 Advertising
is a PULL strategy in
contrast to sales promotions,
which is a PUSH strategy.
 An
advertising strategy is a plan
to reach and persuade a
customer to buy a product or a
service.

Brand advertising, which aims to
stimulate demand for a particular
brand.

Institutional advertising, which aims
to develop goodwill for a company or
industry.

Classified advertising, which aims to
inform prospects regarding opportunities
such as buy and sell, events and
employment.

Promotional advertising, which aims to
inform prospects about promotional
activities such as a special sale.

Advocacy advertising, which aims to
convince audiences regarding a particular
cause.
 Advertising
objectives must be
relevant to the existing market
situation.
 Marketing
function of advertising is to
inform and to persuade (which will
later be explained in Exhibit 8-1).
 Objectives
must be SMART. The
acronym means;
Specific,
Measurable,
Attainable,
Realistic and
Time-bound.

TO INFORM target customers about:
1.
2.
3.
4.
5.
6.
New product
Product function
Correct usage
New uses
New distribution
Price adjustment
WHAT to say
2. HOW to say it
3. WHERE to say it
4. WHEN to say it
1.
Other critical questions are:
5. HOW MUCH to spend
6. HOW to measure effectiveness of results
The Exhibit 8-2 shows the critical
advertising decisions to be made
before an advertising program can
be implemented. These decisions are
usually made after the target market
and the advertising objectives have
already been defined.
 While
brands advertise to be known,
they must be known for the right
reason and must deliver its promise.
 Brand
awareness leads to brand
association and this is where
positioning comes in.
 Positioning
is the act of
communicating to consumers the
overall positive impression for a
brand, relative to competition.
 Positioning
is also achieved not only
in terms of media communication
but also in terms of adopting
marketing policies consistent with its
desired image.

TO PERSUADE target customers about:
1.
2.
3.
4.
Brand preference
Brand switching
Urgency to buy now
Action to be taken (like phone-in
inquiry)
Price - Beer na Beer: kuhang kuha ang
lasa, sa mas mababang halaga
Product Attribute - French Baker: The
Freshness Baker
Product Category - Ascof Lagundi: the
leading cough remedy that is all natural
Product Source – Ginseng: Proudly
Made in Korea.
User Segment - Duty free Shopping:
For balikbayan shopping
Usage Behavior - Viva Mineral Water:
wash away your excesses
Experience/Feeling - Chowking Dito
kumakain ang masarap kumain
Against Competition - Nizoral
shampoo: 100times better than the
leading brand
1. What position do you currently own?
2. What position do you want to own?
3. Whom do you have to defeat to own
the position you want?
4. Do you have the resources to do it?
5. Can you persist until you get there?
6. Are your tactics supporting the
positioning objective you set?

Ries and Trout also gave a six-step
question framework to proper positioning. It
is important to be consistent in the
positioning, or consumers will be confused.

Al Ries is Chairman of Ries & Ries,
Focusing Consultants. Jack Trout is
Chairman of Trout & Partners. Al Ries and
Jack Trout are undoubtedly the world's bestknown marketing strategists.

Repositioning is done to change the past
perceptions of the target consumer. As
general rule, the more extreme the
change, the more difficult the
repositioning. Repositioning has two
concepts:
Changing an old brand positioning to a
new band positioning.
2. Changing consumers perception of
competitors.
1.
1.
Changing an old brand positioning to a
new band positioning.
Example: Sustagen used to be positioned
as a therapeutic food for the sick as well
as recovering patients. The brand was
repositioned in the product category of a
nutritional drink.
2.
Changing consumers perception of
competitors.
Example: Cetrin was initially positioned as
a vitamin supplement but is now
repositioned as a family juice drink in
powdered form.
Stages in creating advertising:
1.
Preparation of copy strategy and/or brief
to guide the creative team must in our
hypothetical example in exhibit 8-5.
2.
The creative process itself where the
output is a storyboard in the case of a
TV advertisement, “compre” in the case
of print advertisement; and script in the
case of a radio commercial.
3.
Evaluation of the creative output. This
could be a combination of logic, research
and judgement.
Copy brief or copy strategy is the basic
proposition, costumer promise, or
statement of benefits.

It includes the product features and pieces
of evidence (or “reasons why”) that justify
the proposition to make it as convincing as
possible.

