Marketing Foundation Question.
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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
Pioneering (or Informational)
Competitive (or Persuasive)
Reminder
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
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
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
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
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
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
Training of Distributors’ Salesforces
15-46
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46
PUBLIC RELATIONS
LO5
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
1. Describe several unique characteristics about Google and its business practices.
15-49
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49
VIDEO CASE 15
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
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
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