National clothing retailer, Old Navy has been known for its creative ad campaigns for a
number of years. In 2010, the company decided to tap into some Hollywood talent to
help promote its brand. Actors Jaime Pressly, Bailey Chase, and Judy Greer were signed
to support the company’s Scream for Savings initiative, a campaign designed to reach
consumers with comedic messages. Old Navy spent over $100 million in measured
media through the first two-thirds of 2010, and annual ad spending has topped $175
million in recent years.
(“Old Navy Taps Hollywood Talent for Halloween Spot” Brandweek Magazine,
October 29, 2010)Old Navy intends to air its comedic advertisements primarily on its
website and various social media outlets. The company believes that because consumers
spend so many hours using these forms of media, their ads will be seen over and over
again. Repeated exposure to a particular advertisement is called
a. over-advertising.
b. repetition.
c. brand exposure.
d. brand recognition.
The Optima Bike Company manufactures broad-tire, three-wheeled and two-wheeled
bicycles mostly for the retirement market. Its primary market is seniors, usually those
who live in retirement communities where there are clearly designated and safe bike
paths. Seniors-and especially the younger baby boomers-like these recreational vehicles
because they are easy and safe to ride. The company has had some early successes in
Florida, Arizona, and California, where such communities began. Optima now wants to
expand to other retirement enclaves. It has learned from two well-conducted consumer
research studies that the main way that male retirees buy the Optima line is through the
urging of wives who want to exercise in some way other than playing golf.Optima
decides to engage an ad agency to capitalize on this consumer insight and promote its
bikes to newer golf communities. It asks two agencies to pitch for its business and gives
each a meeting in which it conveys the information above.Alpha Agency is based in
Miami and insists that its creative team is best suited to promote Optima. Its managers
tell the prospective client that this team is well versed in advanced animation techniques
and can dramatize the features of Optima’s two- and three-wheeled bikes in a dynamic
way. They’ll focus on how fast they can go and how they can “transform the ride” into
an adventure-this has worked in other ads, and this will appeal to the male consumers
who need to be lured away from the golf course. Following this initial display of
product prowess, they suggest a campaign that demonstrates how the bikes can be