Copy brief also includes the tone of voice
on how the message should be delivered
(in case of TV or radio advertisement)
which includes the brand image to be
projected, and frequently the consumer
image, or the picture that target users
ascribe to the brand.
“Advertising will convince families
belonging to the upper and middle
income classes with children in cavityprone ages that brand C is the
therapeutic toothpaste (positioning)
most effective in preventing cavities
(primary end benefit).
The principal support is X02 (features), a
unique formulation in brand C which works by
attacking cavity-causing germs instead of
simply strengthening teeth as done by most
other anti cavity toothpastes. Brand C is
officially accepted by the Philippines Dental
Association (proof). Brand C also comes in two
different flavor (secondary benefits.)
Tone should be clinical, authoritative
and straightforward. If likened to a
person, Brand C could be an elderly
doctor who understands and cares for
the health problems of the family.”
Guide questions are important before a
copy brief can be written. They are:
1.
Brand Overall Objectives – Is our
objective to create new users, or new
users, or more usage for our brand? Is it
to convince users about our superior
features?
2.
Target market – What is the
demographic, behavioral and
psychographics profile of the primary and
secondary target market we plan to
reach?
3.
Diagnostic positioning – In terms of
competitive standing, what attributes
are important to the customers where
we have the advantage?
4.
Factors Influencing Product
Purchase – This answers the where,
how, how often, what sizes and what
variants bought as can be gathered in a
Usage, Attitude, and Interest (UAI)
survey.
NOTE:
 Copy
strategy is not normally
changed unless there is a change in
the product or in ways the
consumers can use the product.
9 Execution Styles
•
Slice of Life - This show one or more
persons using the product in a normal
setting.
•
Scientific Evidence - Colgate has been
using scientific and laboratory
evidences.

Testimonial Evidence - A closely
associated evidencing format is the
testimonial approach where a credible
individual or a group would endorse the
company’s product.
•
Technical Expertise - This shows
company’s expertise and experience in
making the product.

Lifestyle - Emphasizing on how a product
fits in with a lifestyle.
•
Fantasy - Is created around the product or
its use.
•
Image - Many of the advertisements of
apparel brands.
•
Musical - Background music or the ad talent
would be shown singing a song involving the
product.
•
Personality symbol - This associates a
personality to a product.

Exposure (E) is the placement of the
advertisement in a media vehicle such as
TV, radio, billboard, print (newspapers,
magazines, etc.) and online that the
target audience is expected to know see,
hear, or read.

Exposure creates awareness.
Three important and interrelated
exposure variables must be considered:
1.
Reach (R) or the number of consumers
exposed to a particular advertising at least
once during the specified duration. Reach
is composed of two types:
a.
Registration – people who correctly recall
and playback something meaningful.
Recognition – people who could not
playback anything meaningful, but
recognize the advertisement.
b.
2.
Frequency (F) or the number of times
consumers are reached.
3.
Impact (I) or the qualitative value of an
exposure through a given medium size.
Traditional advertising is composed of TV,
radio and print.
From about P20 billion advertising
expenditures in 2000, TV got the lion’s
share at 65%, followed by radio at
17% and print at 18%. As of the year
2000, the following have been denoted:
A.
Television

There are about 11.8 million homes with
TV sets, out of 15.3 million homes
nationwide.
The biggest TV network is ABS-CBN
(Channel 2) with penetration level
covering 97% of homes with TVs,
followed by GMA 7.
Total advertising minutes reached
217,792 minutes.


B.
Radio

There are eleven major stations in
fifteen areas nationwide.
Total advertising minutes reached
3,640,900 minutes.
In the Greater Manila Area, the number
of AM and FM stations are almost even
with slightly more AM stations.
Audience share is 75% in favor of FM
listeners.



C.


Newspapers and Magazines
There are twenty five major newspapers
and fifty-three magazines nationwide.
In terms of circulation, Philippines Daily
Inquirer leads among all newspapers.

To get as much productive calls as
possible, a salesperson should “reach”
the right prospects. Meaning he should
talk to people who are involved, either
directly or indirectly in a purchase.

The salesperson’s selling skills coupled
with his superior knowledge comprise the
“impact” portion that can convert new
prospects to hot prospects.

When hot prospects are followed up
(i.e., “frequency”) for the approval of the
purchase, then sales may eventually
consummated.
When brand has strong brand franchise
When product use up rate is low
When making announcements of high
news value
4. When products advertised is in the
innovative stage (as in a product life
cycle)
5. When target audience is broad and
undefined
6. When product user base is still growing
1.
2.
3.
1.
2.
3.
4.
5.
6.
When weak brand loyalty exists in the
product category
When product use up rate is so fast
When message to be delivered is complex
When high top of mind recall is essential
to purchase
When market pre-emption is desired
When strong competition exists

Gross Rating Point or GRP is the result
of combining Reach (R) and Frequency
(F). Thus, E = R x F
Example
If a given media plan reaches 60% of the
homes with an average frequency is 10
times in a week, the media plan is said to
have a GRP of 600 points (60 x 10) for
that particular week.

