MI5-ADVERTISING STRATEGY PROMOTION 2

8/3/2019 MI5-ADVERTISING STRATEGY PROMOTION 2

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Promotion &

Advertising

Plan

Stphane GELY - 2010


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Elements of the Promotion Mix

Advertising

Ingredientsof the

PromotionMix

Public Relations

Personal Selling

Sales Promotion

Direct Markteting

Internet MarketingStphane GELY - Effectiv 2011 2


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Corporate Image

Advocacy Advertising

Typesof

Advertising

Pioneering

Competitive

Comparative

ProductAdvertising

InstitutionalAdvertising

1. ADVERTISING

Stphane GELY - Effectiv 2011 3


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Are you Push or Pull ?

ProducerRetailers or

WholesalersConsumers

StimulusProducer marketing activities

Demand Demand

ProducerRetailers or

WholesalersConsumersMark. activities Mark. activities

Push

Pull



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Push Strategy Example



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Push Strategy Example



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The Basic Model of Communications

Transitive Model

Sender

AdvertiserMessage and

Medium

Media Mix

Receiver

Target Audience

Encoding

AgencyDecoding

Feedback



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Adverstising Objectives

InformingReminding

Persuading

TargetAudience



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From Marketing

Strategyto

Advertising

Strategy

Creative Brief

Message Planning

Marketing & Communication

Plans & Strategies

Creative Strategy &

Message Execution

Big Idea

Copywriting

Design & Production

Objectives Vs. Effects

Copy Testing

Performance Results

Message Evaluation



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Step 1The Creative Briefing



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Prepared by the account planner for the creativeteam

Summarizes the basic marketing & advertisingstrategy

Clarifies the strategy & key execution details

Provides direction to the creative team to develop acreative concept

The Creative Brief



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The Creative Brief

The Key Points

Background on product/company

Problem or Objectives

Target audience and key insights

Brand position

Communication objectives

Key promise and benefit statement

Media considerations Creative direction

Budget

Timeline Stphane GELY - Effectiv 2011 12


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Step 2

Creative StrategyTo translate the objectives

in creatives advertising



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a. The Big Idea



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The Big Idea

Concept or central theme

of the Campaign



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Ex. NikeJust Do It

Good creative concepts have longevity

and cross many markets.

The Big Idea



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Creative strategy : UNIQUE SELLING PROPOSITION

(USP)

Translates brand positioning into a compelling

message.

Objective is Memorability

Convince cons. to purchase our services/products

A proposal suggested for acceptance



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Creative strategy : USP

Design effective USPs

Biggest Benefits:

Unique:

Fix An Industry "Pain Point" Or "Performance Gap

Be Specific And Offer Proof

Summarize Into One Clear And Concise Sentence:...

Transposable into all marketing materials

Deliver On Your USP's Promise



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Examples

Package Shipping Industry

Pain - I have to get this package delivered quick!

USP - "When it absolutely, positively has to be there

overnight."(FedEx)

Food Industry

Pain - The kids are starving, but Mom and Dad are too

tired to cook!USP - "Pizza delivered in 30 minutes or it's free."

(Dominos Pizza)



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Examples contd.

Real Estate Industry

Pain - People want to sell their house fast without

loosing money on the deal.

USP - "Our 20 Step Marketing System Will Sell YourHouse In Less Than 45 Days At Full Market Value

Jewelry Industry

Pain - The market hates paying huge 300% mark-ups

for jewelry.USP - "Don't pay 300% markups to a traditional jeweler

for inferior diamonds! We guarantee that your loose

diamond will appraise for at least 200% of the purchase

price, or we'll buy it back."Stphane GELY - Effectiv 2011 20


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b. Creative strategy approaches



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Advertising conveys

BeliefsImages

Meanings Feelings

Transformational advertising

So, It must make the product use experience

Richer- More ExcitingWarmer- More Enjoyable



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1. ADVERTISING

Transformational advertising example



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Creative Strategy Approaches

Head and Heart

more rational,

cognitive (thinking)objectives

more emotional,

affective (feeling)objectives



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News

Price

Competitive

Feature

Creative strategy : appeals

Rational Appeals



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Rational Appeals Examples



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Rejection

Fear

Pleasure

Fun


Emotional appeals example



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Example of fear appeal



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Example of popularity appeal

http://nespresso%20commercial%20-%20george%20clooney%20-%20what%20else.avi/


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Socially Based Feelings appeal example



