Chapter 5 Advertising PDF

KCOM 328 Advertising Ludi Koekemoer Chapter 5 Advertising Aim of the chapter: 1 What advertising is 5 Specific advertising tasks 2 The classifications 6 Advertising objectives Theories of how Models for setting 3 advertising works...

KCOM 328 Advertising Ludi Koekemoer Chapter 5 Advertising Aim of the chapter: 1 What advertising is 5 Specific advertising tasks 2 The classifications 6 Advertising objectives Theories of how Models for setting 3 advertising works 7 advertising objectives The role of advertising in The role of advertising in 4 marketing 8 building brand equity Learning outcomes Discuss the nature and Define advertising and the 1 implications 5 importance of advertising objectives Outline the classifications 2 of advertising 6 Outline objective setting models Explain some relevant Discuss role of advertising 3 advertising models 7 in building brand equity Discuss the role of advertising Outline the characteristics 4 in the marketing programme 8 of good advertising 5.1 Definition of Advertising “Advertising is any paid form of mass presentation of ideas, products and services by an advertiser, addressed to selected target audiences with the objective of creating awareness, informing, reminding, influencing, and persuading them to buy the product or service or to be favorably inclined towards these ideas, products or services” (Koekemoer 1998) Definition elements Paid form Ideas, goods Selected target and services audience Low-cost mass Objective of the communication Advertiser advertisement 5.2 Classification of Advertising Advertising can be classified by four main criteria: Purpose Target audience Geographic area Medium  5.2 Classification of Advertising 5.2.1 Classification by purpose Primary demand Selective demand Brand advertising Corporate image advertising Commercial advertising Non-commercial advertising Action/response advertising Retail advertising 5.2.1 Classification by Target Audience Consumer Business to business Brand or service Industrial Direct response Professional Trade Agricultural 5.2.3 Advertising by Geographic Area National Local International 5.2.4 Advertising by Medium Print Outdoor o Newspapers o Billboards o Magazines o Transit Broadcast or electronic o Radio o Cinema o Television  5.3 How Advertising Works 5.3 How Advertising Works (contd) Exposure Attention Comprehension Acceptance Retention Action Four Main Frameworks for Advertising Sales framework – ads have direct impact on sales Persuasion framework – ads help to persuade & influence Involvement framework – ads can get the TA involved in the ad e.g., slice of life Salience framework – ads can stand out by being very different to any other ad within the product category 5.3.1 Strong Theory of Advertising 5.3.1 Strong Theory of Advertising Advertising is capable of effecting change in Universally adopted as a Can persuade someone to knowledge, attitudes, foundation for business buy a product never beliefs and behavior of activity previously purchased target audiences Advertising capable of Consumers are apathetic Use of manipulative and and generally incapable of increasing sales at brand psychological techniques processing information and product-type levels intelligently Weak Theory of Advertising  Weak Theory of Advertising 1. Consumer purchasing is driven more by 6. Advertising is not potent enough to habit than by advertising exposure convert those with strong counter beliefs 2. Advertising can improve knowledge and awareness 7. Advertising used as a defense to retain customers and increase usage 3. Consumers selectively expose themselves to advertising 8. Mainly used to reinforce existing attitudes 4. Only perceive advertisements for products of which they already use or 9. Assumes consumers are not apathetic have prior knowledge and are capable of intelligent information processing 5. Only a limited amount of information is communicated  Strong versus Weak Theory Established low New, minor or declining High-involvement involvement products low-involvement products products Do-feel-do Learn-do-feel Learn-feel-do Advertising is a reminder Advertising creates Advertising task is to visibility convince target customers Role of Advertising in the Marketing Programme 5.4.1 Push versus Pull Strategy  Role of Advertising in the Marketing Programme (contd) Advertising affects brand development in five important ways Building and Building and Informing and Introducing Creating an maintaining maintaining persuading new brands or image and brand loyalty brand loyalty the target brand meaning for a among within the market; extensions; brand; and customers; trade. 5.4.2 Product life cycle Tasks of Advertising in Marketing ○ Building awareness ○ Informing the target audience ○ Overcoming misconceptions ○ Generating interest ○ Developing preference Tasks of Advertising in Marketing (cont) Supporting the sales force Generating leads Positioning the product Building credibility Building image Reassuring purchasers and creating trust Reminding consumers  What Advertising Can and Cannot Do Can: Cannot: Differentiate, remind, announce Sell inferior products, reach new brand, create brand everyone, lead to immediate sale, awareness, stimulate impulse solve your marketing problems, purchase, expand the market, save a dying brand (alone), increase sales, announce price persuade everyone change, announce pack change, change attitudes, increase confidence, fight competition, support trade and lower costs of sales. 5.5 Advertising Objectives Criteria for Setting Objectives Precise statement of who, what and when Quantitative and measurable Specify amount of change Realistic Internally consistent Clear and in writing Types of Advertising Objectives Informational Awareness and knowledge Trial purchase, leads and increased usage Attitudinal Associations and feelings Loyalty Behavioural Awareness, knowledge and attitude Trial, Purchase and Repeat purchase Advertiser’s objective and message strategy 5.6 Role of Advertising in Building Brand Equity Rational and emotional 1 Concept of branding 5 elements Brand exists only in and Creation of competitive 2 through communication 6 advantage Brand differentiation Brand relevance Brand must be distinct from Brand esteem 3 competition Brand knowledge 4 Brand is a memory bank  What is Brand Equity? A brand can have high equity, or value as a tradable asset, for many reasons. According to Aaker et al, brands have equity because they have high awareness, many loyal customers, a high reputation for perceived quality, and proprietary brand assets such as access to scarce distribution channels or specific kinds of brand associations, such as personality associations. What is Brand Equity?  Brand Equity (contd) Components of Brand Equity o Brand awareness o Brand associations o Brand reputation o Brand loyalty o Perceived quality 5.6.1 Brand Awareness Durable Sense of Signal of Commitment Salience V and familiarity presence sustainable asset  5.6.2 Brand Associations Anything directly or indirectly Reasons to buy linked to the brand Rational or emotional Instill confidence and trust Brand positioning Basis for brand extensions Assets that can differentiate Competitive advantage 5.6.3 Perceived Quality Value that customers place on products Direct effect on ROI (return on investment) Reduces cost of customer retention Enhances market share Does not increase costs 5.6.4 Brand reputation Positioning Performance Acceptability Wide usage Value for money perception Features and benefits Competitive advantage 5.6.5 Brand loyalty Reduces marketing costs Creates substantial entry barrier for competitors Increases trade leverage Creates positive brand image Allows time to respond to competitive moves 5.7 Characteristics of good advertising Targeted Simple Credible Original Informative Effective