USA Today’s “Ad Meter”

 The Super Bowl's annual adfest has become the biggest marketing
event of the year as advertisers tap in to the biggest TV event of the
year.
 USA TODAY created the Super Bowl Ad Meter in 1989 to gauge
consumers' opinions about TV's most expensive commercials.
 In 2007 USA TODAY assembled 207 adult volunteers in Phoenix and
McLean, Va., and electronically charted their second-by-second
reactions to ads during the Super Bowl.
 Fieldwork Phoenix and Shugoll Research chose the volunteers, who
used handheld meters to register how much they liked each ad.
 A computer continuously averaged the scores.
 Scores are the highest average for each ad.
Bud Light Super Bowl
Commercials
 The star of the No. 1 ad in 2007: A refrigerator
stocked with Bud Light with the ability to
disappear to keep unwelcome guests from
grabbing the brew. The fridge disappears via a
revolving wall that, unbeknownst to the fridge's
owner, spins it into the adjoining apartment.
 For the guys next door, it becomes the "magic
fridge" — an idol to be worshipped.
Power of Advertising:
Overwhelming?
 Body Image: Super-thin models, “heroin look”.
• Sources: Magazines, TV shows, movies, fashion shows.
 Cigarette use by teens: Marlboro Man, Joe Camel.
 Obesity: McDonald’s and other fast-food chains.
 Consumerism: Promotion of spending.
 Advantage to large companies with big advertising budgets
…?
Pepsi Campaign

(ca. 1990)
 FRIDAY, FEBRUARY 14, 1992

Pepsi-Cola Plans Big Effort To Exploit ‘Uh-huh’ Theme

As soon as Pepsi-Cola introduced Ray Charles as the spokes-singer for its Diet
Pepsi brand, growling, "You got the right one baby, uh-huh!" it seemed the decision had
indeed been the right one.
Consumers immediately took to the infectiously cheerful advertising created by
BBDO Worldwide, ranking the campaign among the most likable and memorable of
1991. The phrase entered the vernacular, appearing on a line of licensed clothing and on
cans and bottles of the soft drink.

There was just one uh-uh amid the uh-huhs: Diet Pepsi's market share ended the
year as flat as day-old cola, according to Beverage Digest, an authoritative industry
newsletter. It ranked fourth among America's leading soft drinks in 1991, with an 8
percent share, unchanged from 1990.

So, eager to translate Diet Pepsi's advertising success into sales, Pepsi executives are
planning one of the industry's most extensive, and expensive, marketing blitzes ever on
behalf of the 28-year-old brand. Beginning during CBS's telecast of the Grammy Awards on
Feb. 25, Diet Pepsi will embark on an elaborate series of events intended to convince
America that this April is "National Uh-huh Month."
 FRIDAY, FEBRUARY 14, 1992

Is ‘Heartbeat’ Campaign Selling Cars?

It is one of the best-known advertising campaigns in the country and yet the product it sells
has experienced a slide in market share since the effort began four years ago.
The television commercials of Lintas Campbell-Ewald's “Heartbeat of America” campaign
for Chevrolet are famed for slow-motion shots of parents frolicking with their children and the
insistent thump of the “Listen to the Heartbeat of America” song.
Although print ads are often less memorable than television, both “Heartbeat” executions
have scored consistently high in consumer recall. The “Heartbeat” campaign scored No. 3 in
Adweek's “America's Favorite Print Campaigns,” behind Ford and Pepsi-Cola.
Yet Chevrolet is losing ground. According to Ward's Communications Inc., a leading trade
publisher, Chevrolet's share of the American car market in 1986, when “Heartbeat” began, totaled
about 15 percent. By 1989, it declined to 13.6 percent.
Bob Garfield, a columnist for Advertising Age, took notice of the gap between the campaign's
visibility and Chevrolet's sales. “I may be the only person in the hemisphere to think so,” he wrote
recently, “but my view is that ‘Heartbeat’ is simply a glitzy, stylish, somewhat sexy, extremely
catchy, painstakingly cultivated archetype of puffery – because Chevrolet is not the heartbeat of
America.”
He added, “It's a declining entry level car brand, and it desperately needs to communicate
quality and value, not some fading vestige of ubiquity.”
Practitioner Theories
 Initially, assumption that people respond rationally to
advertising. “Main promise” of product basis for
advertising copy.
 Doubt about ability to change preferences by rational
argument, led to psychoanalytic approach: products
associated with unconscious desires. Copy has to
address these unconscious forces.
 Ogilvie: Brand image – set of associations to product
that places it in relation to a person’s life style.
 Lannon & Cooper: Cultural context – advertising is
effective if it reflects the shared meaning in a social
group or society.
Models of Advertising
Effectiveness: Price of Product
1600
1400
Advertising
1200
No advertising
Sales Volume