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Socially Based Feelings appeal example


C ti t t l


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Personality Symbol

Humor

Slice of life

FantasyDramatization

Comparison

Animation - MusicalDemonstration

TestimonialScientific or Technical

Straight-sell

Lifestyle

Creative strategy : appealsMost popular styles


S i tifi l l


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Scientific appeals example


Sli f Lif E l


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Slice of Life Example


T ti i l l


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Testimonial example


C ti l


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Comparative example


D t ti l
http://reebok%20vs.%20nike%20bungee%20jumpers%20commercial.avi/


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Demonstration example


Lifestyle example


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Lifestyle example


Humor example


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Humor example

Seinfield & Superman for Amex Commercial

Southwest Airlines commercialOrangina commercial+

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Fantasy appeal
http://southwest%20airlines%20is%20flying%20to%20the%20beaches%20of%20northwest%20florida%20%20jump%21.avi/http://wild%20stunts%20%20shake%20your%20bottle%20%21%20orangina.avi/http://wild%20stunts%20%20shake%20your%20bottle%20%21%20orangina.avi/http://wild%20stunts%20%20shake%20your%20bottle%20%21%20orangina.avi/http://wild%20stunts%20%20shake%20your%20bottle%20%21%20orangina.avi/http://southwest%20airlines%20is%20flying%20to%20the%20beaches%20of%20northwest%20florida%20%20jump%21.avi/http://southwest%20airlines%20is%20flying%20to%20the%20beaches%20of%20northwest%20florida%20%20jump%21.avi/http://wild%20stunts%20%20shake%20your%20bottle%20%21%20orangina.avi/http://wild%20stunts%20%20shake%20your%20bottle%20%21%20orangina.avi/http://wild%20stunts%20%20shake%20your%20bottle%20%21%20orangina.avi/http://southwest%20airlines%20is%20flying%20to%20the%20beaches%20of%20northwest%20florida%20%20jump%21.avi/http://southwest%20airlines%20is%20flying%20to%20the%20beaches%20of%20northwest%20florida%20%20jump%21.avi/


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Fantasy appeal

http://chanel%20o5.avi/


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1. ADVERTISING

Teasing



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1. ADVERTISING

Teasing using a combination of media

150.000 visits on the blog

A combination of means

TV + Radio + Outdoor+ Street + Internet



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b. A copywriting tool :

AIDA Model



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Creative strategy : Hierarchy-of-Effects Model

AWARENESS KNOWLEDGE LIKING

CONVICTIONPURCHASE PREFERENCE



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Creative strategy : AIDA Vs. the Hierarchy of Effects

Attention Interest Desire Action

Awareness

Knowledge

Liking

Preference

Conviction

Purchase

Affectiveemotions.

attitudes

feelingsCognitive

thoughts.

information and facts.

Conativemotives

Stimulates/direct

desires



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Creative strategy : AIDA MODEL

Step 1 : Grab the attention

Powerful words, pictures, design

A question you are answering later (interest and desire)

Express a strong benefit

Express an emotion (joy, fear)

Must be attractive

"How effective is your customer relation?"

Better than We offer you a training on customer relation management".Stphane GELY - Effectiv 2011 46



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Step 1 : Grab the attention contd.

Magazine or newspaper ad -> Headline and picture

Brochure -> Cover

Direct mail -> Copy on outside of envelope or first couple

of sentences in the letter

Radio or television ad -> First few seconds of commercial

Web site -> First screen




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Step 2 : Develop the interest

You have now to convince the reader to go further

What interest for the consumers to use my products

Is the message relevant for the consumer?

Focus on benefits and emotions




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Step 2 : Develop the interest contd.




