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Study Guide in PROF 106 – Advertising and Sales Promotion Module No. 10

STUDY GUIDE FOR MODULE NO. 10

Chapter 10: Management Of Effective Advertising

MODULE OVERVIEW

Job well done in finishing your module 9! In this module, you will learn to assess and evaluate the message
and content for the advertising content.

As you go along the module, try your best to read and answer the exercises and quizzes. You will be given
enough time to accomplish and submit your outputs. We will be having a virtual meeting for clarification and
virtual recitation to assess your learning once a week all throughout the semester (Reading habit and asking
for clarification is the key). Do not memorize every single word but understand and familiarize them instead.

*Contents are drawn from the references at the end of the module for further reading. PDF file of Ken Kaser 2013
Advertising and Sales Promotion. Cengage Learning Asia Pte Ltd. Philippines will be provided.

MODULE LEARNING OBJECTIVES

At the end of the module, you should be able to:

1. Identify the steps in creating an advertising plan.

2. Recognize the various types of analyses that should be performed when creating an advertising plan.
3. Identify how a media plan is developed.
4. Explain and develop market analysis and identifying the target market.
5. Understand and develop media strategies and implementation.
6. Describe different advertising creative formats.
7. Identify processes involved in the copywriting, art, and production stages of advertising.
8. Describe various methods used to evaluate advertising effectiveness.

LEARNING CONTENT 1: THE ADVERTISING PLAN; MEDIA PLANNING AND STRATEGY

The advertising plan describes the goals of an advertising campaign, methods to use to accomplish those
goals, and ways to evaluate whether those goals are achieved.

Steps for creating the advertising plan

1. Perform a Situational Analysis

A situational analysis describes the environment in which a business is operating. Before planning an
advertising campaign, a business needs to review its history and take a look at where things stand currently. It
needs to review its current products, target market, competitors, and financial condition. Industry and market
trends and the state of the economy should also be considered. An analysis of all of these factors will help
advertising planners determine the best type of message, timing of the message, and the most effective forms
of media for a successful advertising campaign.

SWOT analysis, which is an examination of a business’s strengths, weaknesses, opportunities, and threats,
is often conducted as part of a situational analysis. Strengths and weaknesses are internal factors. Strengths
could include the business’s marketing expertise or its new, innovative product. Weaknesses may be related
to the business’s bad reputation or its poor location. Opportunities and threats are external factors. An
opportunity could include a new international market. A threat may involve a new competitor or rising material
costs. The key issues that are identified in the SWOT analysis must be considered as the advertising plan is
developed.

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2. Set Advertising Objectives

Advertising plans are based on objectives that describe the desired results of the advertising campaign. In
many cases, a business has more than one advertising objective for a campaign. Common advertising
objectives include the following:
 Build consumer awareness of a product or brand
 Communicate product or brand benefits
 Generate interest in a product or brand
 Create, change, or reinforce consumers’ attitudes about a brand
 Persuade consumers to switch brands
 Attain brand loyalty
 Increase sales

The objective must be clearly stated and include criteria for success that can be measured.

3. Determine the Budget

After the advertising objectives have been identified, it is time to create the budget. There are several
methods businesses can use to determine the budget. Unfortunately, some businesses base the budget on
what they can afford. In other words, the advertising budget depends on how much money is left over after all
of the business’s expenses are covered. This is not the best method because it doesn’t always meet the
business’s advertising needs.

Other businesses use the historical method to determine how much to spend on advertising. They use the
amount spent on advertising in the previous year and make adjustments for inflation to arrive at the new
budget. Again, this may not be the best method. The historical method does not take into account other
factors, such as changes in the market or competition. Other methods used to determine the budget involve
allocating a percentage of sales, matching competitors’ budgets, and calculating the cost of the tasks
necessary to achieve the advertising objectives.

4. Develop the Creative Strategy

The creative strategy describes who the target market is, what the advertising message should be, and how
the message will be communicated. Before an ad can be created, the business must determine the purpose
of the advertising message, such as to inform, to compare, to persuade, to remind, or to defend. It must also
determine the best medium for communicating the message to the target audience.

