Week FIVEa: Estbalishing Advertising Objectives Flashcards
What are some of the key considerations for setting objectives
Include a precise statement of who, what and when Be quantitative and measurable Specify the amount of change Be realistic Be internally consistent Be clear and put it in writing
WHO -> identify target audience
WHAT -> detail the specific goals (awareness, knowledge, sales)
WHEN -> relevant time frame
Outline some of the IMC objectives
Focused on marketer perspective, and are consumer-oriented
- consumer awareness
- increased attitudes
- trials
- promote additional benefit
- encourage immediate buying
- generate sales leads
- enhance brand image
- increase frequency of use
Outline the five key objectives for advertising
Informing
- Increases awareness of new brands
- Educates about brand features, uses, benefits
- Facilitates the movement to top-of-mind awareness
- Helps increase demand
Persuading
- Attempts to persuade a customer to try the product
- Persuades the consumer to think that their product can achieve the focal benefits
- Influences the idea that it is better than other brands
- Can influence demand for the product category (primary demand) as well as the company’s brand (secondary demand)
Reminding
- Keep the company/brand in the consumers minds
- Some products may only be needed/wanted/used occasionally and consumers may forget that about the brand when it comes to buy
- Often, many products provide similar benefits (eg. food/drink) and reminding keeps those products top of mind eg. Coke
- Reminding may increase use and subsequent repurchase
Adding value
- Advertising can influence perceptions of value of a brand
- Effective advertising can make a brand be seen as more stylish or prestigious
- More advertising often signals that the brand is more popular and subsequently of higher quality
Assisting other company efforts
- Advertising is only one element and so should be used in conjunction with other efforts
- Can communicate price-reductions (sales promotion)
- Help provide base-level information for salespeople (personal selling)
- Assists in identifying brands at a store (point-of purchase)
- Direct consumers to website (digital marketing)
What are the pros and cons of advertising
Benefits -> Can increase revenue - Increase trials - Increase number of customers - Increase repeat purchases - Increase brand equity - can assist in longterm success Drawbacks -> Increasing revenue uncertain - Reducing cost is certain - Profit = revenue - cost - How to measure ROI?
Outline the hierarchy of effects framework
unawareness -> awareness -> expectations -> trial -> beliefs & attitudes -> belief and attitude reinforcement => brand loyalty
How can you use the idea of vaguely right/precisely wrong to improve objective-setting
VAGUELY RIGHT
= may not be able to predict sales accurately and may not be able to say with certainty that marketing led to sales BUT sales/profit is what you care about
PRECISELY WRONG
= may be able to measure awareness, attitudes accurately but since they may/may not result in sales/profit, shouldn’t focus on them
=> by measuring each stage of the hierarchy chain, marketers can see whether their campaigns had the intended effect and if not, can see where in the chain the problem lies
What is media planning
= process of devising a marketing communications strategy that quantifies how investments in money and time will contribute to achieving an organisation’s marketing objective, realtes to aspects such as reach, frequency, recency planning and impact of message delivered
Differentiate between reach and frequency and explain the trade-off between the two
Reach
= percentage of an advertiser’s target audience that is exposed to at least one ad over estbalished timeframe
-> Can increase reach by;
- Varying media (eg. tv, magazine, newspaper)
- Varying vehicles (eg. different tv shows)
- Varying time of day (eg. day vs night)
- More opportunity = more reach (but expensive)
Frequency
= number of times, on average, within a media planning period that members of the target audience are exposed to the advertiser’s message
Trade-off between reach and frequency
- Assuming consistent number of exposures across consumers
- > Show a commercial once on 3 different tv programs or show it 3 times on the same tv program
Reach = percent of target audience exposed to message Frequency = number of times, on average, those consumers are exposed to it
Describe the three-exposure hypothesis and recency planning principle
Three-Exposure Hypothesis = minimum number of exposures needed for advertising to teach consumers about the product and its benefits (3 within 4 weeks)
Recency planning principle = consumer’s first exposure to a marketing message for a brand is most powerful and thus achieving high level of reach should be goal
Outline the different types of scheduling
Continuous schedule
= relatively equal amount of ad spending is invested during each time period
- Good for products/services that are consumed at equal rate throughout the year
Pulsing schedule
= some spending invested during each time period but amount varies period to period
- Good for products/services that are purchased throughout the year but more at specific times
Flighting schedule
= allocates almost no spending during some months and then invests heavily in a few select months
- Good for products that are purchased at specific times
Describe media objectives and the six steps to determining them
= objectives relating to reach, frequency, recency, planning and weight of message delivered
- Designed to meet marketing objectives
- Determine HOW vs marketing communication that determines the who, what, when
- Proportion/ number of the target market the message should reach
- How frequently they need to be exposed
- How much exposure is necessary to meet reach and frequency objectives
- How should the budget be allocated over time
- How close to the time of purchase should audience be exposed to the message
- What is the most cost-effective way to accomplish the marketing and media objectives
What are the factors to consider when establishing marketing communications budgets and the methods for budgeting
Objective
Competitors activity
Funds available (start up vs big firm)
Methods for budgeting
- Percentage-of-sales
- Fixed percentage of past/anticipated sales volume - Competitive parity method
- Exceed or match what competitors are doing - Affordability method
- Only the funds left after everything else is budgeted for are used for advertising - Objective-and-task method
- Establish objectives
- Determine advertising’s role
What are some of the components covered by the Competition & Consumer Act?
Price fixing Misuse of market power Misleading and deceptive conduct Anti-competitive behaviour Exclusive dealing primary and secondary boycotts
