How To Advertise: An Analysis of Contemporary Advertising (part 21)

The Advertising Plan (part A)

by

Charles Lamson

The advertising plan is a natural outgrowth of the marketing plan and is prepared in much the same way. In IMC (integrated marketing communications) planning, though, the advertising plan is an integrated part of the overall procedure.

Reviewing the Marketing Plan

The advertising manager first reviews the marketing plan to understand where the company is going, how it intends to get there, and what role advertising plays in the marketing mix (the "set of marketing tools that the firm uses to pursue its marketing objectives in the target [market]." -Wikipedia). The first section of the advertising plan should organize information from the marketing plan's situation analysis into four categories: internal strengths and weaknesses and external opportunities  and threats (SWOT). The SWOT analysis briefly restates the company's current situation, reviews the target market segments, itemizes the long- and short-term marketing objectives, and cites decisions regarding market positioning and the marketing mix.

Setting Advertising Objectives

The advertising manager then determines what tasks advertising must take on. What strengths and opportunities can be leveraged? What weaknesses and threats need to be addressed? Unfortunately, some corporate executives (and advertising managers) state vague goals for advertising, like "increasing sales and maximizing profits by creating a favorable impression of the product in the marketplace." When this happens, no one understands what the advertising is intended to do, how much it will cost, or how to measure the results. Advertising objectives should be specific, realistic, and measurable.

Understanding What Advertising Can Do

Most advertising programs can encourage prospects to take some action. However, it is usually unrealistic to assign advertising the responsibility for achieving sales. Sales goals are marketing objectives, not advertising objectives. Before an advertiser can persuade customers to buy, it must inform, persuade, or remind its intended audience about the company, product, service, or issue. A simple adage to remember when setting objectives is "Marketing sells, advertising tells." In other words, advertising objectives should be related to communication effects.

The Advertising Pyramid: A Guide to Setting Objectives

Suppose you are advertising a new brand in a new product category, but you are not sure what kind of results to expect. The pyramid in Exhibit 1 shows some of the tasks advertising can perform. Obviously, before your product is introduced, prospective customers are completely unaware of it. Your first communication objective therefore is to create awareness---to acquaint people with the company, product, service, and brand.

Exhibit 1

The advertising pyramid depicts the progression of advertising effects on mass audiences---especially for new products. The initial image promotes awareness of the product to a large audience (the base of the pyramid). But only a percentage of this large group will comprehend the products benefits. Of that group, even fewer will go on to feel conviction about, then desire for the product. In the end, compared with the number of people aware of the product, the number of people who take action is usually quite small.

The next task might be to develop comprehension---to communicate enough information about the product so that some percentage of the aware group recognizes the product's purpose, image, or position, and perhaps some of its features.

Next, you need to communicate enough information to develop conviction---to persuade a certain number of people to actually believe in the product's value. Once convinced, some people may be moved to desire the product. Finally, some percentage of those who desire the product will take action. They may request additional information, send in a coupon, visit a store, or actually buy the product.

The pyramid works in three dimensions: time, dollars, and people. Advertising results may take time,, especially if the product is expensive or not purchased regularly. Over time, as a company continues advertising, the number of people who become aware of the product increases. As more people comprehend the product, believe in it, and desire it, more take the final action of buying it.

Let's apply these principles to a hypothetical case. Suppose you are in charge of advertising for the new "Lightening Bug," a hybrid car built by Volkswagon that runs on both gasoline and electricity. Your initial advertising objectives for this fictional car might read as follows:

1. Within two years, communicate the existence of the Lightening Bug to half of the more than 500 people who annually buy foreign economy cars.
2. Inform two-thirds of this "aware" group that the Lightening Bug is a superior economy car with many design, safety, and environmentally friendly features: that it is a brand new nameplate backed with unmatched service, quality, and value; and that it is sold only through dedicated Volkswagon dealers.
3. Convince two-thirds of the "informed" group that the Lightening Bug is a high-quality car, reliable, economical, and fun to drive.
4. Stimulate desire within two-thirds of the "convinced" group for a test drive.
5. Motivate two-thirds of the "desire" group to visit a retailer for a test drive.

These advertising objectives are specific as to time and degree and are quantified like marketing objectives. Theoretically, at the end of the first year, a consumer attitude study could determine how many people are aware of the Lightening Bug, how many people understand the car's primary features, and so on, thus measuring the programs effectiveness.

Volkswagon's advertising may accomplish the objectives of creating awareness, comprehension, conviction, desire, and action. But once the customer is in the store, it is the retailer's responsibility to close the sale with effective selling and service.

With the advent of integrated marketing communications, we can look at the pyramid in another way. By using a variety of marketing communication tools and a wide menu of traditional and nontraditional media, we can accomplish the communication objectives suggested by the pyramid in a more efficient manner. For instance, for creating sheer awareness for the new Lightening Bug as well as brand image for the car and the company, an intensive program of public relations activities supported by mass media advertising would be the communication tools of choice. Comprehension, interest, and credibility can be augmented by media advertising, press publicity, direct mail brochures and special events such as a sports car show. Desire can be enhanced by a combination of the buzz created by good reviews in car enthusiast magazines, plus media advertising, beautiful brochure photography, and the excitement generated by a sales promotion (such as a sweepstakes). Finally, action can be stimulated by direct mail solicitation, sales promotion, and the attentive service of a retail salesperson in an attractive new car showroom. Following the sale, media advertising should continue to reinforce the purchase decision. But at the same time, outbound telemarketing calls from the retailer can be used to thank the customer, solicit feedback on that customer's experience, and offer any needed assistance. This acknowledges that the sale was just the beginning of a valuable relationship.

The Old Model versus the New

The advertising pyramid represents the learn-feel-do model of advertising effects. That is, it assumes that people rationally consider a prospective purchase, and once they feel good about it, they act. The theory is that advertising affects attitude, and attitude leads to behavior. That may be true for certain expensive, high-involvement products that require a lot of consideration. But other purchases may follow a different pattern. For example, impulse purchases at the checkout counter may involve a do-feel-learn model, in which behavior leads to attitude. Other purchases may follow some other pattern. Thus, there are many marketing considerations when advertising objectives are being set, and they must be thought out carefully. 

The advertising pyramid also reflects the traditional mass marketing monologue. The advertiser talks and the customer listens. That was appropriate before the advent of computers and databases, and it may still be appropriate in those categories where the marketer has no choice.

But today, as the IMC model shows, many marketers have databases of information on their customers, about where they live, what they buy, and what they like and dislike. When marketers can have a dialogue and establish a relationship, the model is no longer a pyramid but a circle. Consumers and business customers can send messages back to the marketer in the form of coupons, phone calls, surveys, and database information on purchases. With interactive media, the responses are in real time. This feedback can help the marketer's product, service, and messages evolve. And reinforcement advertising, designed to build brand loyalty, will remind people of their successful experience with the product and suggest reuse.

By starting with the customer and then integrating all aspects of their marketing communications---package and store design, personal selling, advertising, public relations activities, special events, and sales promotions---companies hope to accelerate the communications process, make it more efficient, and achieve lasting loyalty from good prospects.

*SOURCE: CONTEMPORARY ADVERTISING 11TH ED., 2008, PGS. 252-255*

END