TWO DISCUSSION PLEASE LABEL THE DISCUSSION

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BUS 317-Advertising Week Five

Arens|Schaefer|Weigold

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Readings Chap 14 : Media Planning and Buying Chap 15 : IMC, Direct Marketing,

Personal Selling, Packaging, and Sales Promotion

Chap 16 : IMC: Public Relations, Sponsorship, and Corporate Advertising

Learning Objectives • Explain the role of the media in

effective advertising • Explain the factors that must be

considered in designing packaging • Assess guidelines for planning and

evaluating an advertising campaign

Media Planning • Directing advertising messages to the

right people in the right place at the right time

• Considerations for the media planner – Place of advertising – Media vehicles – Time, period, and frequency for advertising – Opportunities for integrating advertising

with other communication tools

Challenges in Media Planning • Increasing media options

– Difficult to reach a larger audience through a single medium because:

• TV is fragmented • Specialized magazines target specific

population • The web, social media, and other nontraditional

media provide new options to choose from

Challenges in Media Planning • Difficulties in finding prospects for advertising

– Readers and viewers are scattered across new media options – Audiences are selectively and partially consuming media – Consumer’s are spending more time with less traditional

media • Increasing costs due to the restriction by media on the number

of ads sold – Number of messages to be communicated have outstripped

the ability of consumers to process them

Challenges in Media Planning • Increasing complexity in media buying

and selling – Development of value added programs that

provide extra benefits for additional sales • Increasing competition

– Independent media buying services and ad agencies compete over media buys

Media Planning Framework • Review the marketing and advertising

objectives and strategies • Set relevant, measurable objectives

that are realistic and achievable • Devise a strategy for achieving the

objectives • Develop the specific tactical details of

media selection and scheduling

Defining Media Objectives • Media objectives translate the

advertising strategy into goals • Components

– Audience objectives: Definitions of the specific types of people the advertiser wants to reach

• Media vehicles: Particular media programs or publications

– Distribution objectives: Where, when, and how advertising should appear

Audience Size and Message Weight

• Statistical measure of a print medium’s audience

• Includes subscription and vendor sales and primary and secondary readership

Circulation

• Variable used to determine the total reach of a given print medium

• Multiplied by the number of vendor and subscription sales to determine total audience size

Readers per copy (RPC)

Audience Size and Message Weight

• Number of people who read a magazine without buying it

Pass-along rate

• Total size of the audience for a set of ads or an entire campaign

Message weight

• Possible exposure of the advertising message to one audience member

• Known as opportunity to see (OTS)

Advertising impression

Audience Size and Message Weight

• Total of all the audiences delivered by a media plan Gross impressions

• Percentage of homes or individuals exposed to an advertising medium

Rating

• Households with TV sets Television households or TVHH

• Total audience delivery or weight of a media schedule • One rating point equals 1 percent of a particular

market’s population

Gross rating points (GRPs)

Reach, Frequency, and Continuity

• Total number of different people or households exposed to an advertising schedule during a given time

Reach

• Number of times the same person or household is exposed to a vehicle in a specified time span

Frequency

• Duration of an advertising message or campaign over a given period of time

Continuity

Optimizing Reach, Frequency, and Continuity

• Effective reach: Describes the quality of exposure – Measures the number or percentage of the

audience who receive enough exposures for the message to truly be received

• Effective frequency: Average number of times a person must see or hear a message before it becomes effective

Optimizing Reach, Frequency, and Continuity

• Wearout: Point at which an advertising message starts to irritate consumers

• Advertising response curve: Graphical representation of the relationship between advertising levels and sales results

Factors in the Media Strategy • Various targets of a media planner Markets

• How much to budget and where to allocate it Money

• Communications vehicles available to a marketer Media

• Dealing creatively with the available advertising media options

Mechanics

• Overall strategy of selecting and scheduling media vehicles

Methodology

Exhibit 14.12 - Media Selection: Quick List of Advantages

Criteria for Selecting Individual Media Vehicles

• Overall campaign objectives and strategy

• Characteristics of media audiences • Exposure, attention, and motivation

value of media vehicles – Exposure value: Value of a medium

determined by how well it exposes an ad to the target audience

Criteria for Selecting Individual Media Vehicles

– Attention value: Determined by the degree of attention paid to ads in particular media by those exposed to them