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Step 3 : Arouse the desire

Dramatize the product

Push the consumer to purchase the product the product in situation

showing the most attractive pictures

play on the storytelling

Focus on the seduction to arouse impulse buying




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Step 3 : Arouse the desire




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Step 4 : Push to act


Print Ads Structure


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Print Ads Structure

Layout

How Elements Are Blended Into a Finished Ad

Visual ElementsIllustrations Such As Drawings or Photos

Body Copy

The Main Text Portion of a Print Ad

Subheads

Between the Headline and the Copy size

Headline

Words on the top of the Ad



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1. ADVERTISING

Ad Analysis


Headline

Visual

Body

Brand Identification


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1. ADVERTISING

Analyze this ads


1. ADVERTISING


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WhiteSpace

Marginal and Intermediate Space That RemainsUnprinted

Format Arrangement of the Elements on the Printed Page

ColorBlack & White or Two-, Three-, or Four-colorPrinting

SizeExpressed in Columns, Column Inches or Portionsof a Page

1. ADVERTISING

Print Ads Layout


1. ADVERTISING


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1. ADVERTISING

TV Advertising


PostProduction

Editing Processing Sound Effect Mixing Duplicating

ProductionFilming, recording, taping, directing actors

PreproductionStoryboard, Productor/Director Selection, planning, budgetting

1 ADVERTISING


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Pretests

Examples:

Consumer jury tests

Physiological tests

Focus Groups

Post-tests

Examples:

Recognition or recall tests

Sales Response

Attitude measures

Audience size measurement

1. ADVERTISING

TEST, TEST AND TEST



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Top 10 Advertiser

Rank Parent Company Ad Dollars Spent(US $)

1 Procter & Gamble Co $2,342,319,397

2 General Motors Corp $1,441,747,399

3 AT&T Inc $1,317,893,377

4Verizon

Communications Inc$1,125,700,512

5 Johnson & Johnson $1,059,109,138

6 Time Warner Inc $878,355,332

7 Toyota Motor Corp $819,377,026

8 General Electric Co $807,869,688

9 Ford Motor Co $742,708,529

10 Pepsico Inc $730,503,931

Source: The Nielsen Company (January 1 September 30, 2008)



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Step 3

Media Planning


S l ti h l it i t i il


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Availability

Cost

Users preference and receivers access Impact

Adaptability to the communication purpose

Adaptability to the message content Type of recipient and their stage in the adoption

process

Selecting a channel : criteria to privilege



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Television

Radio

Cinema

Billboard / Transit Advertising

Press

Web

Communication Methods

Mass Media



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Profiles

of MajorMedia

Types(Source : Pearson Education)



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Media Plan Objectives

Planning of the different elements(Advertising, Personal Selling, Sales Promotion and Public Relations)

to achieve a certain promotional objectiveswithin a targeted market.


Creating a Media Plan


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Creating a Media Plan

Develop Media Plan & Budget

Choose Promotion Mix

Set Promotion Objectives

Identify Target Market

Analyze the Marketplace


Media Plan Metrics


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percentage of the target market

exposed to the ad campaignduring a certain time

Reach

Ex. 80% during the first two months of the campaign

Media Plan Metrics


Media Plan Metrics : reach contd


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Population excluding target market

Target market

Media Overexposure

Media Coverage

Target

Market

Proportion

Full

Market

Coverage

Partial

Market

Coverage

Coverage

Exceeding

Market

Media Plan Metrics : reach contd.


Media Plan Metrics


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how many times an average

individual in the target marketwho have been reached

Frequency

Ex. the message has been seen 4 times on average

Media Plan Metrics


Media Plan Metrics


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Advertising exposure

The Weight of the Message=

Reach x Frequency

GRP (gross rate points)

Ex. :70(Reach) x 4(Frequency) = 280 GRPs(1GRP = 1 exposure to 1% of the audience)

Media Plan Metrics


Media Plan Metrics : Schedule method


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Continuity

Pulsing

Flighting

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Media Plan Metrics : Schedule method


Media Plan Metrics


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Objective cost efficiency

comparison of among

different media

Media Plan Metrics

Cost per Mil (per thousand) C.P.M.

