5Ms of Advertising

Introduction
• 5Ms stand for Mission, Money, Message, Media and Measure .

• It is a technique for step by step development of Advertising program.

• In developing an advertising program, marketing managers must always

start by identifying the target market and buyer motives.

• Then they can make the five major decisions, known as “the five Ms”:

• 1. Mission: What are our advertising objectives?

• 2. Money: How much can we spend and how do we allocate our
spending across media types?
• 3. Message: What message should we send?
• 4. Media: What media should we use?
• 5. Measurement: How should we evaluate the results?
5Ms of Advertising
1. Mission
1.MISSION - Advertising Objectives
• We can classify advertising objectives according to whether their aim is to inform, persuade,
remind, or reinforce.

• The advertising objective should follow the communication strategies which in turn emerges
from a thorough analysis of the current marketing situation.

• If the product class is new, the objective is to create awareness and if the brand usage is low,
the objective is to stimulate more usage.
• Informative advertising aims to create brand awareness and knowledge of new products or
new features of existing products

• Persuasive advertising aims to create liking, preference, conviction, and purchase of a

product or service. Some persuasive advertising uses comparative advertising, which
makes an explicit comparison of the attributes of two or more brands.

• Reminder advertising aims to stimulate repeat purchase of products and services.

Expensive, four-color Coca-Cola ads in magazines are intended to remind people to
purchase Coca-Cola

• Reinforcement advertising aims to convince current purchasers that they made the right
choice. Automobile ads often depict satisfied customers enjoying special features of their
new car.
2. Money
 2.MONEY – Factors influencing Budget
• FACTORS AFFECTING BUDGET DECISIONS Here are five specific factors to consider
when setting the advertising budget:

1. Stage in the product life cycle—New products typically merit large advertising budgets to
build awareness and to gain consumer trial. Established brands usually are supported with
lower advertising budgets, measured 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 share. To build share by
increasing market size requires larger expenditures.

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 not directly competitive to the brand creates a need for heavier
advertising.

4. Advertising frequency—The number of repetitions needed to put the brand’s message

across to consumers has an obvious impact on the advertising budget.

5. Product substitutability—Brands in less-differentiated or commodity-like product classes

(beer, soft drinks, banks, and airlines) require heavy advertising to establish a unique image
 2.MONEY - Advertising Budget
• Setting the Total Promotion Budget can be done by four techniques

• Affordable Method- They set the promotion budget at the level they think the company can
afford.

• Percentage-of-Sales Method- Other companies use the percentage-of-sales method, setting

their promotion budget at a certain percentage of current or forecasted sales. Here, budget
can be a percentage of revenue generated by the corporate sales or brand’s sales.

• Competitive-Parity Method- here companies set their promotion budgets to match

competitors’ outlays.

• Objective-and-Task Method
It is the most logical budget-setting method. The company sets its promotion budget based
on what it wants to accomplish with promotion. This budgeting method entails (1) defining
specific promotion objectives, (2) determining the tasks needed to achieve these objectives,
and (3) estimating the costs of performing these tasks. The sum of these costs is the
proposed promotion budget. This method is mainly influenced by factors like stage in PLC,
market share and consumer base etc.
3. Message
 3.MESSAGE
• Message generation and evaluation

– Follows the Message Strategy of the overall communication program.

– Message strategy concentrates on what to say. Which features to be

communicated.

– Here the ideas are analysed that will help establish points-of-parity
(PoP) or
points-of-difference (PoD).

– A good ad normally focuses on one or two core selling propositions.

It
elaborates positioning statement.

– Also marketers can generate this key ideas by involving few selected
consumers in
their team, a strategy sometimes called “open source” or
“crowdsourcing
 3.MESSAGE
• Creative development

• The ad’s impact depends not only on what it says, but often more important, on how it
says it.

• This stage follows the Creative Strategy (How to say) of designing communication
program.

• Creative Strategy can be classified into informational or transformational appeals.

Informational appeals - An informational appeal elaborates on product or service

attributes or benefits. Manly adopted for new products. Informational appeals assume
strictly rational and logical processing of the communication.

Transformational appeals- A transformational appeal elaborates on a non-product-

related benefit or image. Transformational appeals often attempt to stir up emotions
or morality that will motivate purchase.
Examples of Appeal
 Few Suggestions to use different
appeals
Informational appeals Transformational appeals

Industrial goods and services Consumer goods and services,

(services doesn’t include experiential experiential
products.
products here).

Individualistic cultures collectivistic cultures

 3.MESSAGE – CREATIVE DEVELOPMENT AND
EXECUTION (Cont.)
• Message execution

• The advertiser now must turn the big idea into an actual ad execution that will
capture the target market’s attention and interest.

• The creative team must find the best approach, style, tone, music, words, format or
celebrity for executing the message.

• Here, a brief review of the formats like television, print, and radio advertising media
is done.

• LEGAL AND SOCIAL RESPONSIBILITY REVIEW IN DEVELOPING ADVERTISEMENT

• A substantial body of laws and regulations governs advertising. In any country. An

advertisement agency should abide all theses rules. Some of the most common rules
are : Advertisement should not false claims, It should not be targeting kids. No direct
comparison of two or more brands are permitted. Alcohol and tobacco
advertisements are banned in many countries etc.
4. Media
 4. Media
• After choosing the message, the advertiser’s next task
is to choose media to carry it.