– Motivation value: Determined by the medium’s ability to motivate people to act

Criteria for Selecting Individual Media Vehicles

• Cost-efficiency of media vehicles – Cost-efficiency: Cost of reaching the target

audience through a particular medium as opposed to the cost of reaching the medium’s total circulation

– Cost per thousand (CPM): Cost of reaching 1,000 people in a medium’s audience

– Target CPM (TCPM): Cost per thousand to expose a message to the target audience

Factors Affecting the Probability of Ad Exposure

• Senses used to perceive messages • Quantity and type of attention required

by the vehicle • Vehicle's role - Information source or a

diversion • Vehicle's focus - General or specialized

audience • Intrusiveness of the ad in the vehicle

Factors that Increase Attention Value

• Audience involvement with editorial content or program material

• Specialization of audience interest or identification

• Number of competitive advertisers • Audience familiarity with the

advertiser’s campaign • Quality of advertising reproduction • Timeliness of advertising exposure

Stating the Media Strategy • Important as it is difficult for client and

agency management to analyze the logic and consistency of the recommended media schedule

• Cost per point (CPP): Helps determine which broadcast programs are the most efficient in relation to the target audience

Synergy of Mixed Media • Mixed-media approach: Using a

combination of advertising media vehicles in a single advertising campaign

• Synergy: Achieved when the sum of the parts is greater than that expected from simply adding together the individual components

Reasons for Using Mixed Media

• To reach people who are unavailable through only one medium

• To provide repeat exposure in a less expensive secondary medium

• To use the intrinsic value of an additional medium

• To deliver coupons in print media • To produce synergy

Methods for Scheduling Media

• Advertising runs steadily with little variation

Continuous schedule

• Periods of advertising are alternated with periods of no advertising at all

Flighting

• Mixing continuity and flighting strategies

Pulsing

Methods for Scheduling Media

• Promoting high-ticket items that require careful consideration

Bursting

• Buying simultaneous airtime on all four television networks

Roadblocking

• Advertiser floods the airwaves for one day on cable and network channels to make it impossible to miss the ads

Blinking

Media Buyer • Responsible for negotiating and

contracting the purchase of ad space and time in various media – Selection of medium for advertising

• Software programs - Help save time, resulting in increased productivity and efficiency

Key Skills of Media Buyer • Knowing the marketplace • Negotiating the buy • Monitoring performance

Direct Marketing

Companies build their own database of customers and communicate with them

directly through ads and catalogs

Key Characteristics of Direct Marketing

• Interactive • Interaction can take place at any

location • Possibility of the ongoing mutually

beneficial relationships • Use of one or more advertising media

Key Characteristics of Direct Marketing

• Addressability – Database marketing: Tracking and

analyzing the purchasing patterns of specific customers in a computer database and targeting advertising to their needs

• Inform, create awareness, and spur immediate purchase behavior

• Distinguished from mass advertising in measurability, accountability, efficiency, and return on investment

Impact of Databases on Direct Marketing

• Compile and analyze important customer information

• Use of databases – Customer lifetime value: Total sales or profit

value of a customer to a marketer over the course of that customer’s lifetime

– Loyalty (continuity) programs: Reward customers with discounts and free products in return for frequent and continuous patronage

Types of Direct Marketing Activities

• Direct sales: Selling to customers directly, at home or at work – Direct selling: Face-to-face selling away

from a fixed retail location – Telemarketing: Selling products and

services by using the telephone to contact prospective customers

Types of Direct Marketing Activities

• Direct-response advertising: Asks the reader, listener, or viewer to provide feedback straight to the sender – Direct mail – Catalog sales – Direct-response print advertising – Direct-response broadcast advertising – Direct-response digital interactive media

