Lecture3广告管理概览

Advertising&SalesPromotionLecture3AdvertisingManagementOverviewAndCampaignPlanning7–1Shimpchapter7Yeshinchapters4to81.Understandthemagnitudeofadvertisingandthepercentageofsalesrevenuecompaniesinvestinthismarcomtool.2.Appreciatethatadvertisingcanbeextraordinarilyeffectivebutthatthereisriskanduncertaintywheninvestinginthispractice.3.Recognizethevariousfunctionsthatadvertisingperforms.4.Exploretheadvertisingmanagementprocessfromtheperspectiveofclientsandtheiragencies.ChapterObjectivesAfterreadingthischapteryoushouldbeableto:©2010South-Western,apartofCengageLearning.Allrightsreserved.7–25.Understandthefunctionsagenciesperformandhowtheyarecompensated.6.Exploretheissueofwheninvestinginadvertisingiswarrantedandwhendisinvestingisjustified.7.Examineadvertisingelasticityasameansforunderstandingthecontentionthat“strongadvertisingisadepositinthebrandequitybank.”ChapterObjectives(cont’d)Afterreadingthischapteryoushouldbeableto:©2010South-Western,apartofCengageLearning.Allrightsreserved.7–3IsAdvertisingRocketScience?“Thetruthisthatadvertisingisharderthanrocketscience.It’snewswhenarocketlaunchfails.It’snewswhenanadcampaignlaunchsucceeds.”©2010South-Western,apartofCengageLearning.Allrightsreserved.7–4IntroductionAdvertisingDefined◦Apaid,mediatedformofcommunicationfromanidentifiablesource,designedtopersuadethereceivertotakesomeaction,noworinthefutureTypesofAdvertising◦BusinesstoConsumer(B2C)◦BusinesstoBusiness(B2B)©2010South-Western,apartofCengageLearning.Allrightsreserved.7–5©2010South-Western,apartofCengageLearning.Allrightsreserved.7–6Figure7.1ExampleoftheUseofHumorinB2BAdvertisingTheMagnitudeofAdvertisingthat’s$360,000,000,000!!!©2010South-Western,apartofCengageLearning.Allrightsreserved.7–7UnitedStates:$294billion($1,000perperson)Global:$360billionUKAdSpendPatternsUKadspendpatterns2008&2009:See://©2010South-Western,apartofCengageLearning.Allrightsreserved.7–8©2010South-Western,apartofCengageLearning.Allrightsreserved.7–9Table7.1Top20SpendersinU.SAdvertising,2006($million)TheMagnitudeofAdvertising(cont’d)Advertising-to-SalesRatios◦Advertisingasapercentageofsalesrangesfromalowof1.3%toahighof29.9%◦Ratiostypicallyrangefrom2%to10%withanaverageof3.1%acrossmostB2CandB2Bcategories◦Competitionfromlargerfirmsforcessmallercompaniestohavehigherratios◦Personalcareproductsbasedonimagehavehighratios©2010South-Western,apartofCengageLearning.Allrightsreserved.7–10©2010South-Western,apartofCengageLearning.Allrightsreserved.7–11Table7.2aAdvertising-to-SalesRatiosforSelectProductCategories©2010South-Western,apartofCengageLearning.Allrightsreserved.7–12Table7.2bAdvertising-to-SalesRatiosforSelectProductCategories©2010South-Western,apartofCengageLearning.Allrightsreserved.7–13Table7.2cAdvertising-to-SalesRatiosforSelectProductCategoriesTheMagnitudeofAdvertising(cont’d)AdvertisingEffectsAreUncertain◦Advertisingisnotjustacurrentexpensebutratherisaninvestment◦Advertisingshouldnotbemanagedasadiscretionaryvariablecost◦Advertisingshouldnotbethefirstreductionwhenfinancialpressurescallforcost-cuttingmeasures.◦Consistentinvestmentspendingisthekeyfactorunderlyingsuccessfuladvertising◦Stoppingadvertisingcancauseabrandtolosemarketmomentum,reducingitsequityandmarketshare©2010South-Western,apartofCengageLearning.Allrightsreserved.7–14AdvertisingFunctions©2010South-Western,apartofCengageLearning.Allrightsreserved.7–15InfluencingInformingAssistingOtherCompanyEffortsAddingValueRemindingandIncreasingSalienceAdvertisingFunctionsInforming◦Makingconsumersawareofnewbrands.◦IncreasingTOMA(TopofMindAwareness)◦Teachingnewusesforexistingbrands(calledusageexpansionadvertising)Influencing◦Gettingprospectivecustomerstotryadvertisedproductsandservices:CreatingprimarydemandBuildingsecondarydemand©2010South-Western,apartofCengageLearning.Allrightsreserved.7–16AdvertisingFunctions(cont’d)RemindingandIncreasingSalience◦Enrichingthememorytraceforabrandsothatthebrandcomestomindinrelevantchoicesituations◦Increasingcustomers’interestinmaturebrandsandthelikelihoodofchoosingbrandsthatmighthaveotherwisenotbeenchosen.◦Influencebrandswitchingbyremindingconsumersthatthebrandisavailableandthatitpossessesfavorableattributes.©2010South-Western,apartofCengageLearning.Allrightsreserved.7–17©2010South-Western,apartofCengageLearning.Allrightsreserved.7–18AdvertisingFunctions:AddingValueInnovatingImprovingQualityAlteringPerceptionsAddingValuebyAdvertisingFunctions(cont’d)UsingAdvertisingtoAssistOtherCompanyEfforts◦Todelivercouponsandsweepstakes◦Toassistsalesrepresentatives◦Topre-sellafirm’sproductsbyintroducingtheproductandlegitimizingsalespeople’sclaims◦Toaugmenttheeffectivenessofpricedeals©2010South-Western,apartofCengageLearning.Allrightsreserved.7–19©2010South-Western,apartofCengageLearning.Allrightsreserved.7–20Figure7.2TheAdvertisingManagementProcess©2010South-Western,apartofCengageLearning.Allrightsreserved.7–21StrategicAdvert