5. Execute the Plan

Once the strategy is in place, the creative development process begins. The business often works with
copywriters and art directors to create the advertising concept. Ad copy, slogans, headlines, designs,
illustrations, photos, and scripts are important elements of the creative development process.

6. Evaluate the Plan

The advertising campaign must be evaluated to determine if the objectives outlined in the advertising plan
were met. The criteria stated in the objectives can be used to measure the effectiveness of the advertising
campaign.

Advertising Plan Analyses

Performing a situational analysis is the most time-consuming task in the advertising planning process.
Businesses must consider many internal and external factors that could affect the advertising plan.
Specifically, businesses need to take a close look at the industry, the market, competitors, and globalization.

 Industry Analysis. An industry analysis focuses on the developments and trends within an entire
industry. It helps a business understand its position relative to other businesses producing similar
products and services. It also identifies opportunities and threats that can be addressed in the
planning process.

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 Market Analysis. A market analysis is performed to learn more about current and potential users of a
product or service. It helps clearly define the target market and its needs.
 Competitor Analysis. After studying the industry and the market, it is important to take a look at the
competitors. A competitive analysis will help a business determine its competitive advantages or
disadvantages relative to other businesses. Businesses can use this information to develop strategies
to overcome the competition.
 Global Analysis. Many businesses are expanding into international markets. Even if a business’s
advertising strategy has been successful in its own country, the same advertising may not work well in
different countries or cultures. Target markets differ from country to country in terms of how they
perceive or interpret the advertising message. Businesses must decide when they can standardize
advertising campaigns throughout the world and when they must customize advertisements for
different cultures.

LEARNING ACTIVITY 1

Assessment Group Work: Read the case and answer the questions that follow. Present your answer in
class.

Guerilla Advertising

While walking along a city sidewalk, it’s not uncommon to encounter unique examples of guerrilla art (street
art or graffiti). Tags (the street artist’s name or message) left by individuals who climbed into precarious
positions, impromptu murals on the sides of buildings, and bizarre urban art are all a part of city life that is
admired by some while despised by others. In the past, advertisements were clearly recognized as being
different and separate from guerrilla art. They were easily recognizable as advertisements, and no one
expected them to be anything else. Although today’s urban environment still includes separate instances of
art and advertisements, some advertisements now look surprisingly like art.

Guerilla advertising involves the display of an unusual or unexpected advertisement in a common, everyday
place to create buzz about a product or service. For example, amongst the white stripes in a city street
crosswalk, one of the stripes is clearly brighter and whiter than the other stripes. That stripe contains a picture
of Mr. Clean®, the mascot for Mr. Clean household products. On another city street, a 3D rendering of a pool
of sharks along with the message, “Don’t step into danger,” was painted on the sidewalk as part of a public
service campaign to warn people about pedestrian accidents. A giant, 6-foot-tall cup of coffee is tipped over
on a sidewalk, revealing a coffee spill. The paper towel maker Bounty® placed a sign next to the coffee spill to
let passersby know that Bounty “makes small work of BIG spills.” On a subway, the overhead handrails have
been turned into barbells. An advertisement for a fitness company is placed above the barbells.

What’s the difference between guerrilla art and guerrilla advertising? You might think that the distinction
between the two would be obvious, but the lines are highly blurred. Art often is thought of as beautiful. But
what about advertisements that are truly beautiful? What about the street artists who are paid to use their art
to advertise a product? Is that still advertising, or can it also be art? The line is blurred even further when you
see the invasion of corporate logos and slogans in public places. At what point do advertisements become
graffiti? Although guerilla advertising may not be admired by all, it accomplishes two important goals. It gets
noticed and is memorable.

Questions:
1. Why do you think an increasing number of companies What do you are using guerilla advertising?
2. Have you seen guerilla advertising in your city or in another city? If so, describe it.
3. Although guerilla advertising gets noticed and is memorable, do you think it’s effective? Explain why or why
not.

