Chapter 1b Sm

An advertising goal (or objective) is a specific communications task and achievement level tu he accomplished with eí specific audience in a specific period of time;3

"To increase omdtlg 30 mil lion home makers who Own automatic washers the ntim-btícwho identify brand X as a low-sudsing detergent and who are persuaded ihm it gets clothes cleaner from 10 percent to -H> percent in one year.

Advertising objectives can be classified according to Whether their aim is to inform, persuade, remind, or reinforce. 'Ihey aim at different stages in the hit>rarehy-úf-effccts discussed in Chapter 17.

d Injbrmativeadiwrtlstngaims to create brand awareness and knowledge of new products or new features of existing pro ducts. One of die ill-time most memorable ads starrer! Australian rugby player facko for Pnergiüer batteries. He Wis shown dressed as a battery, bursting into an early morning subway car, repeatedly shouting ont the brand name to the Co mm titers. Unfortunately, people remembered the name— but hated the ad! Brand awareness can not convifc at the expense of brand attitudes.

n. Pervnasiiw advertising aims to create liking, preference, conviction, and purchase of a product or ■service. Chivas Ilegal attempts to persuade consumers that It dellvefs more ias.tc and status ihan other brands of Scotch whiskey. Some persuasive advertising uses comparative advertising, which ¡ñafies an Explicit comparison of the attributes of two or more brands.'1 Tor years, VISA has rnn a successful ail campaign called "It's Everywhere Vou Want to He." that showcases desirable local inns and events that don't accept the American lix press card. Comparative advertising works best when it elicits cognitive and affective motivations simultaneously.5

■ Re in i Oder advertising niitis to stimulate repeal purchase of producís, and services. Expensive, four-color Coca-Q>!a ¡ids in magazines are Intended to remind people to purchase Cmch-CajIíi.

. ReiufrmTi'ifnt advertising nim* to convince current purchasers that they made the right choice. Automobile ads often depict satisfied customers enjoying special features of their new tar,

The advertising objective should emerge from a thorough analysis of the current marketing situation, if ihe product class is mature, the company is the market leader, and brand usage is low, the proper objective should be to stimulate more usage. If the product class is new, the company is not the market leader, but ihc brand is superior to the leader, then the proper objective is to convince the market of the brand's superiority.

Deciding on the Advertising Budget

I low does a company know if it is spending [he right ainpuní? Some critics charge that large consumer-packaged-gonils firms tend tu overspend on advertising as a form of insurance against not spending enough, and that industrial companies underestimate the power of company and product image building and tend to underspend.1'

Although advertising is treated asa curren! ex pense, pan of it is reallv an investment in building brand equity. When S5 million is spent on capital equipment, the equipment may be treated as a five-year depreciable asset and only one-fifth of the cost written tiffin tltc first year, When S5 million is spent on advertising to launch a flevv product, the entire cost must be writ i en off in the first year, This reduces the company's reported profit and therefore limits the number of new-product launches a company can undertake in anyone year.

In Chapter 17, tve described some general methods to estimate communications budgets. I lere arc- five specific factors to consider when setting the advertising budget;''

1, Stage in the prod act life cycle - New products typically receive large ail vert is i ng budgets to build awareness and to gain consumer trial. Established brands usually aire supported with lower advertising bud gets as a raiio m sales,M

2, Marvel share and consumer base -1 i i gh-market-share brands usually require less advertising expenditure as ;r percentage oí sales to mmifaHft itere. To baHd sham íwfttisfrrt; market size requires larger expend i tures. On a cost -per- impression basis, it is I inexpensive to reach consul iters (if a widely used brand than to reach consumers of low-sha re brands.

3, Competition and clutter -In a market with a large number of competitors and high advertising spending, a brand must advertise more heavilv to he heart!, liven simple clutter from advertisements not directly competitive to the brand creates a need For heavier advertising.

-1, Advertisingfrequeacy-y- I'he number of repetitions needed to put across the brand's message to consumers has an Important impact on the advertising budget. 5. Product si iifs tí tit fit hi Uty- tira litis in less-wcll-differentiaied or commodity-1 ike product classes (beer, soft drinks, banks, and airlines,) require heavy advertising to establish a differential Image. Advertising is also important when a brand can offer unique physical benefits or features,

In one study pf budget allocation, low and Mohr found that managers allocate less lo advertising as brands, move tn the more ma turn? phase of the product life cycle; when a brand is weII-differentiated from the competition; when managers are rewarded on short-term results; as retailers gain more power: and when managers have less experience with the company^

Continue reading here: Principles oi Personal Selling

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