Transcript Product-focused advertisements

chapter
eighteen
advertising,
public relations,
and sales promotions
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.
LEARNING OBJECTIVES
LO 18-1 Describe the steps in designing and executing
an advertising campaign.
LO 18-2 Identify three objectives of advertising.
LO 18-3 Describe the different ways that advertisers
appeal to consumers.
LO 18-4 Identify the various types of media.
LO 18-5 Identify agencies that regulate advertising.
LO 18-6 Describe the elements of a public relations
toolkit.
LO 18-7 Identify the various types of sales promotions.
18-2
Steps in Planning and
Executing an Ad Campaign
Identify target audience
Set advertising objectives
Determine the advertising Budget
Convey the message
Evaluate and select media
Create advertisements
Assess impact
Advertising Age Website
18-3
Identify Target Audience
Conduct research
Use the information to set
the tone
Getty Images/Comstock Images
Select the media
18-4
Set Advertising Objectives
Pull strategy
Push strategy
©Comstock/PunchStock
©Brand X Pictures/PunchStock
18-5
Advertising Objectives
Inform
Persuade
Remind
18-6
Informative Advertising
• Create and build brand
awareness
• Push the consumer
through the buying cycle
• Inform customers about
upcoming sales events or
arrival of new
merchandise
©TJX Companies, Inc.
18-7
Persuasive Advertising
• Generally occurs in the
growth and early
maturity stages of the
PLC when competition is
most intense
• May be used to
reposition an established
brand in the later stage
of the PLC
©The Procter & Gamble Company Used by permission
18-8
Reminder Advertising
• Communication used
to remind or prompt
repurchases
• Occurs after the
products have gained
market acceptance
Used by Permission of Deutsch Inc as Agent for National Fluid
Milk Processor Promotion Board
18-9
Focus of Advertisements
Product-focused
advertisements
©2000 Image 100 Ltd
Institutional
advertisements
18-10
Determining Advertising Budget
Considerations:
Role that advertising plays in their attempt to meet their overall
promotional objectives
Expenditures vary over the course of the Product Life Cycle
Nature of the market and the product influence the size of the budget
Super Bowl Ads
18-11
Convey the Message
Unique selling
proposition (USP)
Red Bull . . . Gives You Wings
United Negro College Fund . . . A mind is a terrible thing to waste.
Nike . . . Just Do It.
State Farm Insurance . . . Like a good neighbor, State Farm is there
TNT . . . We know drama
18-12
The Appeal
©Procter & Gamble
©Procter & Gamble
Informational appeal
Emotional appeal
18-13
Evaluate and Select Media
Media planning
©Photodisc/Getty Images
The McGraw-Hill Companies,
Inc/John Flournoy, photographer
Ryan McVay/Getty Images
Photodisc/Getty Images
Media mix
Media buy
18-14
Choosing the Right Medium
Medium
Advantages
Disadvantages
Television
Wide reach.
Incorporates sound and video.
High cost.
A lot of channel and program options.
May increase awareness of competitors’ products.
Radio
Relatively inexpensive.
Can be selectively targeted.
Wide reach.
No video, which limits presentation.
Consumers give less focused attention than TV.
Exposure periods are short.
Magazines
Very targeted.
Subscribers pass along to others.
Relatively inflexible.
Takes some time for the magazine to be available.
Newspapers
Flexible.
Timely.
Able to localize.
Can be expensive in some markets.
Advertisements have short life span.
Internet
Can be linked to detailed content.
Highly flexible and interactive.
Allows for specific targeting.
Becoming cluttered.
The ad may be blocked by software on the computer.
Outdoors
Relatively inexpensive.
Offers opportunities for repeat
exposure.
Is not easily targeted.
Has placement problems in some markets.
Exposure time is very short.
Direct
Marketing
Is highly targeted.
Allows for personalization.
Cost can vary depending on type of direct marketing used.
Traditional media, like mail, will be more expensive than newer
media.
18-15
Determine the Advertising Schedule
Continuous
Pulsing
Flighting
©Procter & Gamble
18-16
Create Advertisements
Creativity plays a
major role in the
execution stage
The type of
medium
determines the
execution style
Creativity should
not overshadow
the message
Ads
The execution
style must match
the medium and
objectives
18-17
Assess Impact
Using Marketing Metrics
Pretesting
Tracking
Protesting
18-18