Media Cost

Media Audiencex 1,000

Ex. (Cost : 25,000 / Audience : 1,125,000) x 1,000 = 22


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Dollars Goals

Advertising

ExpendituresObjectives

Measurement

Optimizing the efficiency


SETTING THE ADVERTISING BUDGET


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SETTING THE ADVERTISING BUDGET

Stage in the ProductLife Cycle

Competitionand Clutter

MarketShare

AdvertisingFrequency

ProductDifferentiation

Factors to takeinto account to

budget

Purchasefrequency

Productdurability

Productprice


Top-Down vs. Bottom-Up Budgeting


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Budgeting for Promotional Strategy


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Budgeting for Promotional StrategyPERCENTAGE-OF-SALES & FIXED-SUM-PER-UNIT METHOD

Percentage of either past or forecasted sales or gross margin.

Most frequently used

Easy to apply and simple to justify

Clear method to show the advertising effort

Flexible and evolutionary method

Or fixed money amount for each unit sold or produced..

Last year This year

Sales : 5,000,000

Promotional budget : 300,000

Sales : 6,000,000

Promotional budget : 360,000% of sales

Fixed sumper unit

Forecast calls for sales : 18,000 roomsPromotional budget : 20 by room => 360,000




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Budgeting for Promotional StrategyPERCENTAGE-OF-SALES & FIXED-SUM-PER-UNIT METHOD

IndustryAdvertising as %

of sales

Advertising as %

of margin

Annual ad

growth %

AMUSEMENT PARKS 7 14.3 -6

BUSINESS SERVICES, NEC 0.4 1.1 6.5

HOTELS AND MOTELS 1.6 8 6.6

REAL ESTATE 4.2 19.1 5.5

REAL ESTATE AGENTS & MGRS 4.6 14.6 4.2

REAL ESTATE INVESTMENT TRUST 3.9 9 6.1

RETAIL STORES, NEC 3.7 8.6 6.3

Source : Advertising Age - 2007Stphane GELY - Effectiv 2011 78



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Budgeting for Promotional StrategyBREAK-EVEN-POINT METHOD

ROI Orientated

I want to increase my promotional budget

So, how much must I sell to amortize the investment.

Unit sales price : 100

Variable cost : 60 Contibution margin : 40

Promotion budget for this product : 1,000,000 Market share : 25%

Objective : to appraise a 20% increase in this products promotion budgetconsidering that promotion costs represent fixed cost :

Promotion budget increase

Unit Contribution margin=

200,000

40= 5,000 units




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Budgeting for Promotional StrategyMEETING COMPETITION METHOD

Share of Market - Share of Voicelink between market share to advertising expenditure.

Example :

Competitive Parity you spend in equal amounts to your competitors as apercentage of market share.This is a self-defense method of budgeting marketing andadvertising expenditures

Market Share 20%

Advertising budget 20%

Share of Voice 1




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g g gyTASK-OBJECTIVE METHOD

Marketers determine their promotional objectives,

Then the amount (and type) of promotional spending neededto achieve them is determined.

Example :

Within the two next years, we want 75 percent of the areacompanies to be aware of our new corporate offer

How many promotional budget should we spend?


Allocating to IMC Elements


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Share of Voice Effect on ads budgets


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Share of Voice Effect on ads budgets

Decreasefind

a defensible nicheIncrease to defend

Attack with large

SOV premium

Maintain modest

spending premiumCompetitors

Share

ofVoice

High

Low

HighLow

Your Market Share


Organizational Characteristics


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Organizational Characteristics

Factors that influence advertising and

promotion budgets

The organizations structure

Power and politics

The use of expert opinions

Characteristics of the decision maker

Approval and negotiation channels

Pressure on senior managers to arriveat the optimal budget


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Measuring the Effectiveness of Promotion

Two basic measurement tools:

Direct sales results

Impact on sales revenues for each dollar of

promotional spending

Indirect evaluation

Quantifiable effectiveness indicators : Recall : rate about specific products or advertisements

Recognition

Readership: size and composition of a messagesaudience


Measuring the Effectiveness of Promotion


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EFFECTIVENESS

MEASUREMENT

RatingServices Sales and

Expense AnalysisTest

Marketing

Controlled

Tests

Recall

Tests

g


1. ADVERTISING

I t ti l Ad ti i St t i


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International Advertising Strategies

Standardization

Localization

Combination

MI5-ADVERTISING STRATEGY PROMOTION 2

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Transcript of MI5-ADVERTISING STRATEGY PROMOTION 2