Transcript Integrated Marketing Communications 8e.

INTEGRATED MARKETING
COMMUNICATIONS
IN ADVERTISING AND PROMOTION
CHAPTER 14
Other Advertising Media
© 2010 South-Western, a part of Cengage Learning
All rights reserved.
PowerPoint Presentation by Charlie Cook
The University of West Alabama
Eighth Edition
Chapter Objectives
After reading this chapter you should be able to:
1. Explain why postal mail advertising is an efficient and
effective ad medium.
2. Understand p-mail’s five distinctive features
compared to mass forms of advertising.
3. Appreciate the role of database marketing, data
mining, and lifetime-value analysis.
4. Appreciate branded entertainment and brand
placements in various venues (movies, TV, etc.).
5. Appreciate the value of yellow-pages advertising.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
14–2
Chapter Objectives (cont’d)
After reading this chapter you should be able to:
6. Recognize the growth and role of video-game
advertising (advergaming).
7. Understand the role of cinema advertising.
8. Appreciate the potential value of various “alternative”
ad media.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
14–3
Table 14.1
Framework for Various Forms of “Other” Advertising
• Direct Advertising via Postal Mail
• Brand Placements in Movies, in TV Programs, and Elsewhere
• Yellow-Pages Advertising
• Video-Game Advertising (Advergaming)
• Cinema Advertising
• Potpourri of Alternative Ad Media
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
14–4
Direct Advertising via Postal Mail
• Postal Mail (P-mail) Advertising
 Is any advertising matter the postal service delivers to
the person whom the marketer wishes to influence.

Letters, postcards, programs, calendars, folders, catalogs,
videocassettes, blotters, order blanks, price lists, and menus.
• Why Use P-mail
 Less expensive than television advertising
 Better targeting of messages to desired prospects
 Easier identification of prospects who purchased
advertised product
 Favorable attitudes of consumers toward mail ads
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
14–5
Illustrations of Successful P-mail
Campaigns
Highly Successful
Direct Mail
Campaigns
Caterpillar 414E
Industrial Loader
Campaign
Stacy’s
Pita Chip
Campaign
The Saab
9–5
Campaign
(B2B)
(Consumer Packaged Good)
(Consumer Durable Good)
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14–6
P-mail’s Distinctive Features
Targetability
Accountability
Measurability
Flexibility
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Efficiency
14–7
What Functions Does P-mail Accomplish?
• P-mail Campaigns Can:
1. Increase sales and usage from current customers
2. Sell products and services to new customers
3. Build traffic at a specific retailer or Web site
4. Stimulate product trial with promotional offers and incentives
5. Generate leads for a sales force
6. Deliver product-relevant information and news
7. Gather customer information that can be used in building a
database
8. Communicate with individuals privately to minimize the
likelihood of competitive detection
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
14–8
The Special Case of Catalogs
• Effects of Catalogs
 Two-thirds of recipients visit cataloguer’s web site
 Sales to catalog recipients are 150% greater
 Catalog recipients buy more items and spend more
money
• Advantages of Using Catalogs
 Saves time
 No shopping pressure
 Comparable goods
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
 No fear for security
 Ease of purchasing
 Attractive guarantees
14–9
Growth in Catalog Marketing
Factors in the Slowdown
in the Growth Rate of
Catalog Marketing
Waning interest
in catalogs
Increased cost of
catalog marketing
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
Third-class postal
rates increases
14–10
Audiovisual Advertising
• Audiovisual Advertising
 Involves the use of electronic devices to present
audiovisual advertising messages captured in the
form of videotapes, CD-ROMs, or DVDs.
 Appears to be both more effective and less expensive
than print advertising delivered via direct mail.
 Research shows customers are less likely to throw
away these mailings than a brochure or other printed
material.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
14–11
The Use of Databases
• Benefits of an Up-to-date Database
 Directs advertising efforts to the best prospects for a
company’s products or services
 Offers varied messages to different groups of
customers
 Creates long-term relationships with customers
 Enhances advertising productivity
 Provides the capability to calculate the lifetime value
of a customer or prospect
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
14–12
The Use of Databases (cont’d)
• Customer Lifetime Value
 Is valuing each present or prospective customer is
viewed not as an address but as a long-term asset
 Is the net present value (NPV) of the profit that a firm
could realize on average new customer during a
given number of years
• Augmenting the Lifetime Value of Customers
 Increase the retention rate
 Increase the referral rate
 Enhance the average purchase volume per customer
 Cut direct costs for distribution channel
 Reduce marcom costs
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
14–13
Table 14.2
Customer Lifetime-Value Analysis
Note: Discount rate assumes an interest rate of 20 percent: D = (1 + i)n
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
14–14
The Use of Databases (cont’d)
• Database Mining
 The computerized process of discovering hidden facts
(i.e., revealing relationships among customer buying
behavior variables) contained in a firm’s databases.
• Database Manipulation and Mail Targeting
 R-F-M system of point values

