Transcript chpt16

Chpt 9 and Chpt 10
Product
Chpt 11
Place
Chpt 14, Chpt 15, Chpt 16
Promotion
Chpt 17, Chpt 18
Price
Chapter 16
Prepared for Marketing 106
Slide 3
Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 4
Why Do We Do Advertising
• Personal Selling is preferred, because it is so
effective - but, it is expensive sometimes to
contact EVERYBODY this way
• Advertising is not as direct as Personal
Selling, but you can reach a lot of people
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Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 5
Advertising in Canada has to
be International
• Our Canadian market is very multi-cultural
• Advertising in Canada has to acknowledge the
international aspects in order to be successful
• A large part of the market in Toronto is NOT
from the U.K. so we have to have advertising
that can be understood by other people
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Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 6
The Top 10 Advertisers in Canada
Rank
Revenue
(thousands of dollars)
Name
1
General Motors of Canada
2
Procter & Gamble
84 499.5
3
The Thomson Group
70 159.3
4
BCE
53 972.9
5
John Labatt Ltd.
50 036.0
6
Eaton’s of Canada
47 135.9
7
Sears Canada
46 582.1
8
Government of Canada
43 928.7
9
The Molson Companies
42 873.6
Chrysler Canada
41 171.5
10
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113 048.4
1993 stats
Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Prepared for Marketing 106
Slide 7
Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 8
Advertising Objectives are a
Strategy Decision
• Every ad should have clearly defined
objectives
• these objectives guide the people who
create the ads
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Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 9
Product Advertising
Nonpersonal selling of a particular
good or service.
- TV ads
- billboards
- junk mail
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Chapter 16
Slide 10
Institutional Advertising
Also called Advocacy advertising
See slide # 16
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 11
Pioneering Advertising, also called Informative
“… tries to develop primary demand…”
Done in the early stage of the Product Life Cycle.
Competitive Advertising
Direct
Indirect
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Chapter 16
Slide 12
Competitive Advertising
Direct
Tries to get you to take action now - buy the product
now. Immediate Buying
Indirect
Tries to point out the advantages so if you think
about this product later, you will buy their brand
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Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 13
Comparative Advertising
Advertising that makes direct comparisons
with competitive brands.
Companies used to hesitate to do this, but now they
do it freely.
Sometimes it can backfire and cause the viewer to
NOT want to buy the product - if the comparison is
too harsh eg. Political advertising that is too nasty
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Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 14
Comparative Advertising
Some countries do not allow Comparative
Advertising.
Other countries allow it,,, but,, you have to
prove any statements you make
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Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 15
Reminder Advertising
Done in the Maturity and Decline stage of the
Product Life Cycle. You already know about the
product - they want you to keep using it, even if new
competitors come along.
These ads are usually “soft-sell” and try to be
entertaining.
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Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 16
Relationship between Advertising and the Product Life Cycle
Competitive
Comparative
Pioneering
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Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 17
Institutional Advertising
Promoting a concept, idea, or
philosophy, or the goodwill of an industry,
company, or organization.
This is closely related to the PR program
of the company
Also called Advocacy advertising
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Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 18
Institutional Advertising
Used often by Japanese conglomerates
that have many types of products
eg.
Hitachi
SONY
Mitsubishi
Panasonic (Matsushita Electronics) Page 521
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Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 19
Retail Advertising
Retail advertising is the advertising done by stores
that sell “stuff” directly to the consumers.
Co-operative Advertising
The sharing of advertising costs between the
middlemen and retailer and the manufacturer. This
means they will co-operate to display sales
promotion material and share the costs of
commercials and billboards etc.
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 20
Page 523 8th edition
Page 444 9th edition
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Chapter 16
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Slide 21
Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 22
Before we talk about
choosing the best way
to advertise, we first
have to discuss our
Position
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Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 23
Positioning
• Remember Chpt 3
• Positioning involves developing a
marketing strategy aimed at a particular
market segment - in order to achieve a
desired position with respect to the
competition, in the mind of the buyer.
