Advertising in the Marketing Mix
• Product
– Quality, package, appearance, etc.
• Price
– Deep discount to premium
• Place
– Distribution channels
• Promotion
Audience research
100%
All possible viewers or listeners
Audience research
100%
TVHH
Audience research Not viewing
HUT
50%
HUT level = 50
Audience research Not viewing
• Frequency
– Average number of exposures – How many times audience is exposed to message
Media strategy
• Best frequency
– Outdoor, newspapers, magazines
• “telephone philosophy of paying toll for long distance calls.
• First commercial broadcast • /commercials/1stcommercial.html
Broadcast Advertising History
– POP, personal selling, PR, Advertising
Advertising Classified
• By audience
– Consumer – Business to Business
• • • • Industrial Trade Professional Farm
• • • • • • Agencies The media The advertisers The support services and suppliers The regulators The consumers
Advertising History
• Functions of advertising:
Advertising Classified
• Print
– Newspaper – Magazine
• Outdoor
– Billboard – Transit
Advertising Classified
• Specialty
– Novelties – POP – Product placement – Etc. – Etc. – Etc.
Effects of advertising
• • • • On prices On competition On product image On demand
– “Creating” demands? – Bran, fiber, carbs, cosmetics, vitamins, etc. – Slow a declining market – “repositioning”
– Identify products and differentiate them – Communicate information about product – Induce consumers to try the product – Increase product usage – Build brand preference and loyalty
Advertising History
• Dates to 1600s
– British newspapers paid notices
Advertising History
• Ben Franklin is credited with introducing white space and illustrations
Media strategy
Media strategy
Media strategy
Media strategy
• Reach
– Unduplicated exposures – gross impressions – Number of different people exposed to the message
• Post WWI
– Radio grew – Lifestyles improved – Spending increased – Radio networks emerged – Advertising stressed the “Unique Selling Proposition”
Broadcast Advertising History
Broadcast Advertising History
• Depicting a lifestyle – not product information • El appeals • Remember the package – not the name • Focus on benefits to consumer
QHP Total QHP 3400 3400 2913 23300 5825 23300 50000
200 ÷ 50000 = .004
CPM
Number of spots Cost per spot Total cost QHP Total QHP 4 11 26500 8 15 3000 10 19 4700 Totals
Media strategy
• Buying patterns
– Weekly cycles – Monthly cycles – Annual cycles – Seasonal products
• Products/service with fixed maximum capacities
Media strategy
• How we know the size of the audience reached • Rating = percentage of all possible viewers or listeners • Share = percentage of people using media • Share is always a larger number
CPM
Number of spots Cost per spot Total cost 1 80 8 10 4 10 Totals
QHP Total QHP 3400 2913 5825
CPM
Number of spots Cost per spot Total cost 1 80 80 8 10 80 4 10 40 Totals $200
Advertising Classified
• By function
– Product -vs- non-product – Commercial -vs- non-commercial – Direct action -vs- non-direct action
The advertising industry
• Television explodes post WWII
– Radio programs shift to television – Radio adopts musical formats
• Advertising costs increase • Sponsorships give way to participations or “spots” • By the 1960s – advertising entered the “image era”
Broadcast Advertising
Advertising Defined
• • • • • • Non-personal Communication Usually paid for By an identified sponsor Persuasive in nature About products, ideas or services Through various media
Waste circulation
• Reaching people who are not the desired audience • Demographics = age, gender, income • Psychographics = “lifestyle”
Audience research
• N. W. Ayer – first full service agency
Broadcast Advertising History
• Out of the debate on how to pay for broadcasting came… • “Toll” broadcasting
– WEAF – AT&T station
Tuned to our spot
Audience research
The contemporary advertising industry
• Complicated by the proliferation of media • Audiences are splintered
– Narrowcasting
• Clutter and competition • High costs of media drive demand for research
Advertising Classified