Cost Per Thousand (CPM) is a term
used to compare the cost effectiveness of
various media.
Example
Media cost of gaining exposure to 1,000
persons with an advertisement. If Inquirer
charges P120,000 for a black and white
full page advertisement and they have a
circulation of 300,000 readers, their CPM
is 400.
Computation
(P120,000 divided by 300,000 x 1,000)

It is important to always take target
audience into consideration. CPM would
be a better criterion to evaluate media
spending effectiveness.

It is wrong that advertising must be given
a budget based on a fixed percentage of
sales. This is because advertising is an
input of sales and not the other way
around.

The Objective-Task method of
allocating advertising budget is preferred.
1.
Product Category – Products with
several competition or substitutes,
products that are non-essential in
nature, products, that are used
everyday, or new consumer products are
normally advertised more heavily.
2.
Competition and Market Shares –
Since awareness is the first pre-requisite
to customer’s purchase intention, higher
market share targets would require
increase in awareness level, specially
when competition is heavily advertised.
3.
Advertising Frequency – The number
of times needed to put across a brand’s
message to consumers is not important
variable to consider.

One advantage of advertising, specially
effective advertising, is its carry-over
effect even after an accounting year.

While investments in fixed assets like
buildings and equipments are allowed to
be depreciated over a long period of time,
investment in advertising has to be
treated as a current expense.

Direct marketing is often confused with
direct selling such as the activities of
Philamlife and Sara Lee.

Direct marketing seeks to generate a
direct and measurable response to
advertising. It can be a form of direct
mail, telemarketing, fax mail and direct
response media advertising.

Direct response media advertising is
expected to have an increasingly
popularity in the Philippines due to the
increasing number of credit card holders
and the presence of 800 toll-free
telephone number capable of directly
handling inbound telephone orders from
anywhere in the Philippines.

Direct mail is also one of the fastest
growing. This is because capability of
reaching target customers without much
wastage unlike traditional broadcast
media.
1.
Outer Envelope – (which must make
the mailing piece stand out among so
many letters expected to received by the
consumer);
2.
Letter – (which aims to make the
reader want to read and know more
about the offer);
3.
Brochure – (which brings to life the
product being offered); and
4.
Reply Card – (which enables consumers
to take action (order in require) in case
they are interested to buy the company’s
product)
A database or customer file is created
and updated, usually in a computer, to find
out more about customers and the files
used again in the future more purchases.

There are many ways to test the
effectiveness of advertising materials.
Marketers used to relay on Day After
Recall (DAR), Month After Recall (MAD)
research, which limit the test on
consumer recall of advertising.
NOTE:
 Such
tests have been revised to
include the specifics of the recall to
determine if the brand is being
remembered for the right reason.

One advertising research model available
is called the BUY TEST, developed by Dr.
Milton Sherman Group Inc. of New
York.

BUY TEST measures consumer response
to broadcast and occasionally (because of
cost), to print advertising.

BUY TEST utilizes a one-on-one interview
technique with a minimum of 130
respondents per advertising material to
be tested.

BUY TEST divides consumer response into
three distinct categories following three
questions marketers always ask about
their advertising. (See exhibit 8-6)
Persuasion
Does it Persuade?
Involvement
Is it Understood?
Recall
Is it Relevant?

The first step in BUY TEST is to determine
the extent of understanding of the visual
as well as the copy elements of the
advertisement.

The Feelings or Involvement stage seeks
to determine the levels of consumer
emotional reactions to the
advertisements, plus their own
interpretation of its visual and copy
elements.

Consumers reaching the Persuasion stage
demonstrate a high-commitment to the
product with a burning desire to act on
the advertising message.

The BUY TEST model favors
advertisements to reach a high Persuasion
level vis-à-vis the Involvement and Recall
stage.

In fact, advertising visual and copy recall
are analyzed based on answers by
persuaded versus non-persuaded
respondents.

Results of the BUY TEST answer question
like:
“How has the advertisement been
received by the various target
audiences?”
2. “How have the visual and copy elements
contributed to the ad’s effect?”
3. “Is the message or the execution which
is driving performances?”
4. “Are creative devices being interpreted
in the way they were intended?”
1.
NOTE:
•
Questions regarding purchase intent
may be added in the BUY TEST to
provide a greater insight into the
effectiveness of the advertising.