Chapter Sixteen Advertising in an e-commerce World.

Chapter SixteenChapter Sixteen

Advertising in an e-commerce Advertising in an e-commerce WorldWorld

ObjectivesObjectivesObjectivesObjectives

Understand purpose of advertisingDifferentiate primary and selective demand

advertisingDiscuss advertising development stagesUnderstand role of communications objectives in

advertising processDiscuss advertising over the the product life cycleSurvey advertising creative platformsCompare advantages and disadvantages of

various advertising mediaExplore advertising effectiveness measuresDiscuss ethical issues of advertising

Understand purpose of advertisingDifferentiate primary and selective demand

advertisingDiscuss advertising development stagesUnderstand role of communications objectives in

advertising processDiscuss advertising over the the product life cycleSurvey advertising creative platformsCompare advantages and disadvantages of

various advertising mediaExplore advertising effectiveness measuresDiscuss ethical issues of advertising

Product AdvertisingProduct AdvertisingProduct AdvertisingProduct Advertising

Two types:Direct-action advertisement:

stimulates immediate purchase

Indirect-action advertisement: stimulates sales over the long run

Two types:Direct-action advertisement:

stimulates immediate purchase

Indirect-action advertisement: stimulates sales over the long run

Institutional AdvertisingInstitutional Advertising

Objectives:Promote

organizational imageStimulate product

category demandBuild industry goodwill

Advertising Planning and Advertising Planning and DevelopmentDevelopment

Advertising Planning and Advertising Planning and DevelopmentDevelopment

Advertising execution Advertising execution and evaluationand evaluation

Advertising execution Advertising execution and evaluationand evaluation

MarketingMarketingstrategystrategy

MarketingMarketingstrategystrategy

Specific advertisingSpecific advertisingobjectivesobjectives

Specific advertisingSpecific advertisingobjectivesobjectives

AdvertisingAdvertisingbudgetbudget

AdvertisingAdvertisingbudgetbudget

CreativeCreativestrategystrategyCreativeCreativestrategystrategy

MediaMediaselectionselectionMediaMedia

selectionselection

AdvertisingAdvertisingproductionproduction

AdvertisingAdvertisingproductionproduction

Communication GoalsCommunication Goals

Four broad communication goals:

Generate attentionBe understoodBe believedBe remembered

Four broad communication goals:

Generate attentionBe understoodBe believedBe remembered

Advertising Objectives Advertising Objectives and Product Life Cycleand Product Life CycleAdvertising Objectives Advertising Objectives and Product Life Cycleand Product Life Cycle

0

5

10

15

20

25

30

35

40

SA

LES

Preintroduction

ScreenScreenconceptsconcepts

Introduction

PrimaryPrimarydemand:demand:InformInform

Growth

ExtensiveExtensiveadvertisingadvertisingspending:spending:PersuadePersuade

Maturity

Reminder Reminder & & emotional emotional ads & ads & promo:promo:RemindRemind

Decline

MinimalMinimalif anyif any

Primary demand:Product class as a

whole.Informational

Selective demand:Stimulate demand

for a brandPsychological or

emotional dimensions

Consumption situations

Building DemandBuilding Demand

The Appeal:The Appeal:What to SayWhat to Say

What product offersWhy customer should buy

Sex appealLifestyle compatibleProblem solving

ThemesPositioning

Execution:Execution:How to Say ItHow to Say It

SpokespersonEmotional toneSituationCreative platform

How to Say It: How to Say It: Execution of the appealExecution of the appeal

Story line Product uses Problem solutions Slice of life Demonstration Comparative advertising Testimonial Lifestyle Still life

Association Montage Jingle

Effective AdvertisingEffective AdvertisingEffective AdvertisingEffective Advertising

Copy AppealCopy Appeal Visual AppealVisual Appeal

Hierarchy of EffectsHierarchy of Effects

Attention

Desire

Interest

I’LL BUY IT!

Action

OutdoorOutdoormediamedia

Other: Other: Transit Transit

PrintPrintmediamedia

BroadcastBroadcastmediamedia

In-storeIn-storemediamedia

Mass MediaMass Media

Interactive MediaInteractive MediaInteractive MediaInteractive Media

Company Web Company Web sitesite BannerBanner

AdsAds

RichRichmediamedia

Direct MarketingDirect MarketingDirect MarketingDirect Marketing

Letters,Letters,bill insertsbill inserts

FaxFaxadvertisementsadvertisements

PhonePhone

E-mailE-mail

Hello, Pat. You’ve got mail!

