Advertising Lecture
Advertising Lecture
Advertising Lecture
Consumer Behavior – describes how consumers make buying decisions, choose among alternatives
and use products. Studying consumer behavior is an important factor in creating effective
advertising. For example, if a company discovers through research that price is the most important
factor in a consumer’s buying decision for its product, the company’s advertisements can promote
its “low prices.”
Need – is anything you require for survival. Some needs are basic, while others are higher level
- Abraham Maslow’s Hierarchy of Needs, basic physiological needs must be satisfied first
before individuals can focus on higher level needs. Once the basic needs are covered,
security becomes a higher priority for individuals. After people have a sense of physical
and economic security, their attention turns to social needs. Friends, love and sense of
belonging are all part of social needs. Gaining respect and recognition from others
satisfy esteem needs. Running for president of a student organization might be an
attempt to satisfy esteem needs. Self-actualization involves intellectual growth,
creativity and accomplishment. Earning a college degree or taking gourmet lessons are
examples of ways to meet self-actualization needs.
Want – is something that is desired. Wants are not essential for living, but they are important for
maintaining a desired lifestyle. Good marketing and advertising create wants. Flashy
advertisements often create an image that attracts consumers. For example, many perfume and
cologne advertisements use celebrities to create images of beauty, independence and power. These
ads inspire consumers who desire these same qualities to buy perfume or cologne.
Types of Products
1. Convenience products – are purchased regularly without much planning. Consumers want
to purchase convenience products as quickly and easily as possible.
2. Shopping products – consist of products that consumers want to own after they meet
personal needs. They are more expensive than convenience products. Consumers are
willing to spend extra time shopping and comparing before making a buying decision.
3. Specialty products – are those that have a strong brand loyalty. Consumers are reluctant to
buy substitutes because of their positive past experiences with the product.
4. Unsought products – are not actively sought out by consumers. This could be because the
consumer is unaware of the product or service. Advertising is used to increase awareness of
the product.
Buying Motives
The action of individuals are influenced by motivation, which is an incentive or reason for
doing something. Consumer purchases are influenced by short and long-term motivation.
Motivation has a direct influence on consumer buying behavior. Buying motives are the driving
forces that cause consumers to buy products and services.
Three categories of buying motives that influence consumer decisions include emotional
motives, rational motives and patronage motives.
- Emotional motives – reasons to make a purchase based on feelings, beliefs or attitudes.
Consumer purchases may be influenced by such things as love and affection, guilt, fear,
protection, appearance, prestige and popularity. Emotional advertising spends more
time creating a special experience than describing product features.
- Rational motives – purchases that are based on facts or logic. Quality, reliability,
convenience, value and cost are examples of rational buying motives. Rational buying
motives are very important for expensive purchases like homes and automobiles.
- Patronage motives – purchases that are based on loyalty. Consumers may be loyal to a
particular business or specific brand. Loyalty results from previous past experiences or
personal identification with the product or business. A patronage motive is likely the
reason a consumer purchases Coca-cola instead of Pepsi.
Factors Influencing Consumer Buying Decisions
A. Individual Influences
1. Personality – no two people are alike because they have different personalities.
Personality is the set of emotions, traits and behaviors that define an individual.
Personalities influence consumer purchases. An individual’s personality is comprised of
his or her attitude, self-concept and lifestyle choices. An attitude is a state of mind or
point of view. Values, beliefs and feelings contribute to a person’s attitude. Consumers
hold different attitudes about such things as brand name products, luxury items, eco-
friendly business practices and the use of credit. These attitudes shape buying decisions.
Self-concept is how a person perceives him or herself. It consists of self-image and self-
esteem. An individual may choose to buy a sports car instead of a family sedan to
project a youthful image. Lifestyle examines how a person lives as identified by material
goods, activities, interests and relationships. Lifestyle decisions involve housing choices,
family size, leisure activities and community involvement. Lifestyle characteristics can
be used to categorize and target consumers.
2. Gender – men and women have different needs resulting in a variety of gender-specific
products such as health and beauty products.
3. Age – consumer behavior is highly influenced by a person’s age. Wants and needs of
individuals change as they grow older. A person’s age influences the types of products
and services that he or she will buy and the product features that are important.
