MarketingManagement.pdf

282 CHAPTER15 DESIGNING ANDMANAGINGINTEGRATEDMARKETINGCOMMUNICATIONS

Setting the Advertising Objectives

Advertising objectives can be classified according to whether their aim is to inform,

persuade, or remind.

➤ Informative advertisingfigures heavily in the pioneering stage of a product category,

where the objective is to build primary demand. Thus, DVD makers initially had to

inform consumers of the benefits of this technology.

➤ Persuasive advertisingbecomes important in the competitive stage, where the

objective is to build selective demand for a particular brand. For example, Chivas

Regal attempts to persuade consumers that it delivers more taste and status than

other brands of Scotch whiskey. Some persuasive advertising is comparative

advertising,which explicitly compares two or more brands.^16

➤ Reminder advertisingis important with mature products. Coca-Cola ads are primarily

intended to remind people to purchase Coca-Cola. A related form of advertising is

reinforcement advertising,which seeks to assure current purchasers that they have

made the right choice. Automobile ads often depict satisfied customers enjoying

special features of their new car.

The advertising objective should emerge from a thorough analysis of the current mar-

keting situation. If the product class is mature, the company is the market leader, and

brand usage is low, the proper objective should be to stimulate more usage. If the prod-

uct class is new, the company is not the market leader, but the brand is superior to the

leader, then the proper objective is to convince the market of the brand’s superiority.

Deciding on the Advertising Budget

Management should consider these five factors when setting the advertising budget:^17

1. Product life cycle stage:New products typically receive large budgets to build awareness
   and to gain consumer trial. Established brands usually are supported with lower bud-
   gets as a ratio to sales.


2. Market share and consumer base:High-market-share brands usually require less advertising
   expenditure as a percentage of sales to maintain their share. To build share by increas-
   ing market size requires larger advertising expenditures. On a cost-per-impression basis,
   it is less expensive to reach consumers of a widely used brand than to reach consumers
   of low-share brands.


3. Competition and clutter:In a market with a large number of competitors and high
   advertising spending, a brand must advertise more heavily to be heard. Even simple
   clutter from advertisements that are not directly competitive to the brand creates a
   need for heavier advertising.


4. Advertising frequency:The number of repetitions needed to put across the brand’s mes-
   sage to consumers has an important impact on the advertising budget.


5. Product substitutability:Brands in a commodity class (cigarettes, beer, soft drinks)
   require heavy advertising to establish a differential image. Advertising is also impor-
   tant when a brand offers unique benefits or features.

Choosing the Advertising Message

Advertising campaigns vary in their creativity. In the late 1990s, Taco Bell launched a

clever television campaign featuring a chihuahua saying, “Yo Quiero Taco Bell,” mean-

ing “I want some Taco Bell.” The campaign struck a chord with the chain’s 18- to 35-

year-old customers and spawned an impressive array of chihuahua merchandise such