Transcript Advertising Strategy - Faculty Directory | Berkeley-Haas

Advertising Strategy
Session 7
Summer 2008
XMBA 206.1
Ganesh Iyer
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ODI assignment

Overall mean is 17.5 with a standard deviation of 1.29 across 69 submissions.

Overall, for a first deliverable for an incoming MBA class, the submissions were
very good.

The best submissions shared some key characteristics in that they tended to
- Concise and within the two page allotted length
- Address the value of the ODI lens clearly and in both qualitative benefits as
well as well showed the process to compute savings
- Comment on the value created by the lens to relate to how ODI should price
the lens to the farmer (ie is 8c the right mark and why or why not)
- Look at market segmentation across both geography and size of farm, and
consider the selling implications and company related implications in making the
recommendation.
- Identify some of the non-quantifiable sources of value in addition to the 3-4
key quantifiable ones for which data are provided in the case
Ganesh Iyer
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ODI assignment

The submissions that could have been better shared some key
characteristics as well in that they tended to:
- Do not attempt sufficient quantitative analysis of the
components of value.
- Leave out any indication of the manner in which the value
created by the ODI lens could be translated to the way in which
ODI should price the lens
- Go well beyond 2 pages without making the point much
stronger, or provide extraneous analysis beyond the scope of
the key question, often at the expense of not answering the case
questions.
Ganesh Iyer
3
Term projects

Thanks to all the groups who have sent me survey
questionnaires drafts
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Will make myself available in S497 on Friday…11.30 am to
12.30?

Tips on the use of survey instruments. Please see readings,
textbook.

Please note some of the suggestions in the h.o.
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Analysis Framework
Perceptual mapping
Company Analysis
Marketing Myopia
First mover advantages
Customer Analysis
Competitor
Analysis
Positioning
Segmentation
Marketing Strategy
Product
Pricing process
Pricing and innovation (ODI) Price
Advertising and promotions
BMW Z3
Marketing Orientation
Branding
Product Line Strategy
(Cambridge)
Promotion
Place
Market
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Advertising Planning Process
Target Market
Brand Positioning
Advertising Objectives
Budget Decisions
Creative Strategy
Media Strategy
Campaign Evaluation
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Advertising Objectives
Create awareness for new products
Inform consumers
» of product features and benefits
» price changes
» Important for building primary demand
Persuasion
» Build brand preference or change buyer perceptions
» especially important for building demand in competitive markets.
Reminder advertising: maintain top-of-mind awareness
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Hierarchy of effects
Communication Process
Awareness
Interest
Liking, Preference
Purchase, Action
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Creative Strategy

Develop the USP “unique selling proposition” or the “Creative
Hook”
Unique Selling Proposition
 Translates “brand positioning” into a compelling message.

Objective is “Memorability”
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Creative Strategy:
Emotional vs. Rational Appeal
Emotional = appeal to psychological, social or symbolic needs. “Pull at the
consumer’s heartstrings”
Rational = provide information about functional and utilitarian aspects of
the products.
Shift towards emotional execution strategy in the later part of the product
lifecycle
» Intense competition and proliferation of substitutable products
(Michelin)
» Critical to increase “Product involvement”
» http://www.youtube.com/watch?v=sIkQRXkpwQI
» http://www.youtube.com/watch?v=SdPLf3FoInE
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Taxonomy of Emotional Appeals
Fear appeal
 can be an effective motivator but has the danger of alienating
consumers
» Show the consumer how to avoid the problem.
» Provide concrete supporting information
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Taxonomy of Emotional Appeals
Humor
»
»
»
»
“Memorability” device.
Humor should not clutter the product benefits.
Execution detail: Show consumer how to avoid the problem.
Pre-test to check if consumer
– i) recalls product benefit
– ii) Attitude_product versus Attitude_ad = will the message be persuasive and will
the product be taken seriously.
» http://www.youtube.com/watch?v=kVCGBohc20k&mode=related&search=
» http://www.youtube.com/watch?v=f3mXaATLeRM
» http://www.youtube.com/watch?v=zV-yGp4l8B8
Fantasy
» seen often in cosmetics advertising
» http://www.youtube.com/watch?v=r1g5qcKcVCM
Ganesh Iyer
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Types of Rational / Informational Appeal
Technical Expertise or Scientific Evidence: (Crest…“Look ma no
cavities”)
Comparative: Product features vs. competition (Nike vs. Reebok)
» http://www.youtube.com/watch?v=xhiyDQNmEjY

Advantages
» High ability to get attention
» Helps in competitive positioning

Disadvantages
» Advertise the competition. Makes competition more salient.
» Can use only if there is clear objective superiority for the advertised
attribute.
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Media Decisions

Define the target market.
Quantitative Measures

Reach: the percentage of people in the target market who are exposed
to the ad campaign during the defined time duration
» 70% of the target market during the first three months of the
campaign

Frequency: A measure of how many times an average individual in the
target market who have been reached .
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Media Decisions
Advertising Exposure

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Gross Rating Points = 70(Reach) 4(Frequency) = 280 GRP’s
1GRP = 1 exposure to 1% of the audience.
Qualitative Measures
 Impact; is the qualitative aspect of the medium
» Newsweek vs. The National Enquirer
» Sports illustrated vs. Time for tennis racquets

Trade-off between reach and frequency

Pulsing vs. Continuity
» Pulsing most critical for new products. Why?
» Continuity needed when faced with intense competition
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Message
Good advertising creative strategy translates the brand’s
positioning statement into a persuasive and memorable
message. A great creative will provide lasting impact even if
advertising budgets are constrained.
“ How you say it is as critical as what you say”
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
http://www.youtube.com/watch?v=cQZYAd3g8-g
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