4. Culture and ethnicity culture – culture can be described as the shared attitudes and
behaviors of a specific social group. The history, beliefs, values, customs and language
of a group make up its culture. Culture is passed on from generation to generation.
Ethnicity is a shared identity with a group of people who have a common heritage or
culture. Culture and ethnic views and values have a strong influence on individual
choices and decisions.
B. Social Influences
The buying behavior of an individual is influenced by his or her social environment. A social
environment consists of other individuals or groups with whom you interact on a regular
basis. School is part of a teen-ager’s social environment.
An organization or group of people that an individual identifies with and admires is
called reference group. Informal reference groups may include friends, family, coworkers
and social organizations. Formal reference groups could include clubs and professional
organizations. To join a reference group, an individual may change his or her behavior and
image to meet perceived group expectations. For example, teens may start wearing a
certain style or brand of clothing to fit in with a peer group.
C. Marketing Influences – consumers have many choices of products and services they can
purchase to meet their needs. Companies rely heavily on advertising and promotion to build
and strengthen product and brand awareness.
1. Advertising Influences – an advertising campaign is a series of related advertisements
with a common theme or idea that focuses on a specific product, service, brand or
message. “Sell the sizzle, not the steak” refers to selling the benefits of a product, not
its attributes (features). A successful advertising campaign combines creativity with a
convincing message that appeals to a strong need or want within the target audience.
Advertisements that succeed in making a personal connection with the consumer can
influence that consumer’s buying decisions. Advertising must be a continuous process.
When advertising becomes stagnant, even valuable brands lose consumer interest and
market share.
2. Promotional Influences
Promotion is any form of communication that a company uses to create a favorable
image of its products or services. Promotions are used to introduce products and
services, stimulate consumer demand/action and increase repeat sales. Coupons and
samples may be handed out to encourage consumers to try a new product. Contests
and giveaways may attract ne customers. Customer loyalty and frequent buyer
programs reward repeat customers with special deals and pricing. Promotional
strategies can be used to match demand with supply.
Magazines – one of the biggest advantages of magazine advertising is the ability to target
specific markets. Magazines also have a long life span. Many consumers save issues of
magazines and look through them again, meaning ads are viewed more than once. On the
downside, magazine advertising can be expensive in comparison to newspaper advertising.
Also, it takes much more time to produce and place an ad in a magazine. As with
newspapers, magazines can be cluttered with ads. In many cases, over half of the pages in a
magazine are devoted to advertising.
Direct mail – can be a highly segmented advertising strategy when businesses use mailing
lists that correlate with their target markets. Also, with the use of mailing lists, the
advertising message can be personalized, which will elicit a more positive response. Direct
mail campaigns are hidden from competitors, making it difficult for them to react quickly. It
is easy to measure the effectiveness of direct mail advertising because the business can track
the replies or orders received in response to the ad. The biggest disadvantage of using
direct mail advertising is that many consumers will treat it like junk mail without even
reading it. Direct mail advertising can be expensive depending on the target market and size
of the campaign.
Flyers and Brochures – flyers may be mailed, distributed door to door, or placed on car
windshields to advertise numerous things, such as community events, grand openings and
special sales. Businesses such as landscapers and painters use flyers to advertise their
services. They are inexpensive form of advertising. Brochures are used to describe a
product or service in an easy to read, eye catching format. Most brochures include color
pictures to illustrate the product or service being advertised. Bi-fold and tri-fold brochures
are common and they are sized so that they can be mailed or displayed easily. Brochures
can be an economical way to advertise. Businesses and other organizations use brochures
to attract prospective customers. When flyers are randomly mailed or placed on doorsteps
and windshields, it is nearly impossible to measure their effectiveness. As with direct mail,
flyers are often ignored. An increasing number of consumers are using the Internet to
gather information about businesses and their products, making brochures less useful.
Brochures often are handed out to people who have no interest in the business. Also,
brochures tend to be easily misplaced.
Outdoor advertising – can take a variety of forms, including billboards, posters, ads on the
sides of buses and at the bus stop shelters, signs in malls, sports arenas and airports and
any other space designed specifically for ads outside the home. It is effective at reaching a
broad market and provides wide exposure for local businesses. Local retailers, service
businesses, entertainment venues, hotels and restaurants are the lading outdoor
advertisers. Billboards are attention getting and provide the round the clock exposure.
