1. Advertising Strategy
Week 8
Fall 2007
Ganesh Iyer
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2. Advertising Planning Process
Brand Positioning Target Market
Advertising Objectives
Budget Decisions
Creative Strategy Media Strategy
Campaign Evaluation
Ganesh Iyer
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3. Advertising Objectives
Create awareness for new products
Inform consumers
» of product features and benefits
» price changes
» Important for building primary demand
Persuasion
» Build brand preference or change buyer perceptions
» especially important for building demand in competitive markets.
Reminder advertising: maintain top-of-mind awareness
Ganesh Iyer
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4. Hierarchy of effects
Communication Process
Awareness
Interest
Liking, Preference
Purchase, Action
Ganesh Iyer
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5. Creative Strategy
 Develop the USP “unique selling proposition” or the “Creative
Hook”
Unique Selling Proposition
 Translates “brand positioning” into a compelling message.
 Objective is “Memorability”
Ganesh Iyer
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6. Creative Strategy:
Emotional vs. Rational Appeal
Emotional = appeal to psychological, social or symbolic needs. “Pull at the
consumer’s heartstrings”
Rational = provide information about functional and utilitarian aspects of
the products.
Shift towards emotional execution strategy in the later part of the product
lifecycle
» Intense competition and proliferation of substitutable products
(Michelin)
» Critical to increase “Product involvement”
» http://www.youtube.com/watch?v=sIkQRXkpwQI
» http://www.youtube.com/watch?v=SdPLf3FoInE
Ganesh Iyer
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7. Taxonomy of Emotional Appeals
Fear appeal
 can be an effective motivator but has the danger of alienating
consumers
» Show the consumer how to avoid the problem.
» Provide concrete supporting information
Ganesh Iyer
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8. Taxonomy of Emotional Appeals
Humor
» “Memorability” device.
» Humor should not clutter the product benefits.
» Execution detail: Show consumer how to avoid the problem.
» Pre-test to check if consumer
– i) recalls product benefit
– Attitude_product versus Attitude_ad = will the message be persuasive and will the
product be taken seriously.
» http://www.youtube.com/watch?v=kVCGBohc20k&mode=related&search=
» http://www.youtube.com/watch?v=f3mXaATLeRM
» http://www.youtube.com/watch?v=zV-yGp4l8B8
Fantasy
» seen often in cosmetics advertising
» http://www.youtube.com/watch?v=r1g5qcKcVCM
Ganesh Iyer
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9. Types of Rational / Informational Appeal
Technical Expertise or Scientific Evidence: (Crest…“Look ma no
cavities”)
Comparative: Product features vs. competition (Nike vs. Reebok)
» http://www.youtube.com/watch?v=xhiyDQNmEjY
 Advantages
» High ability to get attention
» Helps in competitive positioning
 Disadvantages
» Advertise the competition. Makes competition more salient.
» Can use only if there is clear objective superiority for the advertised
attribute.
Ganesh Iyer
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10. Media Decisions
 Define the target market.
Quantitative Measures
 Reach: the percentage of people in the target market who are exposed
to the ad campaign during the defined time duration
» 70% of the target market during the first three months of the
campaign
 Frequency: A measure of how many times an average individual in the
target market who have been reached .
Ganesh Iyer
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11. Media Decisions
Advertising Exposure
 Gross Rating Points = 70(Reach) 4(Frequency) = 280 GRP’s
 1GRP = 1 exposure to 1% of the audience.
Qualitative Measures
 Impact; is the qualitative aspect of the medium
» Newsweek vs. The National Enquirer
» Sports illustrated vs. Time for tennis racquets
 Trade-off between reach and frequency
 Pulsing vs. Continuity
» Pulsing most critical for new products. Why?
» Continuity needed when faced with intense competition
Ganesh Iyer
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12. Message
Good advertising creative strategy translates the brand’s
positioning statement into a persuasive and memorable
message. A great creative will provide lasting impact even if
advertising budgets are constrained.
“ How you say it is as critical as what you say”
Ganesh Iyer
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13.  http://www.youtube.com/watch?v=cQZYAd3g8-g
Ganesh Iyer
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