LEARNING CONTENT 2: CREATION OF THE ADVERTISEMENT; CREATIVE STRATEGY –

PLANNING AND DEVELOPMENT

Select a Creative Format

The information outlined in the creative strategy portion of the advertising plan is used by the creative team to

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develop the advertisement. Numerous creative formats can be used to convey the advertising message to the
target customers. The advertiser must select the format that will be the most effective at meeting the
advertising objectives.

 Slice-of-Life Advertising. Slice-of-life advertising portrays a scene from everyday life.

Advertisements depict people in normal social settings, such as at the dinner table, at a park, or in
their car. The audience feels like it is watching or listening to a real event. The goal of slice-of-life
advertising is to socially embed the brand in the consumer’s everyday life. Subaru’s “Baby Driver”
commercial in which a father hands the car keys over to his 16-year-old daughter for the first time
depicts a life experience with which many parents can identify.
 Lifestyle Advertising. When using lifestyle advertising, advertisers have to understand the
psychographic characteristics—interests, attitudes, and opinions—of their target audience. This form
of advertising attempts to develop an image or identity for the brand. It not only promotes the product,
but it also promotes a way of living. Lifestyle advertising is depicted in Mountain Dew® commercials.
The brand presents itself as the choice for consumers who have a young attitude and active lifestyle.
 Testimonial Advertising. When a spokesperson endorses a product in an advertisement, it is known
as a testimonial. The endorser may be a well-known celebrity or athlete, a knowledgeable
professional such as a doctor, or a satisfied customer who uses the product. The idea behind
testimonial advertising is that prospective customers are more likely to trust a recommendation
coming from a third party than from the business itself. Microsoft used this strategy very effectively by
featuring its customers talking about Microsoft products in its “I’m a PC” advertising campaign.
Consumers often want to emulate popular celebrities and athletes, so using them as product
endorsers can favorably influence buying decisions.
 Humorous Advertising Humor is used in advertising as a way to make an emotional connection
with the audience. When humor is used appropriately, consumers develop a positive and memorable
association with the brand. People actually enjoy humorous ads and talk about them with others.
However, humorous ads have to do more than just entertain. There must be a direct link between the
humor and the brand; otherwise, people will remember the joke but not the brand. Advertising humor
works best for established and commonly purchased products. Unknown, risky, expensive, or
sensitive products are not normally suitable for advertising humor.
 Image Advertising. Image advertising promotes the general perception of a product or service rather
than its function or purpose. It is effective at building brand awareness, creating familiarity, and
contributing to the development of a mental picture of the brand or product in the minds of consumers.
 Scientific Advertising. Scientific advertising uses research or scientific evidence to promote a brand.
This type of advertising is effective when showing the results of pain relievers, hair growth products,
weight loss remedies, and skin creams.
 Product Demonstration Advertising. Product demonstration ads show how to use the product,
identify the benefits of using the product, and emphasize the value of owning the product. Product
demonstrations are based on the motto, “seeing is believing.” Truck manufacturers produce
commercials that show their trucks pulling heavy loads to demonstrate their towing capacity.
Infomercials frequently demonstrate the latest cooking and cleaning devices.
 Musical Advertising. Advertisers often choose to convey their message through the use of music.
Music functions as a bridge between the target audience and the advertisement. The audience
becomes more engaged when a familiar tune or catchy jingle is used. In addition, music can trigger
an instant emotional response from the target audience. Using music in advertising increases brand
awareness and recall of a product and its brand name.
 Comparison Advertising. Comparison advertising is used to promote the superiority of a brand by
comparing its features to those of a competitive brand.

Determine Copywriting, Art, and Production Strategies

Copywriting and Art Directing

Copywriting is the process of using words to express creative ideas and concepts. In advertising, copywriters
must effectively communicate the benefits and value of a brand in a new or unique way. The copywriting
process varies depending on the media used. However, one element of copywriting is common across all
media formats. Copywriters must create a slogan, or tagline, that will appear in all of a company’s
advertisements. A slogan is a short, memorable phrase that establishes an identity for a brand.

