Microsoft vs. Apples:
Does Advertising Make a Difference?
Shan-Yu Chou
12.Advertising
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Entertain, Deliver a Message
and Satisfy a Need
OUTLINE
 Example:
Five major
decisions
Advertising
Objectives
Advertising
strategy
Advertising
Messages
Message
Execution
Media
Decisions
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GEICO
minutes could save you 15 percent.”
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 “15
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MAJOR DECISIONS IN ADVERTISING
ADVERTISING OBJECTIVES
Objectives Setting
 告知性(informative)
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Budget Decisions
Message Decisions
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 說服性(Persuasive)
 提醒性(Reminder)
Media Decisions
Campaign Evaluation
Advertising
Objectives
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The milk
moustache
campaign
changed
attitudes
toward milk.
Advertising
Objectives
Advertising
Objectives
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Enjoy a better
soup….with a
more adult
taste.
Advertising
Objectives
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ADVERTISING BUDGET FACTORS
Comparative Advertising
Market Share &
Consumer Base
Product
Substitutability
Competition &
Clutter
Advertising
Frequency
Advertising
Budget
advertising media
 Brand
Selling Proposition (Reeves)
Image (Ogilvy)
 Positioning
Advertising
strategy
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Selecting
 Unique
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advertising messages
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DEVELOPING ADVERTISING
STRATEGY
DEVELOPING ADVERTISING
STRATEGY
Creating
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Stage in the
Product Life Cycle
(Trout & Ries)
Advertising
strategy
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UNIQUE SELLING PROPOSITION
THE BEST OF TWO WORLDS:
RUNNING WITH SHOES AND WITHOUT
 M&M
Advertising
strategy
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 JCPenney
Advertising
strategy
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Advertisements need to break through
the clutter:
 Gain attention
 Communicate well
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 Wendy
Un-Cola
We are number 2. We try
harder.
Where is the beef?
The big difference
between us and them is
the pocket. And the price.
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 Avis
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Creating the Advertising
Message
POSITIONING
 7-Up
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 Polaroid
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 Cheer
只溶於口,不溶於手
3 temperatures, one
detergent.
One-step, the world’s
simplest camera
Advertising
Message
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MADISON AND VINE1
CREATING THE ADVERTISING
MESSAGE
 The
 Madison
& Vine—the intersection of
Madison Avenue and Hollywood—
represents the merging of advertising and
entertainment
Advertising
Message
 Two
primary forms:
-Advertainment
-Branded entertainment
(e.g., product placements)
Advertising
Message
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need to be better
planned, more imaginative, more
entertaining, and more rewarding to
consumers
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 Advertisements
Merging of advertising and
entertainment to break through the
clutter.
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15-14
ADVERTAINMENT
ADVERTAINMENT
 Make
TiVo’s product watch, offering special
on-demand ads (e.g., Kraft offering 20
different cooking videos) to subscribers
Advertising
Message
provide
interesting
game online.
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 Examples
 McDonald
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ads themselves so entertaining
that people want to watch them.
http://www.funnygames.nl/sp
el/mcdonalds_2.html
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Advertising
Message
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BRANDED ENTERTAINMENT
 Make
ads too entertaining might
distract the seller’s brand message.
 The intersection of M&V is getting pretty
congested.
 Creating even more of the clutter that it
is designed to break through.
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Advertising
Message
 Making
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the brand an inseparable part of
some other form of entertainment.
 Advertisers paid $1.2 billion on product
placements in 2005, up 30 percent from
the previous year.
 Examples
Pontiac in The Oprah Show and The
Apprentice
The Terminal along with United Airlines
CONCERNS FOR MADISON AND VINE
A show like American Idol contains 36 product
placement per hour on average.
 Customer
route?
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resentment? Take a different
Advertising
Message
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MESSAGE GENERATION
 Types
of reward:
- rational, sensory, social or ego
of experience
-Result-of-use,
-product-in-use,
-Incidental-to-use
Advertising
Message
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 Types
Our passport to
indulgence:
passion in a touch,
perfection in a cup,
summer in a spoon,
one perfect moment.
Advertising
Message
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ADVERTISING APPEALS
 Meaningful
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 Believable
 Distinctive
Advertising
Message
MESSAGE EXECUTION
 Slice
of Life
 Technical
 Mood
 Scientific
Expertise
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 Fantasy
Symbol
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 Personality
or Image
SLICE OF LIFE
 Musical
 Lifestyle
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Evidence
 Testimonial
Evidence
Advertising
execution
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Advertising
execution
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ALL COLORS IN THE WORLD.
IT IS WONDERFUL TO BE DIFFERENT.
IMAGE ADVERTISING
Advertising
execution
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LOOK BEYOND THE
DIFFERENCE
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TESTIMONIAL EVIDENCE
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My PC wasn’t plug-n-play.
It was plug-n-Get-Mad.
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Example of
marketing
strategy
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Advertising
execution
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SLOGANS AND REPETITION
 EX：多喝水沒事,
沒事多喝水
沒有距離
 全家就是你家
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 EX：只有遠傳,
MEDIA IS MESSAGE?
Stewie
Griffin
Underdog
 麥當勞都是為你
 I’m
lovin’ it
Advertising
execution
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It is mine.
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HOLIDAY AD.



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Ad objective
Style
Format
Copy and headline
Advertising
execution
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Advertising
execution

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Design ads
targeted to
specific
audiences.
This ad appears
in theater
playbills.
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MAJOR STEPS FOR MEDIA
SELECTION
 Selecting
media vehicles
 Deciding
on media timing
 觸及率 (Reach)
 頻率 (Frequency)
 影響力 (Impact)
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on reach-frequency-impact
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 Deciding
REACH-FREQUENCY-IMPACT
Gross Rating Points (GRP)=R * F
=Total number of exposures
Weighted Number of Exposures
=RxFxI
Media Decisions
Media Decisions
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Figure 20.2: Relationship Among Trial,
Awareness, and the Exposure Function
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MAJOR MEDIA TYPES
Newspapers

Radio

Television

Magazines

Direct Mail

Outdoor
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
 Internet
Media Decisions
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Media Decisions
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Table 15.2 Profiles of Major Media Types
SELECTING ADVERTISING
MEDIA
Narrowcasting versus shotgun approaches
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 Narrowcasting
focuses the message on
selected market segments
• Lower cost
• Targets more effectively
• Engages customers better
Media Decisions
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Media Decisions
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SELECTING SPECIFIC VEHICLES
 Cost
of producing ads
 Audience
quality
 Audience
engagement
 Editorial
quality
 Seasonal
Media Decisions
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or not?
 Continuity
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per thousand
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 Cost
THE EFFECTIVE AD TIMING PATTERN
or Pulsing?
Media Decisions
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Slide
18-6
ADVERTISING EVALUATION
EVALUATING ADVERTISING
EFFECTIVENESS
Advertising Program Evaluation
Sales Effects
Is the Ad Communicating Well?
Is the Ad Increasing Sales?
Marketers show customers an ad, then ask where they have
seen it in the past.
Unaided recall
Marketers ask participants what ads they saw recently.
Inquiry tests
Includes offers requiring some type of response in the ad; the
number of inquiries that result is a measure of the ad　effectiveness.
Sales tests
Attitude tests
Media Decisions
Involve an effort to find links between advertising and sales.
Measure how effective advertising is in creating a favorable
attitude towards products or organizations
Media Decisions
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Irwin/McGraw-Hill
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Communication Effects
Aided recall
The McGraw-Hill Companies, Inc., 1998
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