Marketing Portfolio (CH9, CH12, CH13, CH14, CH15, CH16, CH17, CH18, CH19) ***PowerPoint Content Provided***
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CH16_Advertising_PublicRelation_SalesPromotionCONTENTforWORDDOCUMENT.pptxAdvertising, Public Relations, and Sales Promotion
Chapter 16
Topic Goals
Discuss the effects of advertising on consumers and market share
Identify the major types of advertising
Discuss the creative decisions in developing an advertising campaign
Describe media evaluation and selection techniques
Discuss the role of public relations in the promotional mix
Define and identify objectives of sales promotion and the tools used to achieve the objectives
Effects of Advertising
GOAL #1: Discuss the effects of advertising on consumers and market share
Effects of Advertising
GOAL #1: Discuss the effects of advertising on consumers and market share
Advertising helps marketers increase or maintain brand awareness and, subsequently, market share.
Typically, more is spent to advertise new brands with a small market share than to advertise older brands.
Brands with a large market share use advertising mainly to maintain their share of the market.
Effect of Advertising
Advertising affects consumers’ daily lives as well as their purchases.
Although advertising can seldom change strongly held consumer attitudes and values, it may transform a consumer’s negative attitude toward a product into a positive one.
Finally, advertising can also change the importance of a brand’s attributes to consumers.
By emphasizing different brand attributes, advertisers can change their appeal in response to consumers’ changing needs to try to achieve an advantage over competing brands.
GOAL #1: Discuss the effects of advertising on consumers and market share
Types of Advertising
GOAL #2: Discuss the effects of advertising on consumers and market share
Types of Advertising
Advertising is any form of (a) non-personal, (b) paid communication in which the (c) sponsor or company is identified.
The two major types of advertising are institutional advertising and product advertising.
Institutional advertising is not product-oriented; rather, its purpose is to foster a positive company image among the general public, investment community, customers, and employees.
Product advertising is designed primarily to promote goods or services, and it is classified into three main categories: pioneering, competitive, and comparative.
GOAL #2: Identify major types of advertising
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Types of Advertising
Corporate identity
Pioneering
Competitive
Comparative
Product
Advertising
Institutional
Advertising
Advocacy advertising
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Notes:
Types of Advertising
A product’s place in the product life cycle is a major determinant of the type of advertising used to promote it.
GOAL #2: Identify major types of advertising
Institutional advertising promotes the corporation as a whole and is designed to establish, change, or maintain the corporation’s identity.
A form of institutional advertising is advocacy advertising, typically used to safeguard against negative consumer attitudes and to enhance the company’s credibility among consumers who already favor its position.
Types of Advertising
A product’s place in the product life cycle forms the major determinant of the type of advertising used to promote it.
GOAL #2: Identify major types of advertising
Pioneering
Stimulates primary demand for new product or category. Used in the PLC introductory stage.
Competitive
Influences demand for brand in the growth phase of the PLC. Often uses emotional appeal.
Comparative
Compares two or more competing brands’ product attributes. Used if growth is sluggish, or if competition is strong.
Creative Decisions in Advertising
GOAL #3: Discuss the creative decisions in developing an advertising campaign
Creative Decisions in Advertising
ADVERTISING CAMPAIGN – A series of related advertisements focused on a common theme, slogan, and set of advertising appeals
ADVERTISING OBJECTIVE – Identifies the specific communication tasks that a campaign should accomplish fir a specified target audience during a specified period of time,
GOAL #3: Discuss the creative decisions in developing an advertising campaign
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Creative Decisions in Advertising
Determine the
advertising objectives
Make creative decisions
Make media decisions
Evaluate the campaign
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Notes:
Creative Decisions in Advertising
Before any creative work can begin on an advertising campaign, it is important to determine what goals and objectives the advertising is desired to achieve.
The objectives of a specific advertising campaign often depend on the overall corporate objectives and the product being advertised, and are often determined using the DAGMAR approach.
Defining Advertising Goals for Measured Advertising Results
GOAL #3: Discuss the creative decisions in developing an advertising campaign
The DAGMAR Approach
GOAL #3: Discuss the creative decisions in developing an advertising campaign
Define target audience
Define desired percentage change
Define the time frame for change
Creative Decisions in Advertising
Once objectives are defined, THEN creative work can begin (e.g., identifying the product’s benefits, developing possible advertising appeals, evaluating and selecting the advertising appeals, executing the advertising message, and evaluating the effectiveness of the campaign).