Personal Selling

Advantages

• Personal and persuasive • Facilitates instant

feedback • Flexibility to adjust the

presentation • Flexibility in time • Helps in distribution of

new products • Good for high-priced

items

Disadvantages

• Labor-intensive • Time-consuming • Poor

reputation/perception • Requires sales executives

with the right personality attributes

Role of Personal Selling in IMC

• Functions of salespeople – Information gathering – Information providing – Order fulfillment – Relationship building

Trade Shows • Exhibitions where manufacturers,

dealers, and buyers of get together for product demonstrations and discussions

• Construction of trade-show booths and exhibits has become a major factor in sales promotion plans

Product Packaging • Encompasses the physical appearance

of the container • Includes the design, color, shape,

labeling, and materials used • Ways in which it serves marketers

– Protection – Preservation – Information – Promotion

Product Packaging • Functions

– Creates relationship with customers – Influences in-store shopping decisions – Sets the product apart from competitors – Informs customers of features and benefits

• Design factors – Stand-out appeal – How it communicates verbally and

nonverbally – Image and prestige desired

Product Packaging • Environmental issues

– Consumers expect green packaging – Recyclable tin-coated steel and aluminum

packages have gained popularity • Government impact

– Food and Drug Administration (FDA) – Nutrition Labeling and Education Act

Product Packaging • Reasons to change a package

– Product alteration or improvement – Substitution in packaging materials – Competitive pressure – Environmental concerns – Changes in legislation – Need to increase brand recognition

Sales Promotion • Direct inducement offering extra

incentives all along the marketing route – To accelerate the movement of the product

from the producer to the customer

Positive Effects of Sales Promotion on Brand Volume

• Adds value to brand • Maximizes sales • Helps build short-term market volume • Accelerates sales by motivating

customers to try a new product or brand

Negative Effects of Sales Promotion on Brand Value

• Excessive sales promotion at the expense of advertising can reduce profitability

• Emphasis on brand image and quality makes customers become deal-prone

• Overemphasis on price destroys brand equity

• High cost • Excessive efforts can lead to a price war

Sales Promotion Strategies and Tactics

• Push strategies: Help get products into the dealer pipeline and accelerate sales by offering inducements to dealers, retailers, and salespeople – Trade promotions: Aimed at wholesalers

and retailers to induce product purchase, display, and consumer sales promotion

– Trade advertising: Stimulates intermediaries to buy goods for resale to customers or for use in their businesses

Using Consumer Promotions to Pull Brands Through

Point-of-purchase (P-O-P) materials Coupons

Electronic coupons and convenience

cards

Cents-off promotions, refunds, and

rebates Premiums Sampling

Combination offers

Contests, sweepstakes, and

games

Public Relations (PR) • Focuses on the relationships and

communications that individuals and organizations have with publics • Publics: Employees, customers,

stockholders, competitors, suppliers, or the general population of customers

• Goals • Improve public opinion and build goodwill • Establish and maintain a satisfactory

reputation for the organization

Difference between Advertising and PR

• PR is not paid for like advertising • PR is more trusted because the

message is edited and filtered by the media • Results in stronger credibility

• PR is less precise • PR has less memorability

Marketing Public Relations (MPR)

• Use of public relations activities as a marketing tool

• Advertising and MPR need to be closely coordinated in an IMC program

• Ad agencies have PR departments or affiliate with public relations firms

Public Relations Job • PR planning and research

– Opinion sampling: Consumers provide feedback via interviews, toll-free phone lines, and focus groups

– PR practitioner: • Analyzes the organization’s relationships with

its publics • Evaluates people’s attitudes and opinions

toward the organization

Public Relations Job • Assesses how company policies and actions

relate to different publics • Determines PR objectives and strategies • Develops and implements a mix of PR activities

• Reputation management: Name of the long-term strategic process to manage the standing of the firm with various publics