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 Print Advertising. Components of print advertising include the headline, subhead, and body copy. A
headline is used to capture the reader’s attention. It may provide information about the brand,
emphasize a brand claim, or arouse the reader’s curiosity. The subhead, which usually appears
below the headline, provides brand information not included in the headline. Body copy describes the
brand in more detail. Copywriters are challenged to use familiar words and phrases in an interesting
and exciting way.
 Radio Advertising. Because radio advertising is restricted to an audio-only format, copywriting can
be challenging. Copywriters may decide to use a music format, such as a jingle, or a dialogue format,
which often involves a conversation between two people.
 Television Advertising. Television provides a highly creative opportunity for copywriters. Television
commercials can evoke emotions and communicate brand values in ways that other advertising
formats cannot. Copywriting for television advertising must sell the brand while entertaining the
audience. Copywriters are challenged to coordinate the words with the visual images. The ad copy
should not be too wordy so it doesn’t interfere with the visual impact.
 Digital Advertising. Copywriting for digital/interactive media is very challenging. It is a cross between
print advertising and television advertising. Even though the message is in print format, it often has a
video or audio element. Copywriters have to appeal to vastly different audiences on company
websites, blogs, social media sites, and mobile devices.

The Production Process

After the creative concept developed by the copywriters and art directors has been finalized and approved,
the production stage will begin. For print advertising, this may involve selecting the proper font (style and size)
for the ad copy, hiring a photographer, selecting models for the ad, and finalizing the design and layout. The
layout is a drawing of the print advertisement showing where all the elements in the ad are positioned. For
radio advertising, the production process involves hiring an announcer or actors to read the ad. If music or a
jingle is used, musicians and singers are hired. The ad is then recorded at a sound studio. These steps may
not be necessary if the DJ is going to read the ad live on air. TV production is a much more complex process.
There are three stages—preproduction, production, and postproduction.

During the preproduction stage, the creative team and the producer create a production schedule, hire a
director, assemble a production crew, select a location, cast the actors, and hire music suppliers. In the
production stage, the commercial is filmed. A well-laid plan and highly trained technicians help ensure this
process goes smoothly, but unexpected events such as bad weather and intrusive noises can cause
disruptions. After the commercial is filmed, it enters the postproduction stage. Editors, sound engineers, voice-
over specialists, special effect artists, and others finish the commercial. It may go through several rounds of
editing and assembly before the master copy is completed. Copies of the master are made and distributed to
every TV station that is part of the media plan.

LEARNING ACTIVITY 2

Proceed to Learning Content 3

LEARNING CONTENT 3: ANALYSIS AND EVALUATION OF ADVERTISING MESSAGES

Evaluate Advertising Effectiveness

The final step in the advertising plan is to evaluate the effectiveness of the advertising campaign. There are
many reasons to measure the effectiveness of advertising. It determines whether the advertising message
made an impact on the target audience.

In most cases, measuring the results of an advertising campaign is directly related to the advertising
objectives. It is important to determine if the advertising objectives were met. To do this, businesses use direct
and indirect measures. A direct measure looks at the relationship between advertising and sales. Companies
compare advertising expenditures and sales to determine the impact of advertising campaigns. An indirect
measure looks at the target audience’s reaction to the advertising. There are several indirect measures that
advertisers can use as described below:

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 Recognition and Recall Measures

A recognition test measures a lower level of brand awareness by determining whether audience
members remember seeing the ad. Audiences are asked if they recognize the ad and if they can
name the company sponsoring the ad or the brand name of the product in the ad. Recall requires
more actual memory of an ad.
A recall test measures how much the audience remembers about the advertising message. If
audiences indicate they recognize the ad, they are then asked more specific questions relating to
brand attributes.

 Attitude Measures
An attitude study measures consumer attitudes before and after exposure to an ad. Target audience
members are recruited and surveyed about their attitude toward the advertised brand and
competitors’ brands before being shown the ad.

