Marketing Foundation Question.

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Chapter15PowerPointAdvertisingPRs.pptx

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1

LO2

Describe the steps used to develop, execute, and evaluate an advertising program.

Explain the advantages and disadvantages of alternative advertising media.

LO3

LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 15, YOU SHOULD BE ABLE TO:

Explain the differences between product advertising and institutional advertising and the variations within each type.

LO1

15-2

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2

LO4

Discuss the strengths and weaknesses of consumer-oriented and trade-oriented sales promotions.

Recognize public relations as an important form of communication.

LO5

LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 15, YOU SHOULD BE ABLE TO:

15-3

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3

WHAT IS THE KILLER APP OF ADVERTISING? TELEVISION!

15-4

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4

TYPES OF ADVERTISEMENTS

PRODUCT ADVERTISEMENTS

LO1

Advertising

Pioneering (or Informational)

Competitive (or Persuasive)

Reminder

Product Advertisements

Comparative

Reinforcement

15-5

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5

Welch’s, Fidelity, and Dove

What is the type and purpose of each advertisement?

LO1

15-6

Welch’s

Web site

Fidelity Ad

Dove Chocolate

Web site

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6

TYPES OF ADVERTISEMENTS

INSTITUTIONAL ADVERTISEMENTS

LO1

Institutional Advertisements

Advocacy

Pioneering Institutional

Competitive Institutional

Reminder Institutional

15-7

Chevron Video

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7

Got Milk?

What is the type and purpose of the advertisement?

LO1

15-8

Got Milk?

Web site

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8

DEVELOPING THE ADVERTISING PROGRAM

LO2

Identifying the Target Audience

Specifying the Advertising Objectives

Setting the Advertising Budget

15-9

Doritos Video

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9

DEVELOPING THE ADVERTISING PROGRAM

DESIGNING THE ADVERTISEMENT

LO2

Message Content

Informational Element

Persuasive Element

Types of Appeals

Fear Appeals

Sex Appeals

Humorous Appeals

15-10

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10

What is the appeal and purpose of the Karl Lagerfeld ad?

LO2

15-11

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11

DEVELOPING THE ADVERTISING PROGRAM

DESIGNING THE ADVERTISEMENT

LO2

15-12

Creating the Actual Message

Celebrity Spokespeople

Ideas and Artwork

Cost

K-Swiss

72andSunny

72andSunny Video

K-Swiss Ad

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12

DEVELOPING THE ADVERTISING PROGRAM

SELECTING THE RIGHT MEDIA

LO2

Advertising Media

Maximize Exposure

Minimize Costs

Media Planning Goals

15-13

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13

FIGURE 15-1 Television, direct mail, and newspapers account for more than 60% of all advertising expenditures (in $millions)

15-14

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14

DEVELOPING THE ADVERTISING PROGRAM

SELECTING THE RIGHT MEDIA

LO2

Basic Terms

Reach

Rating

Frequency

Gross Rating Points (GRPs)

Cost per Thousand (CPM)

= Reach × Frequency

15-15

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15

USING MARKETING DASHBOARDS What is the Best Way to Reach 1,000 Customers?

Cost per Thousand (CPM) Impressions

LO2

15-16

CPM = (cost of ad ÷ audience size) x 1000

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16

FIGURE 15-2 Advertisers must consider the advantages and disadvantages of the many media alternatives

15-17

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17

DEVELOPING THE ADVERTISING PROGRAM

DIFFERENT MEDIA ALTERNATIVES

LO3

Television

Out-of-Home TV

Online TV (OTV)

