Introduction to Advertising

10/9/13
Advertising & Marketing Research IMC
Marketing Research
(Your Mom Hates Dead Space 2 Behind-the-scenes)
3 Purposes of Marketing Research:
To recruit new customers
To retain current customers
To regain lost customers
IMC Research
IMC Strategy Research
o involves advertising research...
Creative Concept Research
Media Testing
(IMC) Advertising & Product Research
Synthetic gathering & analysis of information to help develop or evaluate advertising
strategies, individual ads, & whole campaigns
Prior to developing a campaign its important that advertisers know:
o How people perceive its products?
o How people view the competition?
o Brand Credibility
o What types of ads have the best appeal?
Categories of IMC research
Advertising strategy research
o Product concept: how consumers perceive their brands
o Target audience selection: dominance concept
o Media Selection: understand your consumers media habits and the differing effect of
media vehicles.
Creative concept research
o Researching which advertisement concepts to use
Media Testing
Types of Media Testing
o New Product Media Plan
o Alternative Spending Levels
o Alternative Schedules
o Alternative Media Mixes
o Alternative Commercial Lengths and/or ad sizes
Quantitative vs. Qualitative Research
Quantitative research- to gain reliable, hard statistics about specific market conditions or
situations
o Observation, Experiment, & Survey
Qualitative research- in-depth, open-ended responses rather than yes or no answers
Qualitative Research Methods
Projective Techniques
o Designed to understand people's underlying or subconscious feeling, attitudes, interests,
opinions, needs, and motives
Intensive Techniques
o In-depth interviews and focus groups
Quantitative Research Methods
Observation- monitors people's reactions
Experiment- measures cause-&-effect relationships
Survey- provides information on attitudes, opinions, or motivations by questioning current or
prospective customers
Message Testing (Pre & Post)
Pre & Post-test considerations
Pre-testing of ads
o Essentially testing the ads before they run nationally
o Test markets (products, markets, ads, etc..)
o Finding out about your consumers habits/motivations
Post-testing of ads
o Evaluating the effectiveness of an advertisement or campaign after it runs
o Provides guidelines for future advertising
Research Concerns
Validity= results free of bias
Reliability= are the results consistent
Sampling methods
Concerns Cont..
Leading Questions- You are not expected to reply truthfully (Did you smoke weed before
class?)
Social Response bias- You reply so that you don't seem out of place
Reactivity effects (ppl know what you're testing, they know answer before u even ask)
o Experimental studies
Demand Characteristics
o Participants respond in a manner they think the researcher wants.. or opposite
Ethical considerations
Conclusions
Research is often conducted to serve a purpose (marketing- customers, advertising- creative
appeals, media- media selection).
Two different types of methodological analysis approaches with different methodologies
You need to fit the right questions with the right type of analysis
However, both types can be applied to the same phenomena of study
No study is perfect and free from error
Advertising Research Review
Product Placement:
DeLorme & Reid (1999)
o How are brand props (placement) interpreted by moviegoers?
Sample
o Young frequent moviegoers, young infrequent moviegoers, older frequent moviegoers, &
older infrequent moviegoers.
Method
o 30 in-depth interviews
o 8 different focus groups (n=69)
Questions
Experiences with brand-pops
Experiences talking about brand-pops
Brand-prop influences
RESULTS
o Role of brand-placement
Appreciating realism= congruent interpretations of real life, enhance "connectiveness"
Noticing the familiar= congruent and associated with viewers' past experiences, enhance
knowing
Relating to characters= implicit endorsement through visual or verbal associations.
o Consumption Specific Relevance
Tools for purchasing decisions= viewers associate with & consider in their own purchasing
decisions .
