: The creative services department may not be so well known, but its employees are the people who have contacts with the suppliers of various creative media. When dealing with the major media (broadcast media, outdoor, and the press), this work is usually outsourced to a media agency which can advise on media planning and is normally large enough to negotiate prices down further than a single agency or client can. Modern agencies might also have a media planning department integrated, which does all the spot's planning and placements

Inside the Agencies

Traffic department regulates the flow of work in the agency. It is typically headed by a traffic manager (or system administrator). Traffic increases an agency's efficiency and profitability through the reduction of false job starts, inappropriate job initiation, incomplete information sharing, over- and undercost estimation, and the need for media extensions. In small agencies without a dedicated traffic manager, one employee may be responsible for managing workflow, gathering cost estimates and answering the phone, for example. Large agencies may have a traffic department of ten or more employees. Research: research for the uses and advantages of a product, analyze current and potential customers and try to determine what will influence them to buy. Media planning and buying

Ad agencies
OMNICON GROUP: Omnicom Group (NYSE: OMC) is a strategic holding company that manages a portfolio of global market leaders. Our companies operate in the disciplines of advertising, marketing services, specialty communications, interactive/digital media and media buying services.

Global Advertising Brands:

BBDO Worldwide DDB Worldwide TBWA\Worldwide

http://www.omnicomgroup.com/OurCompanies/GlobalAdvertisingAgency Networks

Ad agencies

WPP Group: WPP is one of the world's largest communications services groups. We are made up of leading companies in: Advertising; Media Investment Management; Information, Insight & Consultancy; Public Relations & Public Affairs; Branding & Identity; Healthcare Communications; Direct, Promotion & Relationship Marketing; Specialist Communications

http://www.wpp.com/wpp/companies/company-list.htm

SELECTING THE ADVERTISING AGENCY

DIRECT SELECTION: Consultand Agencies characteristics. Economc situaation. Clients list Experience. Personal relationships. BIDDING PROCESS: Creative competition Strategic competition

INVOICING
COMMISION SYSTEM Between 1 - 15% of the purchased media cost as a rebate. Ex. Suppose the agency buys 60.000 of magazine space for a client. The magazine bills the agency for 51.000 keeping the 9.000 commission. Advantages:
Simplicity Proportional cost to the budget Payment is done afterwards

Disadvantages:
No relation between work and investment. Not objective for selection media. The agency takes care of the negotiation with the media

FEE SYSTEM Advantages:

Direct relation with the agencys work. Objectivity selecting media. Independent to budget. Recommended to enable stable relations with agencies.

OBJECTIVES SYSTEM
Related with selling results. Notoriety.

In the advertising business, the life cycle of the agencycliente relationship has four stages: pre-relationship, development, maintenance and termination.
Check-list for Agency Review Ways to be a better client

Factor affecting the client-agency relationship:

Chemistry Communication Conduct Changes

THE MEDIA OF ADVERTISING

Media commonly describes channels of mass communication such as television, radio, news papers, and magazines. But it also referts to other communications cehicles such as:
Direct mail Out of home media (transit, billboards) Specialized media (aerial /Blimps, inflatables) Specially advertising items (imprinted coffe mugs, ballons, etc.) New communication technologies (Internet, TV, etc).

THE MEDIA OF ADVERTISING

PRINT MEDIA

Refers to any commercially published, printed medium (magazines, newspapers) that sells advertising space to a variety of advertisers. Companies may also publish their own magazines for customers. Print media include also directories (Ex. Yellow Pages) and programs used at sporting events and theatrical performances.

THE MEDIA OF ADVERTISING

ELECTRONIC MEDIA

Includes radio an TV and used to be called broadcast media.