Technological advances are making billboards more attractive to advertisers. Digital
billboard displays let advertiser rotates their messages through out the day. The biggest
drawback to outdoor advertising is the limit on the length of the message. People must be
able to view the ad quickly as they drive or walk by it. The location of outdoor advertising
has an impact on its effectiveness. Advertisers must evaluate sites to find the most desirable
ones.
Reach
When choosing a media outlet, advertiser must consider the exposure it offers. The reach is
the total number of people who will be exposed to an advertisement over a period of time. A show
that has higher rating will have a higher reach. The potential reach of a billboard can be measured
by examining traffic statistics. The reach for newspapers and magazines is based upon their
circulation or the number of copies distributed through subscriptions, newsstands, supermarkets,
airports and other locations.
Frequency
Radio, television and newspaper advertisements are repeated frequently to remind
consumers about a product or service. Frequency is the number of times a person is exposed to an
advertisement. Advertisers must consider the number of times the target market needs to be
exposed to a message to meet its objectives. Although one exposure typically is not enough, too
many exposures can cause the consumer to tune out. Higher frequency is more beneficial for new
products or complex products than it is for well-known products.
Lead Time
Lead time is the amount of time required to produce and place an advertisement. Generally,
newspapers require the least amount of lead time, while television requires the most. A newspaper
ad can be written and placed within days, meaning the advertiser can respond quickly to current
events of competitor ads. Radio advertisements also require little lead time. A radio ad can be
submitted within hours of airtime, and changes to the ad can be made quickly and easily. Magazines
require advertisers to submit ads months in advance and after ads are submitted, they cannot be
changed. Television advertisements can take months to produce. The production process is long
and often involves advertising agencies, producers, directors, equipment technicians and actors
among others. The lead time for outdoor advertising can depends on the complexity of the ad and
the availability of the desired location.
Cost
Cost could be the most important factor when it comes to selecting advertising media. The
goal is to reach the most people at the lowest cost while staying within the advertising budget.
Advertising Objectives
1. Build brand awareness
2. Communicate product benefits
3. Encourage trial purchases
4. Create, change or reinforce consumers’ attitude about a brand
5. Attain brand loyalty
Print Advertising
Components of print advertising include the headline, subhead and body copy. A headline
is used to capture the reader’s attention. It may provide information about the brand, emphasize a
brand claim, or arouse the reader’s curiosity. The subhead, which usually appears below the
headline, provides information not included in the headline. Body copy describes the brand in more
detail. Copywriters are challenged to use familiar words and phrases in an interesting and exciting
way.
Art directors are responsible for the visual elements of print advertising. One of the most
important visual element is the illustration, which is the actual drawing, photography or other type
of art used in the advertisement. The illustration should work with the ad copy to attract the
attention of the target audience and communicate brand features or benefits. By creating interest,
illustrations entice people to read the ad copy. Illustrations also help create the desired image for
the brand. If a clothing manufacturing is targeting teen-agers, its print ads may contain pictures of
teens having fun while wearing the manufacturer’s clothing. The pictures set the tone for the ad.
Radio Advertising
Because radio advertising is restricted to an audio-only format, copywriting can be
challenging. Copywriters may decide to use a music format, such as jingle, or a dialogue format
which often involves a conversation between two people. Another option is to write the
advertisement in the form of an announcement to be read by the disc jockey (DJ), news
commentator or even a celebrity. Because most radio ads are limited to 30 to 60 seconds, the
copywriter must capture the listener’s attention early. Short words and sentences should be used so
they can be processed easily. The ad should create images in the minds of listeners. Finally, because
there are no visuals, the brand name should be repeated several times to make an impression.
Television Advertising
Television provides a highly creative opportunity for copywriters. Television commercials
can evoke emotions and communicate brand values in ways that other advertising formats cannot.
Copywriting for television advertising must sell the brand while entertaining the audience.
Copywriters are challenged to coordinate the words with the visual images. The ad copy should not
be too wordy so it doesn’t interfere with the visual impact.
Copywriters work with art directors to create the storyboard, which is a sketch that provides
the play-by=play sequence of visual scenes and ad copy used in the television advertisement. The
storyboard is the roadmap for coordinating these elements. The copywriter and art directors also
work with the producers and directors of the television commercial to make sure the copy support
and enhances the video.