1000
800
600
400
200
0
Price
Models of Advertising
Effectiveness: Time
500
450
Campaign
400 ends
350
Campaign
Sales Volume

300 begins
250
200
150
100
50
0
Time
Models of Advertising
Effectiveness: Advertising
Weight (Number Ads,
Advertising
500 Budget)
450
400
350 Threshold
Sales Gain

300
250
200
150
100
50
0
Weight
Change in Sales as a Function of
Change in Advertising Budget
20
Budweiser Beer
15
10
% Change in Sales

5
0
-5 -100 -50 0 50 100 150 200

-10
-15
-20
% Change in Advertising Budget
 The BehaviorScan® System: Major Findings
(Lodish, et al., 1995)

 T.V. advertising alone is not enough.

There is no simple correspondence between increased T.V. advertising and increased
sales, regardless of whether the increased spending is compared to competition or not.

 Higher levels of trade display correspond with a reduction in the ability of T.V.
advertising to positively affect sales.

 There is no strong relation between measures of T.V. commercial recall and either
persuasion or sales impact for established brands.

 New brands or line extensions tend to be more response to T.V. advertising than
established products.
Higher boosts in prime time T.V. advertising are correlated with larger increases of
sales for new products, but not for established products.
Functions of Advertising
 Most important: Introduce / inform about a new
product (e.g., direct marketing). Helps companies
sell their products. Benefits economy.
 Gain market share: Much more difficult. Benefit
to economy less obvious.
Issues in Advertising
 Continued reliance on discredited approach.
• Source credibility – “doctors”, “overheard” endorsements.
• Source likeability – endorsement by well-known
personalities.
• Audience factors – market segmentation by demographics,
etc.
 Uncertainty regarding use of peripheral vs. central
approaches
• New products often introduced by central route.
• For many products (e.g., soft-drinks, difficult to come up
with strong arguments – but, example of 7-Up).
Peripheral Route?
Central Route?
Subliminal Persuasion?
Democrats See, and Smell, Rats
in G.O.P. Ad
Sept. 2000: Republican TV commercial
criticizing Al Gore’s prescription drug plan:
“bureaucRATS decide” …
Theories of Buying Behavior
 Some complex theories proposed, e.g., Howard &
Sheth (next slide).
Theory of Buyer Behavior
(Howard & Sheth, 1969)
Theories of Buying Behavior
 Simpler models – (central processing is assumed).
• Brand attitude determines brand choice.
 Multi-attribute (expectancy-value) model of brand attitude.
 Focus on brand image, image of corporation.
• Simpler choice model: Elimination by aspects (Tversky).
Theory of Planned Behavior
Applied to
Buying Product X
Behavioral Attitude
Beliefs About Toward
Buying Buying
Product X Product X

Normative Subjective Intention

Beliefs About Norm About to buy Buying
Buying Buying Product X
Product X Product X Product X

Control Perceived
Beliefs About Control Over
Buying Buying
Product X Product X
Mean Attitudes Toward Ad and
Toward Brand
(Madden & Ajzen, 1991)
4.5
No humor
4
Humor
3.5
Attitude

2.5

1.5
A-ad A-brand
Mean Attitudes Toward Ad and
Toward Brand
(Madden & Ajzen, 1991)
4

No added info
3.5 Added info
Attitude

2.5

1.5

A-ad A-brand
?!!?
Ford
Dodge Intrepid
Broadcast
Advertising
Setting objectives

 Objectives must flow from a clear positioning

statement
 What is the one selling point or niche that the
advertiser occupies?
 Price, convenience, quality, value, etc.
Setting objectives

 Objectives must address a communication

task
 Raise awareness
 Shape attitudes
 Enhance recall
 Motivate action
Setting objectives

 Advertising objectives DO NOT address

sales goals
 Sales goals are part of marketing objectives
Setting objectives

 What does the market know about the

advertiser?
 Where is the advertiser on the “awareness
curve” or “product life cycle?”
Setting objectives