15-18

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18

DEVELOPING THE ADVERTISING PROGRAM

DIFFERENT MEDIA ALTERNATIVES

LO3

Television

Wasted Coverage

Cable and Satellite TV

Infomercials

15-19

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19

DEVELOPING THE ADVERTISING PROGRAM

DIFFERENT MEDIA ALTERNATIVES

LO3

Radio

Satellite Radio

Drive Times

15-20

Walmart

Radio Ad

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20

DEVELOPING THE ADVERTISING PROGRAM

DIFFERENT MEDIA ALTERNATIVES

LO3

Regional Issues

Magazines

15-21

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21

DEVELOPING THE ADVERTISING PROGRAM

DIFFERENT MEDIA ALTERNATIVES

LO3

Newspapers

Falling Circulation & Ad Revenue

New Types of News Organizations

Online and Mobile

15-22

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22

DEVELOPING THE ADVERTISING PROGRAM

DIFFERENT MEDIA ALTERNATIVES

LO3

Yellow Pages

15-23

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23

DEVELOPING THE ADVERTISING PROGRAM

DIFFERENT MEDIA ALTERNATIVES

LO3

Paid Search

Rich Media

Internet

Banner/Display Ads

Assessment

15-24

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24

MAKING RESPONSIBLE DECISIONS Who is Responsible for Click Fraud?

LO3

Pay-to-Read

Click Bots

Webtipping

15-25

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25

DEVELOPING THE ADVERTISING PROGRAM

OTHER MEDIA ALTERNATIVES

LO3

Outdoor

Transit Advertising

Billboards

15-26

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26

DEVELOPING THE ADVERTISING PROGRAM

OTHER MEDIA ALTERNATIVES

LO3

Other Media

Placed-Based Media

Selection Criteria

Media Habits

Costs

Product Attributes

15-27

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27

DEVELOPING THE ADVERTISING PROGRAM

SCHEDULING THE ADVERTISING

LO3

Factors to Consider

Buyer Turnover

Forgetting Rate

Purchase Frequency

15-28

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28

DEVELOPING THE ADVERTISING PROGRAM

SCHEDULING THE ADVERTISING

LO3

Approaches

Continuous (Steady) Schedule

Pulse (Burst) Schedule

Flighting (Intermittent) Schedule

15-29

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29

EXECUTING THE ADVERTISING PROGRAM

PRETESTING THE ADVERTISING

LO3

Pretests

Portfolio Tests

Theater Tests

Jury Tests

15-30

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30

EXECUTING THE ADVERTISING PROGRAM

CARRYING OUT THE ADVERTISING PROGRAM

LO3

Full-Service Agency

Limited-Service Agencies

In-House Agencies

15-31

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31

FIGURE 15-A Alternative structures of advertising agencies used to carry out the advertising program