Tools for identity & aspirations = viewers associate with their own self impressions as
consumers
Change & discomfort= to older participants, brand-props represented threats or interruptions
Belonging & Security = to younger participants, brands in movies fostered shared experiences
between moviegoers & the characters
Advergames:
Calin(2010)
Method
o Secondary Data Analysis
Sample:
o Published Advergame Studies
Purpose:
o Evaluate Characteristics
o Potential
o Limitations
RESULTS
o Low-cost marketing in comparison
o A captured audience
o Customer Retention
o Viral Marketing Aspect
o Characteristics of effective advergames
Accessibility: facility to identify firm/product site with games...
Understanding: guidelines on how to play
Competitive Level: players, display of scores, multiple levels of difficulty
Relevancy of firm or brand with game
Capacity to induce FLOW: skill & challenge balance
Viral Marketing aspect
Advertising Copy
Elder & Krishna(2010)
o Multiple Sense Ads (Just focusing upon taste or smell)
o Single Sense Ads ( just focusing upon taste or smell)
Outcomes
o Perceived Taste
o Positive Thoughts
3 Studies
o Chewing Gum (slogans)
"Long Lasting Flavor" (Single-sense)
"Stimulus your Senses" (multiple-sense)
o Potato Chips (Advertising Copy)
Ad#1 (taste, smell, texture)
Ad#2 (just taste)
o Popcorn (cognitive load manipulation)
Ad#1 (taste, smell, sight, texture, sound)
Ad#2 (just taste)
RESULTS
o Chewing Gum
Stimulate Your Senses" lead to higher taste perceptions and more positive sensory thoughts
o Potato Chips
Ad#1 (multi-sense) lead to higher taste perceptions and more positive sensory thoughts
o Popcorns
In high cognitive load conditions the single-sensory ad(ad#2) did not do any worse or better
than the multiple sensory ad (ad#1)
Conclusion
o These studies have managerial implications for brand placement, advertising copy
(creative concepts), and advertising repetition (advertising scheduling).
o Studies can be conducted in various manners from qualitative and quantitative
methodologies.
o Although a lot of research focuses upon recall and attitudes, some can study varied
outcomes(taste perceptions).
Marketing & Advertising Planning
Example: New Belgium Brewing Company- NBB
Setting Marketing Strategy Objectives
Sales-target objectives
o goals related to increasing or maintaining sales volume
Communication objectives
o goals related to comprehension, awareness, knowledge, or attitude change
Marketing Strategy
Composed of:
o Product Strategy
o Price Strategy
o Distribution & Manufacturing
o Promotion(advertising)
(Look at this process through NBB)
New Belgium Brewing Company
History
Jeff Lebesch (Owner)
o New Belgium Brewing Company began with a bicycling trip through Belgium
o NBB opened for business in 1991 as a tiny basement operation
o To date, NBB includes an automated brew house, two quality assurance labs, and
numerous technological innovations for they have become nationally recognized as a "paradigm
for environmental efficiencies"
NBB: Core Beliefs & Purpose
Mission Statement:
o "To operate a profitable brewery which makes our love and talent manifest"
Environmental Stewardship: minimizing resource consumption, maximizing efficiency and
recycling.
Transcending Customers expectations
Balancing the myriad needs of the company, staff, and their families
NBB: Marketing Strategy
Market Segments: New Belgium segments the beer market through values, attitudes, and
lifestyles
Industry Segment: New Belgium competes in the craft- or microbrew segment of the beer
industry
Focus(Product Concept): Environmental Consciousness/High Quality Beer
Price Strategy
Price-for-quality Relationship
o High quality, good value, and high customer satisfaction
o Costs per six and twelve packs are significantly more expensive than mass produced
beers
o To counter this: they focus on high quality and promote connoisseurship
Product Strategy- Branding
Packaging
o New Belgium uses "good ol' days" nostalgia in their labels
NBB: Distribution & Manufacturing
Marketing Strategy involves linking the quality of its products as well as their name and look,
with company's philosophy toward affecting the planet
o Wind Turbine powered brewery
o Reuse of hot water made in the beer production process
o Recycling and Reuse Strategies
Advertising & Promotion: NBB
Consumer/Customer initiatives
o TV Advertisement (Flat Tire beer commercial)
o Magazine Advertising
o Word-of-mouth campaigning
o Sponsorships (NBB sponsored events, product donations, grants)
Social Concerns
NBB strives to improve communities and enhance people's lives through corporate giving,
event sponsorship, and philanthropic involvement.