Enhance Recall & Action

i n g
a nd
rst
d e
un
a te
e
Cr
Raise Awareness
er a wA

Time
Setting objectives

 Another scheme
 Awareness
 Knowledge
 Liking
 Preference
 Conviction
 Action
Setting objectives

 Objectives must be measurable

 What will be communicated
 To whom
 By when
 At what cost
Setting objectives

 What will be communicated:

 A Communications task
 Raise awareness
 Create understanding
 Enhance recall
 Motivate action
 Others
 Build brand preference, build brand loyalty, etc.
Setting objectives

 To whom:
 The audience defined demographically
 The audience defined geographically
 The size of the audience
Setting objectives

 By when:
 Determine the period of advertising
 Continuous is sustained over a period of time
 Short bursts or flights to exploit opportunities or to
promote special events - pulsing
Setting objectives

 At what cost:
 How much will it cost to achieve the objectives
that have been set?
 Requires obtaining rates from the media, and
calculating the cost of reaching the desired
demographic at the frequency necessary
Setting objectives
 Objectives allow the advertiser to measure
the effectiveness of advertising
 Without objectives, one does not know
whether advertising is accomplishing
anything
 From advertising objectives will flow strategy
 Strategy is a plan for achieving the objectives
Setting objectives

 From strategy, all creative efforts will flow

 Once objectives are set, and strategy is
determined, then creative work begins
 Creative begins with stating the copy platform
Creative Decisions

Identify
Identify
Product
ProductBenefits
Benefits

Develop
Developand
andEvaluate
Evaluate
Components
Components Advertising
AdvertisingAppeals
Appeals
of
of
Creative
Creative Execute
Execute
Decisions
Decisions the
theMessage
Message

Evaluate
Evaluate the
the
Campaign’s
Campaign’s Effectiveness
Effectiveness
Identify Product Benefits

 “Sell the Sizzle, not the Steak”

 Sell product’s benefits,
not its attributes
 A benefit should answer
“What’s in it for me?”
 Ask “So?” to determine
if it is a benefit
Advertising Appeal

Reason for a person

to buy a product.
 Common Advertising Appeals
Profit
Profit Product
Product saves,
saves, makes,
makes, or
or protects
protects money
money
Health
Health Appeals
Appeals to
to body-conscious
body-conscious or
or health
health seekers
seekers
Love
Love or
or romance
romance Used
Used in
in selling
selling cosmetics
cosmetics and
and perfumes
perfumes
Fear
Fear Social
Social embarrassment,
embarrassment, old
old age,
age, losing
losing health
health
Admiration
Admiration Reason
Reason for
for use
use of
of celebrity
celebrity spokespeople
spokespeople
Convenience
Convenience Used
Used for
for fast
fast foods
foods and
and microwave
microwave foods
foods
Fun
Fun and
and pleasure
pleasure Key
Key to
to advertising
advertising vacations,
vacations, beer,
beer, parks
parks
Vanity
Vanity and
and egotism
egotism Used
Used for
for expensive
expensive or
or conspicuous
conspicuous items
items
Environmental
Environmental Centers
Centers around
around environmental
environmental protection
protection
Consciousness
Consciousness
Unique Selling Proposition

Desirable, exclusive, and

believable advertising appeal
selected as the theme for a
campaign.

Jingles
Executing the Dockers

Message Goodyear

Scientific
Scientific Slice-of-Life
Slice-of-Life
Musical
Musical Lifestyle
Lifestyle

Demon-
Common
Common Spokes-
Demon- person/
stration
stration Executional
Executional Testimonial
Styles
Styles
Mood
Moodoror Fantasy
Fantasy
Image
Image Real/
Real/
Animated
Animated Humorous
Humorous
Product
Product
Symbols
Symbols
 Marketing Versus Communications Objectives

Marketing
Marketing Communications
Communications
Objectives
Objectives Objectives
Objectives

•• Generally
Generally stated
stated in in the
the •• Derived
Derived from
from the
the overall
overall
firm’s
firm’s marketing
marketing plan plan marketing
marketing plan
plan
•• Achieved
Achieved through
through the the •• More
More narrow
narrow than
than
overall
overall marketing
marketing plan plan marketing
marketing objectives
objectives
•• Quantifiable,
Quantifiable, such
such as as Vs. •• Based
Based onon particular
particular
sales,
sales, market
market share,
share, ROI ROI communications
communications taskstasks
•• To
To be
be accomplished
accomplished in in aa •• Designed
Designed to to deliver
deliver
given
given period
period ofof time
time appropriate
appropriate messages
messages
•• Must
Must bebe realistic
realistic andand •• Focused
Focused onon aa specific
specific
attainable
attainable to
to be
be effective
effective target
target audience
audience
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 Many Different Factors Affect Sales