THE MEDIA OF ADVERTISING

OUT OF HOME MEDIA

The major categories are:

Outdoor advertising (billboards) Transit advertising (bus, taxi and subway advertising)

THE MEDIA OF ADVERTISING

INTERACTIVE MEDIA

The use of the word interactive is important as it denotes the key characteristic of this form of marketing communications. It signifies the ability of all participants in a communication network to respond to messages, often in real time. It indicates that this type of communication environment is open, that is, more democratic than conventional marketing communications. Cover a wide spectrum of electronic environments, one that is not limited or defined by the Internet. For example, mobile communications do not operate online yet can be used to reach people digitally wherever they are and engage them interactively.

Fill (2008)

THE MEDIA OF ADVERTISING

Interactive marketing communications concerns the process whereby organizations attempt to engage individuals with messages that are delivered through electronic channels and which offer all parties the opportunity to respond. Interaction can occur through the same or different media as the original message but the purpose is to build and sustain relationships that are based on mutual satisfaction achieved through the exchange of information, goods or services that are of value to those involved. Interactivity normally precedes the establishment of dialogue between participants in the communication process. This in turn enables all participants to contribute to the content that is used in the communication process.

ADPROSUMER

advertiser + producer + consumer

SocialTec 31 de marzo de 2008

Fase 0

Fase 1

Fase 2

Travel 2.0

Web 2.0

Intermediares

Web sites

1. New Line Cinema trabaja en una nueva pelcula con el titulo de Snakes on a Plane con Samuel L. Jackson 2. La noticia llega a la blogosfera y se crean miles de post sobre la pelcula 3. Cafepress.com pone a la venta una camiseta para sus fans 4. Un blog no oficial se convierte en el foco de la blogosfera 5. 8,360 blogs enlazan al mismo 6. Los fans solicitan que Samuel L. Jackson pronuncie la frase I have had it with these mother-fucking snakes on this mother-fucking plane 7. New Line pierde control total sobre la campaa de marketing 8. Siguen la actividad de los fans, cambian el guin de la pelcula, aaden la frase de Samuel J. Jackson y por supuesto pierde la autorizacin para todos los pblicos (PG13)

Tirso Maldonado / Jimmy Pons

1. Un blogger trabajando para un proveedor de Dunkin Donuts en el Sur de Corea publica un post con el nombre de Truth About Dunking Donuts 2. Se acusa a la empresa de las condiciones sanitarias de la preparacin de los productos 3. Publica una foto de uno de los cocineros y sus malas prcticas en la preparacin 4. La empresa logra que se retire el post pero el eco alcanza la blogosfera 5. La noticia aparece en el Korea Times

Tirso Maldonado / Jimmy Pons

Streisand Effect
1. El piloto Gabrielle Adelman y el fotgrafo Kenneth Adelman fotografan la costa Californiana 2. Barbara Streisand exige que retiren las fotos de su casa 3. Las fotos aparecen publicadas en un gran nmero de blogs 4. Al buscar en Google Barbra Streisand house aparecen todas las fotografas 5. Techdirt publica el concepto Streisand effect

Tirso Maldonado / Jimmy Pons

Sistema de Gestin de Destinos 30 de Enero de 2008

P.07

Herramientas de tecnologa social

Aplicaciones
Search engine

Referencias

Aplicaciones
Mapas y direcciones

Referencias

Photos & vdeos

Buscador de ofertas

Evaluation

Buscador de blogs

Podcast/Videocast

Planificador de viajes

Communities

IM

Enciclopedias y traductores Mundos virtuales

Suscripcin RSS

Parejas

Guas de viaje
SocialTec 31 de marzo de 2008

Bookmarking social

Memorable and attention-getting words must be found:

THEME 7-up is not coca cola Let us drive you in our bus instead of driving your car Shop by turning the pages of the telephone directory If you drink a beer, Shaefer is a good beer to drink We dont rent as many cars, so we hado to do more for our customers Red Roof Inns offer inexpensive lodging CREATIVE COPY The un-coca Take the bus, and leave the driving to us Let your fingers do the walking The beer to have when you are hainv more than on We try harder

Sleep cheap at Reed Roof Inns

http://www.kristofcreative.com/experience/case_studies/examples.sht ml World's Top 50 Agency Companies http://adage.com/datacenter/article?article_id=126698