check yourself
1. What are the steps involved in planning an ad
campaign?
2. What are the differences between informational,
persuasive, and reminder advertising?
3. What are the pros and cons of the different media
types?
4. How can the effectiveness of advertising be
evaluated?
18-19
Regulatory and Ethical Issues
in Advertising
Federal Agency
Federal Trade Commission
(FTC) (established 1914)
General Purpose
Enforces federal consumer
protection laws.
Specific Jurisdiction
Enforces truth in advertising laws;
defines deceptive and unfair
advertising practices.
Federal Communications
Commission (FCC) (1934)
Regulates interstate and
international communications by
radio, television, wire, satellite, and
cable.
Enforces restrictions on
broadcasting material that promotes
lotteries (with some exceptions);
cigarettes, little cigars, or smokeless
tobacco products; or that
perpetuates a fraud. Also enforces
laws that prohibit or limit obscene,
indecent, or profane language.
Food and Drug
Administration (1930)
Regulates food, dietary
supplements, drugs, cosmetics,
medical devices (including radiation
emitting devices such as cell
phones), biologics (biological issues),
and blood products.
Regulates package labeling and
inserts, definition of terms such as
“light” and “organic,” and required
disclosure statements (warning
labels, dosage requirements, etc.).
18-20
Public Relations
PR Element
Function
Publications: Brochures, special-purpose single-issue
publications such as books
Inform various constituencies about the activities of
the organization and highlight specific areas of
expertise.
Video and audio: Programs, public service
announcements
Highlight the organization or support cause-related
marketing efforts.
Annual reports
Give required financial performance data and inform
investors and others about the unique activities of
the organization.
Media relations: Press kits, news releases, speeches,
event sponsorships
Generate news coverage of the organization’s
activities or products/services.
Electronic media: Websites, e-mail campaigns
Websites can contain all the previously mentioned
toolbox elements, while e-mail directs PR efforts to
specific target groups.
TOMS Shoes Website
18-21

check yourself
1. Why do companies use public relations as
part of their IMC strategy?
2. What are the elements of a public relations
toolkit?
18-22
Types of Sales Promotion
Promotion
Advantages
Disadvantages
Coupons
• Stimulates demand.
• Allows for direct tracing of sales.
• Has low redemption rates.
• Has high cost.
Deals
• Encourages trial.
• Reduces consumer risk.
• May reduce perception of value.
Premiums
• Builds goodwill.
• Increases perception of value.
• Consumers buy for premium, not product.
• Has to be carefully managed.
Contests
• Increases consumer involvement.
• Generates excitement.
• Requires creativity.
• Must be monitored.
Sweepstakes
• Increases involvement with the product.
• Sales often decline after the sweepstakes is over.
Samples
• Encourages trial.
• Offers direct involvement.
• Has high cost to the firm.
Loyalty Programs
• Creates loyalty.
• Encourages repurchase.
• Has high cost to the firm.
POP Displays
• Provides high visibility.
• Encourages brand trial.
• Is difficult to get a good location in the store.
• Can be costly to the firm.
Rebates
• Stimulates demand.
• Increases value perception.
• Is easily copied by competitors.
• May just advance future sales.
Product Placement
• Displays products nontraditionally.
• Demonstrates product uses.
• Firm often has little control over display.
• Product can be overshadowed.
18-23
Evaluated Sales Promotions
using Marketing Metrics
Realized margin
Cost of additional inventory
Potential increase in sales
Long-term impact
Potential loss from switches from more profitable items
Additional sales by customers
18-24

check yourself
1. What are various forms of sales promotions?
2. What factors should a firm consider when
evaluating a sales promotion?
18-25