• ie. That buyers will think a certain way
about a product - re: its competitor
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Chapter 16
Slide 24
Positioning
1. By attributes - shampoo (Pantene Pro V)
2. By price - Zeller’s “lowest price is the law”
3. By competitor- Snapple, “We’re #3”
4. By application - Nutrigrain - until we get
beamed to work!
5. By product user - consumer,
industry, govt
6. By product class - convenience, shopping,
specialty
goods
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Chapter 16
Slide 25
Media Selection
• Newspapers
• Magazines
• Television
• Radio
• Direct Mail
• Outdoor
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? - in which
category is the
most money
spent
Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 26
Media Selection
• Newspapers - largest share of advertising, 26%
• Magazines - 12%
• Television - 2nd major category, 14%
• Radio - 7%
• Direct Mail
• Outdoor, billboards etc. - 6%
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Advantages and Disadvantages of the Various Advertising Media
Media
Advantages
Disadvantages
Newspapers
Flexibility
Community prestige
Intense coverage
Reader control of exposure
Co-ordination with
national advertising
Merchandising service
Short lifespan
Hasty reading
Poor reproduction
Magazines
Selectivity
Quality reproduction
Long life
Prestige associated with
some magazines
Extra services
Lack of flexibility
Television
Great impact
Mass Coverage
Repetition
Flexibility
Prestige
Temporary nature of
message
High cost
High mortality rate for
commercials
Evidence of public distrust
Lack of selectivity
Advantages and Disadvantages of the Various Advertising Media
Media
Advantages
Disadvantages
Radio
Immediacy
Low cost
Practical audience
selection
Mobility
Fragmentation
Temporary nature of
message
Little research information
Outdoor
Advertising
Quick communication of
simple ideas
Repetition
Ability to promote products
available for sale nearby
Brevity of the message
Public concern over
aesthetics
Direct Mail
Selectivity
Intense coverage
Speed
Flexibility of format
Complete information
Personalization
High cost per person
Dependence on quality of
mailing list
Consumer resistance
Chapter 16
Slide 29
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Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Prepared for Marketing 106
Slide 30
Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 31
To produce, then additional money to get “air” time
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Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 32
Planning The Best Message
What should an ad accomplish
1. Gain attention and interest
2. Inform and persuade
3. Lead to the person buying
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Chapter 16
Slide 33
Planning The Best Message
“Copy Thrust”
the words you say to get the attention
1. Copy - the text
2. Thrust - the intention, direction
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Chapter 16
Slide 34
Planning The Best Message
“A I D A”
A - Attention
I - Interest
D - Desire
A - Action
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Chapter 16
Slide 35
Direct Response Ads
• Call 1-800-………….
• See our web site at
WWW.STUFF.COM
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Chapter 16
Slide 36
The Advertising Campaign
• When developing a mktg comms
strategy, you do not restrict your
plan to just advertising
• Many things are also done such as
direct mailing, PR, special events,
radio, media
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Chapter 16
Slide 37
Assessing the Effectiveness of an Advertisement
• Pretesting
The assessment of an advertisement’s
effectiveness before it is actually used.
• Post-testing
The assessment of advertising copy
after is has been used.
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Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 38
Advertising Agency
A marketing specialist firm that assists the
advertiser in planning and preparing its
advertisements.
They have specialists who know all about the
effect of different advertising methods and
can help a company with their strategy.
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Chapter 16
Celebrity Marketing
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Slide 39
Having
celebrities lend
their name and
influence to the
promotion of a
product.
Copyright, Professor W.T.G. Richardson, Seneca College
Chapter 16
Slide 40
Role Model Marketing
Marketing technique
that associates a
product with the
positive perception of
a type of individual or
role.
(ie. Naya water with
healthy lifeguards)
Sometimes used by companies who cannot afford to
pay a celebrity.
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Copyright, Professor W.T.G. Richardson, Seneca College