Transcript PowerPoint Chapter 18

Chapter 18
Advertising Sales
Promotion, and
Public Relations
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Advertising
 Paid, nonpersonal communication through
various media by business firms, not-for-profit
organizations, and individuals who hope to
inform or persuade members of a particular
audience
 Types of Advertising
Product Advertising
Institutional Advertising
18-2
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When this advertisement broke
it became a success. Before
viewing the video segment,
can you guess which Pepsi
commercial it is?
18-3
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 Product advertising
Nonpersonal selling of a particular good or
service
An example of a product
advertisement
18-4
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 Institutional advertising
Institutional advertising promotes a concept,
an idea, a philosophy, or the good-will of an
industry, company organization, person,
geographic location, or government agency
Corporate advertising
18-5
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An example of corporate
(Goodwill) institutional
advertising seen in this
award-winning classic.
18-6
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 Objectives of Advertising
Informative
Persuasive
Reminder
18-7
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 Advertising objectives in relation to the stage
in the product life cycle
18-8
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Where do you think Quiznos is
on the Product Life Cycle? As
the Advertising Manager what
form of advertising would you
recommend?
18-9
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An example of a persuasive
advertisement competitively
stressing the reliability of gas
(over the implied competitor,
electricity)
18-10
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 Heinz
 A reminder ad
18-11
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Class Discussion
Is the purpose of this ad
primarily to inform,
persuade, or remind?
18-12
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Advertising Strategies
 Comparative
Emphasizes
messages with
direct or indirect
promotional
comparisons
between
competing
brands.
18-13
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 Celebrity
Testimonial
The use of
celebrity
spokespeople to
try to boost the
effectiveness of an
advertising
message
18-14
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An example of a celebrity
testimonial advertisement
18-15
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 Retail
All advertising by retail stores that sell
directly to the consuming public
Varies widely in effectiveness
Should be assigned to one person whose
sole responsibility and authority is
developing an effective retail advertising
program
18-16
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 Cooperative Advertising
When a retailer and a manufacturer or
wholesaler share advertising costs
Usually requires that the ad features the
manufacturer’s or wholesaler’s product
18-17
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 Interactive
Interactive media are communication
channels that induce message recipients to
participate actively in the promotional effort.
Creates a dialogue, providing more material
as the user asks.
18-18
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Creating an Advertisement
 Translating Advertising Objectives into
Advertising Plans
Best ads are those which are created by
pinpointing goals like:
Educating consumers
Enhancing brand loyalty
Improving consumer perceptions
18-19
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Elements of the advertising
planning process
18-20
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 Advertising Messages
Ads must be meaningful, believable, and
distinctive
Creator must decide whether to focus on
either:
A practical appeal
Emotional responses
Advertising Campaign
18-21
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Every year Publishers Clearing
House has the “Big Give Away.”
Other than making some lucky
person rich what do you think their
real message is? What would you
say are the objectives for their
promotional campaign?
18-22
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Subway has had success with a
series of advertisements featuring a
customer who lost weight eating
their product. Here is an example
two years into the campaign.
18-23
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Humor
Examples of advertisements
using an emotional appeals
18-24
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Fear
 Developing and Preparing Ads
Should flow logically from the promotional
theme selected
Advertisement should emphasize creativity,
continuity, and possibly an association with
other company products
Advertisement should:
Gain Attention and interest
Inform and/or persuade
Lead to purchase or other desired action
18-25
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 Elements of a
typical
advertisement
18-26
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 Creating Interactive Ads
Banner
Keyword Ad
Advertorials
Interstitials
18-27
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Media Selection
 Television
Has grown to rival newspapers as the
dominant advertising medium
Greatest share of TV ad revenues come from
companies that advertise nationally
Newest trend: Virtual ads
Another trend: abbreviated spots
18-28
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An example of an
abbreviated television spot
18-29
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 Radio
Popular choice for up-to-the-minute
newscasts
Also popular for targeting advertising
messages to local audiences
Recently, has become the fastest-growing
media alternative
Playing an increasingly important role as a
national, an even the global, favorite
18-30
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 Newspapers
Continue to dominate local markets
Retail and classified advertisement are key
Advantages include flexibility and prestige
Newspapers facilitate coordination between
local and national advertising
Newspapers offer powerful merchandising
18-31
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 Circuit City
Newspaper
Insert
A free
standing insert
18-32
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 Magazines
Divided into two broad categories of consumer
magazines and business magazines
Top four in the U.S.