Publicity and Press Agentry • Publicity: Generation of news about a

person, product, or service that appears in broadcast or print media – Offers a great return on money invested – Must be newsworthy to attract attention

• Press agentry: Planning of activities and the staging of events to: – Attracts attention to new products – Generates publicity about the company

Crisis Management • Company’s plan for handling news and

public relations during crises • Stages of action

– Identify the problem and take immediate corrective action

– Actively cooperate with authorities in the investigation

– Quickly rebuild the brand through strategy

Community Involvement • Companies sponsor or participate in a

local activity or supply a location for an event

• Goal - Develop a dialogue between the company and the community

Other Public Relations Activities

• Responsible for soliciting money for a nonprofit organization or for a cause the company deems worthwhile

Fundraising and membership drives

• Communication materials for public relations people • Online newsroom: Web site that provides PR and

investor information about companies

Publications

• Allows PR professionals to stay on top of any trends and deal with them before they become brand epidemics

Social media

Other Public Relations Activities

• Web-based source of information about a company, its policies, products, or activities

• Helps companies to facilitate relationships with their consumers or other publics

Corporate blog

• Rapidly growing field and very important

Special-events management

Public Relations Tools • News release: Printed or electronic

sheet of information issued to print and broadcast outlets – To generate publicity or shed light on a

subject of interest – Called a press release

• Press (media) kit: Publicity materials that give information to the press at staged events such as press conferences or open houses

Public Relations Tools • Photos of events, products in use, new

equipment, or newly promoted executives

• Feature articles: Soft news about companies, products, or services that is written by a PR person, the publication’s staff, or a third party

Public Relations Tools • Printed materials

– Brochures or pamphlets about the company or its products

– Letters to customers – Inserts accompanying monthly statements – Annual report to stockholders – Other reports – House organ: Internal and external

publications produced by business organizations

Public Relations Tools • Posters, exhibits, and bulletin boards

– Posters: Signs that impart product information or other news of interest to consumers

– Exhibits: Displays that tell about an organization or its products

– Bulletin boards: Internal means for making announcements

• Intranet: Restricted-access computer network designed to meet the internal needs for sharing information

Public Relations Tools • Audiovisual materials: Slides and

videos used for training, sales, or public relations activities – Video news releases (VNRs): News or

feature story prepared in video form and offered free to TV station

Sponsorships and Events • Sponsorship: Fee paid to an event or

organization in return for access to the exploitable commercial potential associated with that event or organization • Fees are paid in cash or in kind • Fairs or exhibitions, festivals, and sports

events

Sponsorships • Cause marketing: Portion of the

proceeds from certain for-profit products are donated to a nonprofit cause – Goal - To increase sales for the products

while raising money and visibility for the cause

• Not the same as philanthropy – Philanthropy: Support of a cause without

any commercial incentive

Benefits of Sponsorship • Offers a means of communicating with

customers and prospects • Approved by public • Has the ability to involve customers,

prospects, and other stakeholders • Highly self-selective audience • Enhances company image • Boosts company morale

Drawbacks of Sponsorship • Expensive when an event is solely

sponsored • Clutter in co-sponsored events • Tricky to evaluate the effectiveness of a

particular sponsorship

Types of Sponsorship • Sports marketing

• Ambush marketing: Utilized by nonsponsors to capitalize on the popularity of an event or property

• By giving the false impression that they are sponsors

• Entertainment • Causes • Arts

Types of Sponsorship • Festivals, fairs, and annual events • Associations and membership

organizations • Venue marketing: Links a sponsor to a

physical site such as a stadium, arena, auditorium, or racetrack

Methods of Sponsorship • Buying into an existing event

– As the sole sponsor – As one of many co-sponsors

• Creating their own

Measuring Sponsorship Results

• Methods – Measuring changes in awareness or image

through pre- and post-sponsorship research surveys

– Measuring spending equivalencies between free media exposure and comparable advertising space or time

