Lecture3广告管理概览

expansion advertising)
Influencing
◦ Getting prospective customers to try advertised products and services: Creating primary demand Building secondary demand
◦ Consistent investment spending is the key factor underlying successful advertising
◦ Stopping advertising can cause a brand to lose market momentum, reducing its equity and market share
7–2
Chapter Objectives (cont’d)
After reading this chapter you should be able to:
5. Understand the functions agencies perform and how they are compensated.
◦ Personal care products based on image have high ratios
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Advertising-to-Sales Ratios
◦ Advertising as a percentage of sales ranges from a low of 1.3 % to a high of 29.9 %
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Table 7.1
Top 20 Spenders in U.S Advertising, 2006 ($ million)
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Advertising Effects Are Uncertain
◦ Advertising is not just a current expense but rather is an investment
2. Appreciate that advertising can be extraordinarily effective but that there is risk and uncertainty when investing in this practice.
3. Recognize the various functions that advertising performs.
4. Explore the advertising management process from the perspective of clients and their agencies.
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Influencing
Informing
Reminding and Increasing Salience
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Table 7.2a
Advertising-to-Sales Ratios for Select Product Categories
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Table 7.2b
◦ Increasing customers’ interest in mature brands and the likelihood of choosing brands that might have otherwise not been chosen.
◦ Influence brand switching by reminding consumers that the brand is available and that it possesses favorable attributes.
◦ Advertising should not be managed as a discretionary variable cost
◦ Advertising should not be the first reduction when financial pressures call for cost-cutting measures.
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Reminding and Increasing Salience
◦ Enriching the memory trace for a brand so that the brand comes to mind in relevant choice situations
Adding Value
Assisting Other Company Efforts
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Informing
◦ Making consumers aware of new brands. ◦ Increasing TOMA (Top of Mind Awareness) ◦ Teaching new uses for existing brands (called usage
Advertising Defined
◦ A paid, mediated form of communication from an identifiable source, designed to persuade the receiver to take some action, now or in the future
Advertising-to-Sales Ratios for Select Product Categories
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Table 7.2c Advertising-to-Sales Ratios for Select Product Categories
◦ Ratios typically range from 2% to 10% with an average of 3.1% across most B2C and B2B categories
◦ Competition from larger firms forces smaller companies to have higher ratios
5
Figure 7.1
Example of the Use of Humor in B2B Advertising
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United States: $294 billion
◦ To deliver coupons and sweepstakes
fails. It’s news
when an
ad campaign
launch succeeds.”
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Advertising & Sales Promotion
Lecture 3
Advertising Management Overview And Campaign Planning
Shimp chapter 7 Yeshin chapters 4 to 8
7–1
Chapter Objectives
Innovating
Improving Quality