TV Guide
People
Sports Illustrated
Time
18-33
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 Targeting different consumer interests through
magazine advertising
18-34
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 Direct Mail
Over 4.5 million tons of direct-mail offers fill
U.S. mailboxes annually
Almost half is immediately discarded a junk
But, Americans spend about $200 billion
annually on direct-mail promotions
Use of direct-mail accounts for 19% of total
advertising expenditures
18-35
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 Example of Direct
Mail piece
Typical Contents
of Direct Mail
Envelope
18-36
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 Outdoor Advertising
Includes billboards and painted bulletins or
displays
The oldest and simplest media business
Is particularly effective along metropolitan
streets and other high-traffic areas
Faces public concern over aesthetics
18-37
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 Interactive Media
Contains characteristics of both print and
broadcast media
Enhances two-way communication and
encourages audience participation
Companies use interactive media to
supplement other media
18-38
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 Other Advertising Media
Includes transit advertising placed both inside
and outside the buses, subway trains
installations, and commuter trains
Also includes ads on the roof of taxicabs, long
bus stop shelters in benches, telephone
booths, and even parking meters
18-39
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Media Scheduling
 Timing and sequencing of advertisements
 Media scheduling is influenced by
Sales patterns
Repurchase cycles
Competitors’ Activities
18-40
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 Hypothetical Media Schedule for a New Car Introduction
18-41
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Sales Promotion
 Marketing activities other than personal
selling, advertising, and publicity that
stimulate consumer purchasing and dealer
effectiveness
 Consumer-Oriented Promotions
 Trade-Oriented Promotions
18-42
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 Seven Most Popular Consumer Promotion Techniques
PERCENTAGE OF
MARKETERS
TECHNIQUE
WHO USE IT
Coupons in retail ads
90
In-store coupons
88
Refunds
85
Electronic in-store displays
83
Samples of established products
78
Premiums
75
Sweepstakes
70
18-43
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 Consumer-Oriented Promotions
 Coupons and Refunds
Coupons offer discounts on the purchase
price. Nearly $5 billion redeemed annually
Refunds offer cash back to consumers with
proof of purchasing one or more products
Reduce the effective price, without affecting
the price-quality relationship
18-44
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 Taco Bell
 Advertisement
Uses Coupons
in Free
Standing
Insert to
Promote New
Food Line
18-45
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 Samples, Bonus Packs, and Premiums
Sampling: The free distribution of a product
in an attempt to obtain future sales.
Bonus pack: A specially packaged item that
gives the purchaser a larger quantity at the
regular price.
Premiums: Items given free or at a reduced
cost with the purchases of other products
18-46
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 Gattaca
 Sampling
Designed to
Build
Awareness
18-47
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 Contests and
Sweepstakes
Contests require
entrants to solve
problems or write
essays
Sweepstakes select
winners by chance
18-48
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 Specialty Advertising
Sales promotion technique that places the
advertiser's message on useful articles that
are then distributed to target markets
More than $8 billion worth of specialty
advertising items are given out annually
18-49
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 Trade-Oriented Promotions
 Trade allowances
 Point-of-purchase
18-50
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Public Relations
 Public relations: the firm’s communications
and relationships with its various publics
Nonmarketing public relations
Marketing public relations
18-51
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 Publicity: nonpersonal stimulation of demand
for a good, service, place, idea, person, or
organization by unpaid placement of
significant news regarding the product in a
print or broadcast medium
18-52
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Cross Promotion
 Cross promotion: a campaign in which
marketing partners share the cost of a
promotional campaign that meets their mutual
needs
18-53
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 Minute Maid
and Pillsbury
 The Two
Firms Join in
a Cross
Promotion
18-54
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Measuring Promotional Effectiveness
 Companies must measure how promotional
programs contribute to increased sales and
profits
 This is one of the most difficult undertakings
in marketing
18-55
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 Measuring Advertising Effectiveness
 Pretesting is the assessment of an
advertisement for its effectiveness before it is
actually used
18-56
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 Posttesting is the assessment of an
advertisement’s effectiveness after it has been
used
Starch Readership Report
Unaided recall tests
Inquiry tests
Split runs
18-57
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 Magazine
Advertisements
With Starch
Scores
18-58
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 Measuring Sales Promotion Effectiveness
Since many sales promotions result in
direct consumer responses, marketers can
relatively easily track their effectiveness
As with other methods, marketers must
weigh the cost against the benefits
18-59
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 Measuring Public Relations Effectiveness
Typically involves determining
Whether the message was heard by the
target audience
Whether it had the desired influence on
public opinions
18-60
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 Evaluating Interactive Media
Measurements include
Impressions
Click-throughs
18-61
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 Advertising Ethics
Puffery
Deception
Uniform Commercial Code
18-62
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