15-32

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32

ASSESSING THE ADVERTISING PROGRAM

POSTTESTING THE ADVERTISING

LO3

Posttests

Aided Recall

Unaided Recall

Noted

Read Most

Seen-Associated

Attitude Tests

Inquiry Tests

Sales Tests

15-33

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33

FIGURE 15-B Sales promotions can be used to achieve many objectives

15-34

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34

SALES PROMOTION

CONSUMER-ORIENTED SALES PROMOTION

LO4

Consumer-Oriented Sales Promotion

Coupons

15-35

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35

SALES PROMOTION

CONSUMER-ORIENTED SALES PROMOTION

LO4

Deals

15-36

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36

SALES PROMOTION

CONSUMER-ORIENTED SALES PROMOTION

LO4

Premiums

Self-Liquidating: Free Toy in Happy Meal

Deal-Prone & Value Seeing Consumers

15-37

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37

SALES PROMOTION

CONSUMER-ORIENTED SALES PROMOTION

Contests

LO4

15-38

Dorito’s Crash the

Super Bowl

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38

SALES PROMOTION

CONSUMER-ORIENTED SALES PROMOTION

Value-Based Prizes

Experience-Based Prizes

LO4

Sweepstakes

15-39

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39

SALES PROMOTION

CONSUMER-ORIENTED SALES PROMOTION

LO4

Samples

15-40

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40

SALES PROMOTION

CONSUMER-ORIENTED SALES PROMOTION

LO4

Loyalty Programs

15-41

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41

SALES PROMOTION

CONSUMER-ORIENTED SALES PROMOTION

LO4

Point-of-Purchase Displays

15-42

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42

SALES PROMOTION

CONSUMER-ORIENTED SALES PROMOTION

LO4

Rebates

15-43

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43

SALES PROMOTION

CONSUMER-ORIENTED SALES PROMOTION

Product Placement

LO4

15-44

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44

SALES PROMOTION

TRADE-ORIENTED SALES PROMOTION

LO4

Trade-Oriented Sales Promotion

Allowances and Discounts

Merchandise Allowance

Finance Allowance

Case Allowance

Free Goods

Floor Stock Protection

Freight Allowance

15-45

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45

SALES PROMOTION

TRADE-ORIENTED SALES PROMOTION

LO4

Cooperative Advertising

Training of Distributors’ Salesforces

15-46

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46

PUBLIC RELATIONS

LO5

Publicity Tools

News Release

News Conference

Public Service Announcement (PSA)

15-47

Red Cross Videos

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47

GOOGLE, INC.: THE RIGHT ADS AT THE RIGHT TIME

VIDEO CASE 15

15-48

Google Video Case

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48

VIDEO CASE 15

GOOGLE

1. Describe several unique characteristics about Google and its business practices.

15-49

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49

VIDEO CASE 15

GOOGLE

2. What is Google’s philosophy about advertising? How can less advertising be preferred to more advertising?

15-50

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50

VIDEO CASE 15

GOOGLE

3. Describe the types of online advertising available today. Which type of advertising does Google currently dominate? Why?

15-51

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51

VIDEO CASE 15

GOOGLE

4. How can Google be successful in the display advertising business? What other areas of growth are likely to be pursued by Google in the future?

15-52

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52

WHAT MAKES A MEMORABLE TV COMMERCIAL?

IN-CLASS ACTIVITY 15-1

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ICA 15-1

What Makes a TV Ad Memorable?

Gold’n Plump

Ad

Pepsi Ad

Apple’s

“1984” Ad

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RECOGNIZING ADVERTISING SLOGANS/TAGLINES

IN-CLASS ACTIVITY 15-2

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VALASSIS PRODUCT SAMPLING PROMOTIONS

IN-CLASS ACTIVITY 15-3

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ICA 15-3

Product Sampling

About Valassis

About FSIs

Example:

Product Sampling Promotion

Valassis and Nutella

Nutella

Web site

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PRODUCT PLACEMENT IN MOVIES AND TV

IN-CLASS ACTIVITY 15-4

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Advertising

Advertising is any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor.

15-62

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62

Product Advertisements

Product advertisements are advertisements that focus on selling a good or service and which take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3) reminder.

15-63

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63

Institutional Advertisements

Institutional advertisements are advertisements designed to build goodwill or an image for an organization rather than promote a specific good or service.

15-64

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64

Infomercials

Infomercials are program-length (30-minute) advertisements that take an educational approach to communication with potential customers.

15-65

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65

Pretests

Pretests are tests conducted before an advertisement is placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisement.

15-66

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66

Posttests

Posttests are tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose.

15-67

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67

Consumer-Oriented Sales Promotion

Consumer-oriented sales promotion consists of sales tools used to support a company’s advertising and personal selling directed to ultimate consumers. Also called consumer promotions.

15-68

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68

Product Placement

Product placement is a consumer sales promotion tool that uses a brand-name product in a movie, television show, video game, or a commercial for another product.

15-69

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69

Trade-oriented sales promotions are sales tools used to support a company’s advertising and personal selling directed to wholesalers, distributors, or retailers. Also called trade promotions.

Trade-Oriented Sales Promotions

15-70

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70

Cooperative Advertising

Cooperative advertising consists of advertising programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products.

15-71

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71

Publicity Tools

Publicity tools are methods of obtaining nonpersonal presentation of an organization, good, or service without direct cost, such as news releases, news conferences, and public service announcements.

15-72

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72