– Measuring changes in sales revenue with a tracking device

Pointers for Measuring the Value of Event Sponsorships

• Have clear and measurable goals and narrowly defined objectives

• Measure the goals against a benchmark • Do not change other marketing

variables during the sponsorship • Incorporate an evaluation program • Establish a budget for measuring

results

Corporate Advertising • Broad area of nonproduct advertising

aimed at enhancing a company’s image and increasing lagging awareness

• Areas covered – Public relations advertising – Institutional advertising – Corporate identity advertising – Recruitment advertising

Public Relations Advertising • Attempts to improve a company’s

relationship with its publics • Companies place public relations ads in

other media to: – Promote the programs and their

sponsorship – Enhance their community citizenship – Create public goodwill

Institutional Advertising • Attempts to obtain a long-term

favorable attention for the business as a whole

• Objectives – Build awareness of the company – Make a good impression on the financial

community – Motivate present employees and attract

better recruits – Influence public opinion on specific issues

Institutional Advertising • Advocacy advertising: Communicates

an organization’s views on issues that affect society or business – Advertorials: Ads that are half advertising,

half editorial, and aimed at swaying public opinion

• Umbrella advertising: Communicates messages about a company and its products simultaneously

Corporate Identity Advertising and Recruitment Advertising

• Corporate identity advertising: Done to familiarize the public with a corporation’s name, logos, trademarks, or corporate signatures

• Recruitment advertising: Aimed at attracting employment applications – Found in the classified sections of daily

newspapers or in online job boards

Reference Arens, W. F., Schaefer, D. H., & Weigold, M.F. (2012). M: Advertising. New York: McGraw-Hill Irwin. ISBN: 9780078028915

BUS 317-Advertising �Week Five
Readings
Learning Objectives
Media Planning
Challenges in Media Planning
Challenges in Media Planning
Challenges in Media Planning
Media Planning Framework
Defining Media Objectives
Audience Size and Message�Weight
Audience Size and Message�Weight
Audience Size and Message�Weight
Reach, Frequency, and Continuity
Optimizing Reach, Frequency, and Continuity
Optimizing Reach, Frequency, and Continuity
Factors in the Media Strategy
Exhibit 14.12 - Media Selection: Quick List of Advantages
Criteria for Selecting Individual Media Vehicles
Criteria for Selecting Individual Media Vehicles
Criteria for Selecting Individual Media Vehicles
Factors Affecting the Probability of Ad Exposure
Factors that Increase Attention Value
Stating the Media Strategy
Synergy of Mixed Media
Reasons for Using Mixed Media
Methods for Scheduling Media
Methods for Scheduling Media
Media Buyer
Key Skills of Media Buyer
Direct Marketing
Key Characteristics of Direct Marketing
Key Characteristics of Direct Marketing
Impact of Databases on Direct Marketing
Types of Direct Marketing Activities
Types of Direct Marketing Activities
Personal Selling
Role of Personal Selling in IMC
Trade Shows
Product Packaging
Product Packaging
Product Packaging
Product Packaging
Sales Promotion
Positive Effects of Sales Promotion on Brand Volume
Negative Effects of Sales Promotion on Brand Value
Sales Promotion Strategies and Tactics
Using Consumer Promotions to Pull Brands Through
Public Relations (PR)
Difference between Advertising and PR
Marketing Public Relations (MPR)
Public Relations Job
Public Relations Job
Publicity and Press Agentry
Crisis Management
Community Involvement
Other Public Relations Activities
Other Public Relations Activities
Public Relations Tools
Public Relations Tools
Public Relations Tools
Public Relations Tools
Public Relations Tools
Sponsorships and Events
Sponsorships
Benefits of Sponsorship
Drawbacks of Sponsorship
Types of Sponsorship
Types of Sponsorship
Methods of Sponsorship
Measuring Sponsorship Results
Pointers for Measuring the Value of Event Sponsorships
Corporate Advertising
Public Relations Advertising
Institutional Advertising
Institutional Advertising
Corporate Identity Advertising and Recruitment Advertising
Reference