o Sponsorship of non-profits
o Donations to Various cultural, social, and environmental causes
o Grant funding
Advertising Budgeting
Allocating Funds for Advertising
Methods
o Percentage of sales
o Share of Market
o Strategic (objective/task method)
o Empirical Research
10/14/2013
Focus on results.
Product placement
Delorme & Reid (1999)
o How are brand props (placement) interpreted by moviegoers?
Sample
o Young frequent moviegoers, young infrequent moviegoers, older frequent moviegoers,
& older infrequent moviegoers
Method
o 30 in-depth interviews
o 8 different focus groups (n-69)
These are Qualitative methods
Questions
o Opened-ended
experiences with brand-pros
Experiences talking about brand-props
Brand-prop influences
Brand-prop experiences besides movies
RESULTS
o Role of brand-placement
Appreciating realism= congruent interpretations of real life, enhance
connectiveness
Noticing the familiar= congruent and associated with viewers past
experiences, enhance knowing
Relating to characters= implicit endorsement through visual or verbal
associations
RESULTS Cont..
o Consumption specific Relevance
Tools for purchasing decisions = viewers associate with & consider in their own
purchasing decisions
Tools for identity & aspirations = viewers associate with their own self-
impressions as consumers
Change & discomfort = to older participants, brand-props represented threats
or interruptions
Belonging & security = to younger participants, brands in movies fostered
shared experiences between moviegoers and the characters
ADVERGAMES
Calin (2010)
o Method
Secondary Data Analysis
qualitative
o Sample
Published Advergames studies
o Purpose
Evaluate Characteristics
Potential
Limitations
o Results
Advantages
Low-cost marketing in comparison
A captures audience
Customer Retention
advergmaes can last several minutes instead of 30 sec on TV
Viral marketing aspect
Passing along
o Results cont..
Accessibility: facilitate to identify firm/product site with game..
understanding: guidelines on how to play
Competitive level: players, display of scores, multiple levels of difficulty
Relevancy of firm or brand with game
Capacity to induce FLOW: skill & challenge balance
FLOW: you have the skill to play the game, but its still difficult
(optimum level of balance of positive enjoyment)
Viral Marketing aspect
Elder & Kishna (2010)
Multiple Sense Ads (focusing upon taste, smell, touch, and sound)
Single sense ads (just focusing upon taste or smell
Outcomes
Perceived taste
Positive thoughts
3 studies
Chewing Gums (slogans)
o long lasting Flavor (single-sense)
o Stimulate your senses (multiple-sense)
Potato Chips (advertising copy)
o Ad #1 (taste, smell, texture)
o Ad #2 (just taste)
Popcorn (cognitive load manipulations)
o Made them thing of names of a group a children before giving them the ads.
Ad #1 (taste, smell, sight, texture, sound)
Ad #2 (just taste)
Results
Chewing gum
o stimulate your senses lead to higher taste perceptions and more positive sensory
thoughts
Potato chips
o Ad #1 (multi-sense) lead to higher taste perceptions and more positive sensory
thoughts
Popcorn
o In high cognitive load conditions the single-sensory ad (ad#2) did not do any worse or
better than the multiple sensory ad (ad#1)
Conclusions
These studies have managerial implications for brand placement, advertising copy (relative
concepts), and advertising repetition (advertising scheduling)
studies can be conducted in various manners from qualitative and quantitative methodologies
Although a lot of research focuses upon recall and attitudes, some can study varied
outcomes (taste perceptions)