$ ALE$
$ALE $

Product
Product
Promotion
Promotion Competition
Competition Quality
Quality

The
The
Distribution
Distribution Technology
Technology Price
Price Policy
Policy Economy
Economy

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sales As Advertising Objectives

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

+
Direct Response Ads Seek Sales

+
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Many Ads Seek Communications Objectives

+
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 Advertising and Movement Toward Action

Conative Purchase Point of purchase

Realm of motives.
Ads stimulate or
direct desires.
Retail store ads, Deals
“Last-chance” offers
Price appeals, Testimonials
Conviction

Preference Competitive ads

Affective Argumentative copy
Realm of emotions.
Ads change attitudes Liking “Image” copy
Status, glamour appeals
and feelings

Knowledge Announcements
Descriptive copy
Classified ads
Cognitive Slogans, jingles, skywriting
Realm of thoughts.
Ads provide Awareness Teaser campaigns
information and facts.

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Image Ads Can Have a Strong
Effect on Preference

+
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
 Pyramid of Communications Effects

5% Use

e
iv
at
n
Co
20% Trial
e

25% Preference
iv
ct
fe
Af

40% Liking
e

70% Knowledge
ti v
i
gn
Co

90% Awareness

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The DAGMAR Approach

Define
Advertising
Goals for
Measuring
Advertising
Results
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Specific Objective: Membership
Specific Target: Avid Golfers

*Click outside of the video screen to advance to the next slide

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 DAGMAR Difficulties

Legitimate
Legitimate Problems
Problems

Attitude
Attitude -- Behavior
Behavior Response
Response Hierarchy
Hierarchy
Relationship
Relationship Problems
Problems

Questionable
Questionable Objections
Objections

Sales
Sales Objectives
Objectives Costly
Costly and
and Inhibits
Inhibits Creativity
Creativity
Needed
Needed Impractical
Impractical

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advertising-Based View of Communications

Advertising Through Media

Acting on Consumers
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
The San Diego Zoo's Objective is to Attract
Visitors

*Click outside of the video screen to advance to the next slide

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Balancing Objectives and Budgets

What we’re What we need

willing and to achieve our
able to spend objectives
Dollars Goals

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

BASIC Principle of Marginal Analysis

Increase
Increase If
If the
the increased
increased cost
cost is
is less
less
Spending
Spending than
than the
the incremental
incremental
(marginal)
(marginal) return
return

If
If the
the increased
increased cost
cost is
is equal
equal
Hold
Hold to
to the
the incremental
incremental (marginal)
(marginal)
Spending
Spending return.
return.

If
If the
the increased
increased cost
cost is
is more
more
Decrease
Decrease than
than the
the incremental
incremental
Spending
Spending (marginal)
(marginal) return
return

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Assumptions for Marginal Analysis

Sales are the

principal
Sales are the result of advertising and
promotion, and nothing else
objective of
advertising
and promotion

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Advertising Sales/Response Functions

A. Concave- B. S-Shaped
Downward Response
Response Curve Function
Incremental Sales

Incremental Sales

Initial Spending

High Spending
Middle Level

Little Effect
Little Effect

High Effect
Range A Range B Range C

Advertising Expenditures Advertising Expenditures

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Top-Down Budgeting

Top
Top Management
Management Sets
Sets the
the Spending
Spending Limit
Limit

The
The Promotion
Promotion Budget
Budget Is
Is Set
Set to
to Stay
Stay Within
Within
the
the Spending
Spending Limit
Limit

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

 Top-Down Budgeting Methods

Competitive
Competitive
Parity
Parity

Arbitrary
Arbitrary Percentage
Percentage
Allocation
Allocation Top of
of Sales
Sales
Top
Management
Management

Return
Return on
on Affordable
Affordable
Investment
Investment Method
Method
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Bottom-Up Budgeting

Total
Total Budget
Budget Is
Is Approved
Approved by
by
Top
Top Management
Management

Cost
Cost of
of Activities
Activities are
are Budgeted
Budgeted

Activities
Activities to
to Achieve
Achieve Objectives
Objectives
Are
Are Planned
Planned

Promotional
Promotional Objectives
Objectives Are
Are Set
Set

© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin