Transcript BA 2303 - StudyDaddy

BA 2303
Principles of Marketing - UNBSJ
Advertising, Sales
Promotion, and Public
Relations
Instructor – Terry Conrod
BA 2303
Learning Objectives
1.Explain the differences between product advertising and
institutional advertising and the variations with each type.
2.Describe the steps used to develop, execute, and evaluate an
advertising program.
3.Explain the advantages and disadvantages of alternative
advertising media.
4.Discuss the strengths and weaknesses of consumer-oriented and
trade-oriented sales promotions.
5.Recognize public relations as an important form of
communication.
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TYPES OF ADVERTISEMENTS
‣ Product Advertisements
‣ Advertisements that focus on selling a good or service and take three
forms: (1) pioneering (or informational), (2) competitive (or persuasive),
and (3) reminder
‣ Institutional Advertisements
‣ Advertisements designed to build goodwill or an image for an
organization, rather than promote a specific good or service.
‣ Pioneering ads, used in the introductory stage of the PLC, tell
people what a product is, what it can do, and where it can be
found. Competitive ads promote a specific brand's features
and benefits. The difference between the two types of ads is
its purpose. Pioneering ads are used to inform, and
competitive ads are used to persuade.
‣ Direct-response advertising seeks to motivate the customer to
take immediate action. For example, a television commercial
that invites the customer to "order now".
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DEVELOPING THE
ADVERTISING PROGRAM
‣ Identifying the Target Audience
‣ Specifying Advertising Objectives
‣ Setting the Advertising Budget
‣ Designing the Advertisement
‣ Message Content
‣ Creating the Actual Message
‣ http://www.youtube.com/watch?v=njauitC80KE
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Concept Check
What are the three common advertising appeals?
Answer:
Three common advertising appeals are: (1) Fear,
(2) Sex, and (3) Humour
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Concept Check
Who is responsible for turning appeals and product
features into attention-getting advertising?
Answer:
The "creative people" in an advertising agency,
copywriters and art directors, have the
responsibility to turn appeals and features such as
quality, style, dependability, economy, and service
into attention-getting, believable advertisements.
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DEVELOPING THE
ADVERTISING PROGRAM
‣ Selecting the Right Media
‣ Choosing a Medium and a Vehicle within That Medium
‣ Basic Terms
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Reach
Rating
Frequency
Gross Rating Points
Cost Per Thousand (CPM)
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Canadian advertising expenditures by medium, as a
percentage of total ad spending
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The language of the media buyer
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Advantages and disadvantages of major advertising media
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Concept Check
What factors must be considered when choosing
among alternative media?
Answer:
Selection criteria between alternative media are:
(1) Know the media habits of the target audience,
(2) Product attributes may necessitate the use of
certain media, and (3) Cost
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Concept Check
You see the same ad in Time and Maclean’s magazines
and on billboards and TV. Is this an example of reach
or frequency?
Answer:
The same ad in Time and Maclean's is an example
of frequency. Frequency is the average number of
times a person in the target audience is exposed to
a message or advertisement.
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Concept Check
Why has the Internet become a popular advertising
medium?
Answer:
The Internet has become a popular medium
because of its: (1) Visual message, (2) Audio
capability, (3) Movement, and (4) Interactive
feature
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Alternative structures of ad agencies
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Concept Check
Explain the difference between pre-testing and posttesting advertising copy.
Answer:
The difference between pre-testing and posttesting is that pre-tests are conducted before the
advertisements are placed in any medium. Some
advertisements may go through post-tests after it
has been shown to the target audience to
determine whether it accomplished its intended
purpose.
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Concept Check
What is the difference between aided and unaided
recall post-tests?
Answer:
After being shown an ad, aided recall is when
respondents are asked whether their previous
exposure to an ad was through reading, viewing, or
listening. Unaided recall is when respondents are
prompted to determine whether they saw or heard
advertising messages. Questions such as, "What ads do
you remember seeing yesterday?" are used.
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SALES PROMOTION
‣ Consumer-Oriented Sales Promotions
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Coupons
Deals
Premiums
Contests
Sweepstakes
Samples
Loyalty Programs
Point-of-Purchase Displays
Rebates
Product Placement
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Sales promotion alternatives
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SALES PROMOTION
‣ Trade-Oriented Sales Promotions
‣ Allowances and Discounts
‣ Co-operative Advertising
‣ Training of Distributors’ Salesforces
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Concept Check
Which sales promotional tool is most common for new
products?
Answer:
The most common sales promotional tool for new
products is coupons.
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Concept Check
What’s the difference between a coupon and a deal?
Answer:
The difference between a coupon and a deal is:
Coupons are printed certificates that give the
bearer a saving or a stated price reduction when
they purchase a specific product. Deals are shortterm price reductions that do not require the
purchaser to present a certificate.
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Concept Check
Which trade promotion is used on an ongoing basis?
Answer:
A trade promotion used on an ongoing basis is
finance allowance.
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Advertising
‣ Any paid form of non-personal communication about
an organization, good, service, or idea by an
identified sponsor.
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Product Advertisements
‣ Advertisements that focus on selling a good or service
and take three forms: (1) pioneering (or
informational), (2) competitive (or persuasive), and
(3) reminder.
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Institutional Advertisements
‣ Advertisements designed to build goodwill or an image
for an organization, rather than promote a specific
good or service.
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Reach
‣ The number of people or households exposed to an
advertisement.
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Rating
‣ The percentage of households in a market that are
tuned to a particular TV show or radio station.
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Frequency
‣ The average number of times a person in the target
audience is exposed to a message or advertisement.
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Gross Rating Points (GRP’s)
‣ A reference number for advertisers, created by
multiplying reach (expressed as a percentage of the
total market) by frequency.
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Cost per Thousand (CPM)
‣ The cost of reaching 1,000 individuals or households
with an advertising message in a given medium.
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Infomercials
‣ Program-length (30-minute) advertisements that take
an educational approach to communication with
potential consumers.
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Pre-tests
‣ Tests conducted before an advertisement is placed to
determine whether it communicates the intended
message or to select among alternative versions of an
advertisement.
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Full-Service Agency
‣ An advertising agency providing the most complete
range of services, including market research, media
selection, copy development, artwork, and
production.
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Limited-Service Agencies
‣ Specializes in one aspect of the advertising process
such as providing creative services to develop the
advertising copy or buying previously unpurchased
media space.
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In-House Agencies
‣ A company’s own advertising staff, which may provide
full services or a limited range of services.
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Post-tests
‣ Tests conducted after an advertisement has been
shown to the target audience to determine whether it
has accomplished its intended purpose.
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Consumer-Oriented
Sales Promotions
‣ Sales tools used to support a company’s advertising
and personal selling efforts directed to ultimate
consumers, examples include coupons, sweepstakes,
and samples.
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Product Placement
‣ Using a brand-name product in a movie, television
show, video, or a commercial for another product.
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Trade-Oriented
Sales Promotions
‣ Sales tools used to support a company’s advertising
and personal selling efforts directed to wholesalers,
distributors, or retailers.
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Co-operative Advertising
‣ Advertising programs by which a manufacturer pays a
percentage of the retailer’s local advertising expense
for advertising the manufacturer’s products.
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Consumer-Generated Media
‣ Media generated by consumers in which the
consumers absorb the time and cost of promotion
efforts and marketers do not necessarily control what
is communicated and how it is communicated.