Digital Advertising
Copywriting for digital/interactive media is very challenging. It is a cross between print
advertising and television advertising. Even though the message is in print format, it often has a
video or audio element. Copywriters have to appeal to vastly different audiences on company
websites, blogs, social media sites and mobile devices. Audiences for digital advertising often seek
out the ads, meaning they have more incentive to read or watch the ads. Consumers prefer
interactive ads that allow them to customize the content of the web page by entering personal
information. Digital advertising is effective at raising brand awareness.
Brand Equity – is the value that a company realizes from having a product with a recognizable name.
it is built on brand recognition, perceived quality and reliability, longevity, brand loyalty and often,
memorable advertising campaign.
Brand Awareness – the extent to which a brand is recognized and associated with a specific product
or service. It does not mean that the people prefer the brand – only that they can identify it.
Brand Loyalty – is the consumer’s commitment to purchase one brand over all other brands.
Viral Branding – attempts to reach customers by creating a “buzz” about a brand through online
sord-of-mouth advertising. Social media sites are used by consumers to spread the word about a
product or service.
Brand Image – is the consumer’s impression of a brand. It consists of the thoughts, feelings
associated with a brand. These associations are created through the consumer’s experience and
observations.
Repositioning – involves changing consumers’ perception about a brand. New competitors may
enter the market and consumers’ preferences and attitudes may change. Repositioning helps
breathe new life into an old brand, making it more appealing to more consumers. BMW
repositioned its brand by targeting the consumers’ emotions. Ultimate Driving Machine tagline to
Sheer Driving Pleasure
MEDIA SELECTION
The strategist has to go through 3 stages of decision-making
1. Decide on the type of medium – should it be television, print, outdoor, social media
2. Specify the vehicle to be employed – if television is the choice, should the ad be aired in
soap opera or telenovela, comedy programs, newscast or suspense or detective shows
3. Decide on specific show
ATTENTION-GETTING FACTORS
Creators of advertising list the following for securing attention:
1. Headline
2. Illustration
3. Layout
4. Color
HEADLINE – refers to the body of large display appear usually at the upper portion of the
advertisement. It is the attention-getter
KINDS OF HEADLINE
1. News headline – takes the form of an announcement. Announcement may be about the
arrival of a new product or service improvement
2. Command or mandatory headline – begins with the imperative form of verb. It urges the
reader to take advantage of the benefits of product or service
3. Testimonial headline – presents a personality, often well-known who tells the reader about
his satisfaction
4. Question headline – asks questions to which the reader cannot find a satisfactory answer
without examining
5. 1-2-3 headline – it outlines the specific advantages promised to the reader
6. How-what-why headline – promises the reader specific benefits and information
LENGTH – no standard or absolute length of headlines, one word to more than a dozen words
CHARACTERISTICS OF HEADLINE
1. Must be written from the consumer’s point of view
2. Must stress the reader’s interest
3. Must be sincere and believable
4. Must be clear and the idea it expresses should be relevant to the product advertised
ILLUSTRATION
People are more interested in pictures combined with words than words alone.
Functions of Illustration
1. To attract attention to the advertisement itself
2. It supports the sales idea or argument
3. It associates the product with a person or class
Forms
1. Photograph
2. Pen and ink drawing
3. Wash drawing
4. Scratch board
5. Charcoal, pencil or crayon drawing
For full-color advertisements, the illustration may be in the form of color photograph or
transparency, water color painting, oil painting, colored ink or crayon drawings
Characteristics of Illustrations
1. They must be keyed to the reader’s self-interest
- Emphasizing the reader’s self-interest is the core of all advertisement
- The form of illustration must be chosen in terms of the reader’s social, cultural and
experience background
- An advertised product will not interest a reader unless he can relate it to his own
experience
2. They must clearly show the product or its use.
- Words are powerful, yes when used by the expert writer. But words alone will not be
enough in compelling reader’s attention. They must be supported by dramatic visual
devices.
3. They must relevant to the headline and copy theme.
- Pictures of attractive women are natural attention-getter but to use them to illustrate a
product like automatic water pumps or heavy machinery is ill-advised since they distract
from rather than focus reader’s attention to the product
4. They must be accurate and believable
- Illustration showing Filipino farmers wearing shoes while tilling their farns are not
accurate and therefore unbelievable.