 Emotional Measures
One way to generate interest in a brand and attain brand loyalty is to make an emotional connection
with consumers. A resonance test measures the extent to which an advertising message resonates
or strikes a chord with the target audience. This type of test usually is given in a group setting. The ad
is shown to the group and then discussed.

 Behavioral Measures
The main purpose of an advertising campaign often is to influence consumers’ behavior. Advertisers
want consumers to take some kind of action, such as visit a website or make a purchase. There are
several behavioral-based measures that advertisers can use, many of which are related to sales.
Businesses can measure the effectiveness of their advertising campaign by comparing sales before,
during, and after the ad campaign. Since most advertising has a delayed effect, ad-driven sales may
not materialize immediately.

Other Strategies to Determine Advertising Effectiveness

 Track retail traffic. Count the number of people who enter the store after the advertising campaign has
been implemented. Compare this to the average store traffic before the campaign.
 Use a website stat counter to determine the number of visitors to the company’s website. Businesses
that advertise on the Web should compare pre- and post-advertising traffic on the website. The web
host has the capability to provide businesses with daily, weekly, or monthly reports.
 Ask people how they found out about the company. When a company receives a call or visit from a
new customer, it can ask how the customer learned about it. Did a sign in another customer’s yard, a
newspaper ad, its website, or Craigslist bring the customer to the business?
 Discontinue advertisements and measure any changes in business. Companies that have regularly
advertised in the newspaper every week for years should stop advertising for a few weeks to see if
there is any change in business. If there is no noticeable difference, the business may be able to cut
that form of advertising. This strategy can also be used for other forms of advertising.
 Use different telephone numbers. The performance for an advertisement can be tracked by using
different contact phone numbers or a toll-free number. When a company receives calls to a phone
number that is listed only in an advertisement, it is easier to track the results.
 Use direct-response advertisements. Give consumers the opportunity to respond directly through a
website or reply card. Postcards that offer a simple prepaid “drop in the mail for more information”
type of response can help a company gauge the effectiveness of a direct mail campaign.

LEARNING ACTIVITY 3

 Quiz covering the whole module.

 Prepare the initial Advertising Plan and present your proposal in class.

SUMMARY

The advertising plan describes the goals of an advertising campaign, methods to use to accomplish

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those goals, and ways to evaluate whether those goals are achieved.
Steps in creating an advertising plan are (1) perform a situational analysis, (2) set advertising
objectives, (3) determine the budget, (4) develop the creative strategy, (5) execute the plan, and (6)
evaluate the plan.
When performing a situational analysis, businesses must consider several factors, including the
industry, the market, competitors, and international markets.
Advertisers have many creative formats from which to choose when developing the advertising
campaign. Creative formats include sliceof-life, lifestyle, testimonial, humorous, image, scientific,
product demonstration, musical, and comparison advertising.
Copywriters, art directors, and producers work together closely to execute the advertising plan.
Copywriters create slogans for the brand. Art directors create the illustration to depict the visual image
of the ad. Copywriters and art directors work together to create the storyboard, which provides a play-
by-play sequence of visual scenes and ad copy for a television advertisement. Producers hire
directors and assemble the rest of the production crew.
The final step in an advertising campaign is to evaluate its effectiveness. It is important to determine
whether the advertising message made an impact on the target audience.
There are several methods of measuring advertising effectiveness, including recognition and recall
tests, attitude studies, resonance tests, and behavioral measures.
Simple ways to evaluate advertising effectiveness include tracking retail traffic, using a website stat
counter to track visitors, asking people how they found out about a company, discontinuing
advertisements to measure changes in business, using different telephone numbers in advertising
campaigns, and using direct-response advertisements.

REFERENCES

Chapter 10
Kaser, Ken. 2013. Advertising and Sales Promotion. Cengage Learning Asia Pte Ltd. Philippines

Chapter 14, 18
Kazmi, SHH, and Satish K. Batra. 2004. Advertising and Sales Promotion 2nd ed. Anurag Jain for Excel
Books. New Delhi

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