Recency of a customer’s purchase

Frequency of a customer’s purchases

Monetary value of a customer’s purchases
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
14–15
The Use of Databases (cont’d)
• RFM System in Application
 Testing effectiveness:








Categorize customers into quartiles or quintiles cells
Take a representative random sample from each cell
Distribute a catalogue, brochure or other p-mailing
Provide sufficient time for sampled customers to respond
Determine response rate and average expenditure per cell
Project these statistics to full membership
Based on response-rate and average-expenditure and with
knowledge of the cost of distributing the mailing, calculate
whether this mailing is a profitable proposition
Decision rule: Target direct mailing only to those cells whose
revenue potential outstrips mailing expense
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
14–16
Brand Placements in Movies
and TV Programs
• Brand Placement (Branded Entertainment)
 Shows evidence of limited but growing effectiveness
 Builds brand awareness and enhances recall
 Provides a peripheral route of persuasion
 Is low risk in that it:



Is less intrusive that ads
Is less like to be rejected by younger consumers
Enhances the brand image when appropriately placed
 Can be detrimental if placement control is lost
 Can be difficult to calculate its effectiveness and ROI
 Is becoming more expensive
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
14–17
Brand Placements in Movies
and TV Programs (cont’d)
• Factors determining the value of a brand
placement:
 The amount of onscreen time and foreground or
background positioning of the brand in a scene
 Whether characters use the brand, mention it, and
exclaim its virtues
 Whether the brand appears during an important plot
point
• Younger consumers appear to be the most
responsive to brand placement in movies
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
14–18
Yellow-Pages Advertising
• Yellow Pages
 Is an online and print ad medium for both local and
national advertisers that 60% of consumers use
weekly to:



Save time when they are seeking a product or service
supplier and are prepared to make a purchase
Save energy and money
Find information quickly
• Typical Users
 Are in the 25-to-49 age category
 Are college educated
 Have household incomes of $60,000 and up
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
14–19
Yellow-Pages Advertising (cont’d)
• Distinguishing Features of Yellow-Pages
Advertising
 Ads actively sought by consumers
 Quality of ad placements determined by ad size and
long-term participation of advertisers
 Creative limits on ad format and for entire year
 Annualized method of purchasing ad space
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
14–20
Video-game Advertising
(a.k.a. Advergaming)
• Market Characteristics
 In-game advertising totaled $400 million in 2008
 Paid advertising to total nearly $2 billion by 2011
 60+ million gamers by 2009
• Users
 Are young and over 40 percent are female
 Play a game for an average of 40 hours
 Have an average household income between
$35,000 and $75,000
 Play online with multiple other players
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
14–21
Cinema Advertising
• Market Features
 In-theater advertising is a $1 billion market
 Advertisements appearing prior to a featured
film do not antagonize consumers
• Target Market Characteristics
 Younger consumers are more positively
disposed toward cinema advertising than
older individuals
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
14–22
Potpourri of Alternative Advertising Media
• Alternative Media Examples
 Post-it notes
 Back covers of comic books
 Stadium cup holders
 Skywriting
 Sides of garbage trucks
 Human body
 Restroom space
 Labels on fruits and
vegetables
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14–23
Figure 14.1
3M’s Post-it
Notes as an
Advertising
Medium
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14–24
Figure 14.2
A Football
Stadium’s Cup
Holders as an
Advertising
Medium
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14–25
Closing Advice to Advertisers
• Contact brand users wherever and whenever
possible
• Use all appropriate touch points to convey
messages that will increase brand awareness
and augment images
• Be sure to integrate messages across all touch
points to assure they speak with a single voice.
© 2010 South-Western, a part of Cengage Learning. All rights reserved.
14–26