- Filipino housewives do not work in their kitchens wearing high-heeled shoes.
COLOR IN ILLUSTRATIONS
Value of Color – color gives realism to the presentation of the product, making the advertised
product almost as vivid as in the window display. It is important in the outdoor field, billboards,
posters, neoen and electric signs and spectaculars.
COPY – is the text or words of the advertisement which presents the advertiser’s message in a
persuasive, convincing manner. The body copy is the opportunity to get into detail; an elaboration
of a consumer’s needs or insights to demonstrate to him how the brand understands him, the
support ideas that make claims believable, details a consumers will have to know to purchase your
product. Body copy can be as long as the page will allow, or as short and concise as a few lines.
Some ads don’t even need body copy because other elements in the ad already say what has to be
communicated. A fashion ad need not elaborate in words what is already shown visually. Copy or
body copy is the heart of advertising.
LAYOUT
Eyes read from left to right and the mind usually remembers the last thing it sees, that is
why items of importance are usually placed on the right hand side of a page. Examine an ad. More
often than not, the brand’s logo would be on the lower right hand side. Why? Art directors assume
that, that is the last thing the eye will see before the reader flips to the next page.
Filipino Values in Advertising
Advertising has been the main tool of business in communicating product benefits to mass
consumers. The informative and persuasive powers of advertising have resulted in a better
consumer choice, business growth and spurred by competition, better products and innovations.
However, as selling medium that relies heavily on the use of artistic tools such as language,
photography, visual arts, music, special effects and celebrities.
Positive Values
In general, values are a set of beliefs and traditions that guides a person’s action in his
relations with fellow human beings, other creatures and his environment. Human beings have
values. Racial groups have values. Families have values. Individuals have values. Values are
transmitted or inherited.
I. EXECUTIVE SUMMARY
A brief digest of the entire plan. Purpose of summary is to give top management the
high
lights of the plan in a form easily read and understood. Just one or two pages summary of what is
proposed and highlights the most important areas like advertising and creative strategy, media
strategy, sales promo and budget.
3. Corporate Profile
4. Population – General Perspective
a. Demographic characteristics
b. Psychographics
c. Identification of target market
Primary – buyers/users
Secondary – those with influence in buyers’ demographics/psychographics
5. SWOT Matrix
6. Conclusion/Synopsis – this will serve as an introduction and justification of advertising
record
LAW 1 – LEADERSHIP
It is always to be first to market rather than waiting to get to market with a better product.
Example – Neil Armstrong was the first to walk on the moon. Who was the second?” No one
remembers.
LAW 2 – CATEGORY
If it is impossible to be first in a category, invent a new category in which you can be first to
market in. Example – swim wear for pregnant women, bags for teachers
LAW 4 – PERCEPTION
Marketing is never a battle of products. It is always a battle of perception. Example – the
Kojic whitening products for people who believe that it is effective compared to other better brands.
LAW 5 – FOCUS
The key to success in marketing is to find an effective way to come to own a word in the
mind of the prospect. Example – Biogesic’s “Ingat”
LAW 6 – EXCLUSIVITY
No two companies can own the same word in the mind of the prospect or customer.
Example –
Apple and Samsung
LAW 7 – LADDER
The marketing strategy you should use will be dependent on which rung of the ladder you
occupy. Example – a brand claiming that they are only number 2 will help them gain more profit.
LAW 8 – DUALITY
Over the longer term, every marketing battle eventually becomes a two horse race.
Example – McDonald’s and Jollibee.
LAW 10 – DIVISION
Over a period of time, most categories will divide into numerous segments, each acting like a
category. Example – Belo started as a surgical company but now they have different products to sell
such as lotion, soap, powder, etc
LAW 11 – PERSPECTIVE
The results of marketing programs only become apparent over an extended period of time.
Example – having a sale, it profits the business for short term but also teaches the customers to not
buy at your shop on regular pricing so they wait until you have a sale.
LAW 14 – ATTRIBUTES
Do not emulate the leader. Play off against the leader and offer something similar but
opposite to differentiate. Example – Colgate and Sensodyne, both toothpaste but the other one
offers a different cleaning and whitening effect.