• The steps here are

– deciding on desired reach, frequency, and impact;
– choosing among major media types;
– Selecting specific media vehicles;
– deciding on media timing; and
– deciding on geographical media allocation.
– Then the marketer evaluates the results of these decisions.
4.Media - Reach, Frequency, and Impact
• Media selection is finding the most cost-effective media to deliver
the desired number and type of exposures to the target audience.

• The effect of exposures on audience awareness depends on the

exposures’ reach, frequency, and impact:
•
Reach (R). The number of different persons or households exposed
to a particular media schedule at least once during a specified time
period.
•
• Frequency (F). The number of times within the specified time
period that an average person or household is exposed to the
message
•
• Impact (I). The qualitative value of an exposure through a given
medium (thus a food ad will have a higher impact in Bon Appetit
than in Fortune magazine)
 4. Media- Choosing media
• Media planners make their choices by considering factors
such as target audience media consumption habits, product
characteristics, message requirements, and cost.

• The media planner must know the capacity of the

major advertising media types to deliver reach, frequency,
and impact.

• The major advertising media along with their costs,

advantages, and limitations are profiled in table (next ppt)
Profiles of Advertising Media
 Alternate Advertising Media
• In recent years, reduced effectiveness of
traditional mass media has led advertisers to
increase their emphasis on alternate
advertising media.

• Place advertising, or out-of-home

advertising
• Billboards
• Public Spaces (buses, Subway, commuter trains etc)
• Product placement
• Point of purchase
 PLACE ADVERTISING
• Place advertising, or out-of-home advertising, is a
broad category including many creative and
unexpected forms to grab consumers’ attention.

• The rationale is that marketers are better off reaching

people where they work, play, and, of course, shop.

• Popular options include billboards, public spaces,

product placement, and point of purchase.
 Selecting Specific Media Vehicles
• There are few guidelines for choosing media vehicles:

• 1) First, the media planner must search for the most cost-effective vehicles within
each chosen media type.
2) Second, they should analyse audience quality of each vehicle.
– For a baby lotion ad, a magazine read by 1 million young mothers has an
exposure value of 1 million; if read by 1 million teenagers, it has an exposure
value of almost zero.

• 3) Third, they adjust the exposure value for the audience-attention probability.
– For example- Readers of Mother & Baby may pay more attention to baby
lotion ads than do readers of femina.

• 4) Fourth, adjust for the medium’s editorial quality (prestige and

believability).
– Young mothers are more likely to believe a magazine ad and to
become more positively disposed toward the baby lotion brand when the ad
is placed within the articles they like and the one which covers full baby's
health care.

• 5) Fifth, consider ad placement policies and extra services (such as regional or

occupational editions and lead-time requirements for magazines)
 Media Timing and Allocation
• An advertiser must also decide how to schedule the advertising over the
course of a year.

• The firm can vary its advertising to follow the seasonal pattern or be the
same all year.

– Some marketers do only seasonal advertising: For instance,

P&G advertises its Vicks NyQuil only during the cold and flu season.

• Finally, the advertiser must choose the pattern of the ads. They are:

– Continuity means scheduling ads evenly within a given period.

– Concentration calls for spending all the advertising dollars in a single period.
– Flighting calls for advertising during a period, followed by a period with no
advertising,
– Pulsing Pulsing is continuous advertising at low-weight levels, reinforced
periodically by waves of heavier activity.
Media Timing and Allocation
(example)
 Geographical media allocation
• In addition to allocating advertising by media category, media
planners must allocate advertising by geography.

• A national approach (advertise in all markets)-Media planners will

choose a national approach if sales are relatively uniform across the
country, such as for Tide laundry detergent or Toyota automobiles.

• A spot approach (advertise only in selected markets) -For example,

the sales of leisure boats are much higher in markets such as
Florida, California and Michigan due to the large water areas in
these markets. Therefore, a leisure boat manufacturer such as
Sea Ray might use a spot approach to target Florida, California and
Michigan while not advertising in other states like Iowa or
Nebraska.

• a combined national plus spot approach (advertise in all markets

with additional spending in selected markets)
5. Measurement
5) Measurement

• Communication-effect research, called copy testing,

– It seeks to determine whether an ad is communicating
effectively. Marketers should perform this test both before an
ad is put into media and after it is printed or broadcast. Recall
and recognition tests are used to determine advertising
effectiveness. See table I, next slide. Example- it captures share
of customer awareness.

• Sales-effect research
– What sales are generated by an ad. The fewer or more
controllable other factors such as features and price are, the
easier it is to measure advertising’s effect on sales. Example- it
captures market share.
Communication-effect research (few examples)
 Sales-effect research

1. Pre- and Post-Campaign Analysis:

• Compare sales figures before and after an advertising
campaign. Analyze the change in market share or sales
volume after running an ad campaign for a specific product.

2. Customer Surveys:
• Ask customers directly if they saw the ad and if it influenced
their purchase decision.