GOAL #3: Discuss the creative decisions in developing an advertising campaign
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Creative Decisions
Develop and evaluate advertising appeals
Execute the message
Evaluate the campaign’s effectiveness
Identify product benefits
GOAL #3: Discuss the creative decisions in developing an advertising campaign
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Exhibit 16.1 – Common Advertising Appeals
Creative Decisions
Message execution is the way an advertisement portrays its information.
The AIDA plan is a good means of executing an advertising message.
An ad should immediately get attention, and hold consumers’ interest, create desire for the good, and motivate the action of purchase.
Exhibit 16.2 provides examples of executional styles used by advertising.
Executional styles often dictate the type of media utilized.
Exhibit 16.2–Common Execution Styles for Advertising
Media Selection and Evaluation
GOAL #4: Describe media evaluation an selection techniques
Media Selection & Evaluation
Media evaluation and selection make up a crucial step in the advertising campaign process.
Major types of advertising media include newspapers, magazines, radio, television, the Internet, outdoor media such as billboards and bus panels.
Recent trends in advertising media include shopping carts, computer screen savers, DVDs, CDs, interactive kiosks, advertisements before movies, posters on bathroom stalls, and “advertainments.”
GOAL #4: Describe media evaluation an selection techniques
Media Selection & Evaluation
Promotion managers choose the advertising campaign’s media mix basis on the following:
cost per contact,
reach,
frequency,
characteristics of the target audience,
flexibility of the medium,
noise level, and
the life span of the medium.
After choosing the media mix, a media schedule designates when the advertisement will appear and the specific vehicles in which it will appear.
GOAL #4: Describe media evaluation an selection techniques
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Media Decisions in Advertising
Newspapers
Magazines
Radio
Television
Internet
Outdoor Media
Direct Mail
Trade Exhibits
Cooperative Advertising
Brochures
Coupons
Catalogs
Special Events
Monitored Media
Unmonitored Media
U.S. advertisers spend roughly $300 billion annually on monitored media.
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Newspapers
Advantages
Geographic selectivity
Short-term advertiser commitments
News value and immediacy
Year-round readership
High individual market coverage
Co-op and local tie-in availability
Short lead time
Disadvantages
Limited demographic selectivity
Limited color
Low pass-along rate
May be expensive
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Magazines
Advantages
Good reproduction
Demographic selectivity
Regional/local selectivity
Long advertising life
High pass-along rate
Disadvantages
Long-term advertiser commitments
Slow audience build-up
Limited demonstration capabilities
Lack of urgency
Long lead time
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Notes:
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Radio
Advantages
Low cost
Immediacy of message
Short notice scheduling
No seasonal audience change
Highly portable
Short-term advertiser commitments
Entertainment carryover
Disadvantages
No visual treatment
Short advertising life
High frequency to generate comprehension and retention
Background distractions
Commercial clutter
Local advertisers are the most frequent users of radio advertising. Radio also lends itself well to cooperative advertising.
The ability to target specific demographic groups is a major selling point for radio stations.
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Notes:
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Television
Advantages
Wide, diverse audience
Low cost per thousand
Creative opportunities for demonstration
Immediacy of messages
Entertainment carryover
Demographic selectivity with cable
Disadvantages
Short life of message
Consumer skepticism
High campaign cost
Little demographic selectivity with stations
Long-term advertiser commitments
Long lead times for production
Commercial clutter
Advertising on television can be very expensive. First-run prime-time shows command rates of $300,000 to $500,000 for a 30-second spot
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Notes:
Public Relations
GOAL #5: Discuss the role of public relations in the promotional mix
Media Selection & Evaluation
Public relations is a vital part of a firm’s promotional mix.
A company fosters good publicity to enhance its image and promote its products.
Popular public relations tools include new-product publicity, product placement, consumer education, sponsorship, company Web sites.
An equally important aspect of public relations is managing unfavorable publicity in a way that is least damaging to a firm’s image.
GOAL #5: Discuss the role of public relations in the promotional mix
Achieving Objectives
GOAL #6: Define and state objectives of sales promotion and the tools used to achieve those objectives
Achieving Objectives
Marketing managers can use sales promotion to increase the effectiveness of their promotional efforts.
Sales promotion can target either trade or consumer markets.
Trade promotions may push a product through the distribution channel using sales contests, premiums, P-O-P displays, trade allowances, push money, training, free merchandise, store demonstrations, and business meetings.
Consumer promotions may push a product through the distribution channel using coupons, rebates, premiums, loyalty marketing programs or frequent buyer programs, contests, sweepstakes, sampling, and point-of-purchase displays.
The biggest trend in sales promotions on both the trade and consumer side has been the increased use of(surprise!!) the Internet.
GOAL #6: Define and state objectives of sales promotion and the tools used to achieve those objectives
Review