LAW 15 – CANDOR
Anytime you admit a negative in your marketing, the prospect will treat that admission
positively. Example – Listerine tastes bad but something so strong has to kill a lot of germs.
LAW 16 – SINGULARITY
In every marketing situation, there is always one move that will open the floodgates of
substantial success. Example – IPhones and Samsung phones, IPhone is a lot faster and reliable than
Samsung
LAW 17 – UNPREDICTABILITY
Unless you are writing your competitor’s plan, the future will always be unpredictable.
Example – clothing lines such as H&M and Forever 21 that continuously innovating in order to follow
the trends.
LAW 18 – SUCCESS
Business success often leads to arrogance, which in turn leads to failure. Example – in 1985,
IBM assumed they owned the PC market.
LAW 19 – FAILURE
Failure in marketing should be both expected and accepted. Example – risking for example
when McDonald’s released their new Buffalo chicken, bd feedbacks from customers were given.
LAW 20 – HYPE
The real situation with any marketing program is quite often the exact opposite of how it is
reported.
LAW 21 – ACCELERATION
Successful marketing programs are built on trends, not on temporary fads. Example –
clothing lines
LAW 22 – RESOURCES
Without adequate funding, a good idea will never get off the ground.
1. Negative Demand – might be defined as a state in which all or most of the important
segments of the potential market dislike the product and in fact might conceivably pay a
price to avoid it. The marketing task is to analyze the reasons for this dislike and to find out
whether a marketing program consisting of product redesign, lower prices and more positive
promotion could change the customer’s belief and attitude. Example – vegetarians feel
negative demand for meat of all kinds. Some Jews and Arabs feel negative demand for pork.
2. No Demand – is a state in which all or important segments of a potential market are
uninterested or indifferent to a particular object. Three different categories of objects are
characterized by no demand. First, there are those familiar objects that are perceived as
having no value, example – urban junk such as disposable Coke bottles, old barbed wire.
Second, there are those familiar new objects that are recognized to have value but not in the
particular market. Example – would include boats in areas not near in any water. There are
those new unfamiliar objects that face a situation of no demand because the relevant
market has no knowledge of the object. The marketing task is to find ways to connect the
benefits of the product with the personal natural needs and interests.
3. Latent Demand – a state of latent demand exists when a substantial number of people share
a strong need for something which does not exist in the form of an actual product. This
represents an opportunity for the marketing innovator to develop the product that people
have been wanting. The marketer must be an expert in identifying the prospects for the
product who have the strongest latent demand and in coordinating all the marketing
functions so as to develop the market in an orderly way. A great number of cigarette
smokers would like a good tasting cigarette that does not yield nicotine and tars damaging to
health so Vape was invented.
4. Faltering Demand – every organization, sooner or later, faces demand for one or more of its
products. The marketer must analyze the causes of market decline and determine whether
demand can be restimulated by finding new target markets, changing the product features
or developing more effective communication. The marketing task is to reverse the declining
demand through creative marketing of the product. Many popular entertainers and political
candidates lose their following and badly need remarketing.
5. Irregular Demand – many organizations face demand that varies on a seasonal, daily or even
hourly basis, causing problems of idle capacity or overwork capacity. Synchromarketing – is
needed to find ways to alter the time pattern of demand through flexible pricing, promotion
and other incentives. Holiday resorts are visited more frequently during summer.
6. Full Demand – is a state in which the current level and timing of demand is equal to the
desired level and timing. The marketing task is to maintain the current level of demand in
the face of changing customer/consumer satisfaction to make sure it is doing a good job.
When a new product is doing well, new suppliers quickly move in and attempt to attract
away some of the demand.
7. Overfull Demand – a state in which demand exceeds the level at which the marketer feels
able or motivated to supply. It is essentially the reverse of faltering demand. The marketing
task called demarketing, requires finding ways to reduce the demand temporarily or
permanently. Demarketing does not aim to destroy demand but only reduce its level
temporarily or permanently. Electric power companies are demarketing certain uses of
electricity because of the growing shortage of power generation facilities.
8. Unwholesome Demand – it is a state in which any positive level of demand is felt to be
excessive because of undesirable qualities associated with the product. Counter marketing
is an attempt to designate the product as intrinsically unwholesome. Anti-smoking groups
managed to put enough pressure.