Print Media Print Media Advantages/DisadvantaAdvantages/Disadvanta

gesges

Print Media Print Media Advantages/DisadvantaAdvantages/Disadvanta

gesgesNewspapers:+ Geo. selectivity,

flexibility, editorial support

- Lack of permanence, poor quality of print, limited demographics

Magazines:All above plus:+ Broad selectivity, long-life

ad, picture quality- Long lead time, color

expensive

Newspapers:+ Geo. selectivity,

flexibility, editorial support

- Lack of permanence, poor quality of print, limited demographics

Magazines:All above plus:+ Broad selectivity, long-life

ad, picture quality- Long lead time, color

expensive

Broadcast Media Broadcast Media Advantages/DisadvantaAdvantages/Disadvanta

gesges

Broadcast Media Broadcast Media Advantages/DisadvantaAdvantages/Disadvanta

gesgesTelevision:+ Show & tell, selectivity,

penetration- Expensive, perishable,

clutter, videotape skippingRadio:+ Selectivity, flexibility,

inexpensive- Fleeting, clutter, no visual,

background media

Television:+ Show & tell, selectivity,

penetration- Expensive, perishable,

clutter, videotape skippingRadio:+ Selectivity, flexibility,

inexpensive- Fleeting, clutter, no visual,

background media

Direct Media Direct Media Advantages/DisadvantageAdvantages/Disadvantage

ss

Direct Media Direct Media Advantages/DisadvantageAdvantages/Disadvantage

ssInternet/Interactive:+ Measurement, lengthy copy,

interactive, inexpensive- No universal access, unknown

audienceDirect mail/Catalog:+ Selective,measurement,

lengthy copy possible, reader governs exposure

- Expensive, no editorial support, limited interest

Internet/Interactive:+ Measurement, lengthy copy,

interactive, inexpensive- No universal access, unknown

audienceDirect mail/Catalog:+ Selective,measurement,

lengthy copy possible, reader governs exposure

- Expensive, no editorial support, limited interest

Direct Media Direct Media Advantages/DisadvantageAdvantages/Disadvantage

ss

Direct Media Direct Media Advantages/DisadvantageAdvantages/Disadvantage

ssPoint-of-Purchase:+ Impulse buying, “selling”,

unifies product & ad- Placement difficult to control,

clutter, limited creative & customer use

Outdoor ads+ High reach & frequency,

selectivity, impact, inexpensive- Brevity, image, location choice

Point-of-Purchase:+ Impulse buying, “selling”,

unifies product & ad- Placement difficult to control,

clutter, limited creative & customer use

Outdoor ads+ High reach & frequency,

selectivity, impact, inexpensive- Brevity, image, location choice

Media ConsiderationsMedia Considerations

Schedule

Reach

Frequency

Measuring Advertising Measuring Advertising EffectivenessEffectiveness

Measuring Advertising Measuring Advertising EffectivenessEffectiveness

Developing Messages & Pretesting:Focus groupsQuantitative studies

Posttesting:Recognition & recall testsAttitude change Measuring inquiriesSales performance

Developing Messages & Pretesting:Focus groupsQuantitative studies

Posttesting:Recognition & recall testsAttitude change Measuring inquiriesSales performance

Ethical Issues in Ethical Issues in AdvertisingAdvertising

Deceptive & misleading practices

MisleadingBait and switchPuffery

Public standardsWhat products

allowable?StereotypingSolicitation

Promotions aimed at children

ReviewReviewReviewReview

Understand purpose of advertisingDifferentiate primary and selective demand

advertisingDiscuss advertising development stagesUnderstand role of communications objectives in

advertising processDiscuss advertising over the the product life cycleSurvey advertising creative platformsCompare advantages and disadvantages of

various advertising mediaExplore advertising effectiveness measuresDiscuss ethical issues of advertising

Understand purpose of advertisingDifferentiate primary and selective demand

advertisingDiscuss advertising development stagesUnderstand role of communications objectives in

advertising processDiscuss advertising over the the product life cycleSurvey advertising creative platformsCompare advantages and disadvantages of

various advertising mediaExplore advertising effectiveness measuresDiscuss ethical issues of advertising