Transcript Session 4 Advertising

Promotion: Advertising
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-1
Advertising
• Advertising
= Involves non-personal communication with a determined message
– The most visible and contentious aspect of marketing
• Marketing managers must decide
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who is their target audience
what kind of advertising to use
how to reach customers (via which types of media)
what to say to them (the copy strategy)
who will do the work (the company’s own advertising department or
an outside agency?)
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-2
Figure 15.1 Strategy planning for
advertising
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-3
The importance of advertising
• Advertising expenditure
= Involves a huge amount of money
– Expenditure has grown across the world
– US accounts for about 50% of worldwide advertising budgets
– Companies spend only a small percentage of sales on advertising
– Major expense is for media time/space
• Work is done by relatively few people
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-4
Setting advertising objectives
• Help introduce new products to target markets
• Help position the firm's brand or marketing mix by informing
and persuading target customers or intermediaries about its
benefits
• Help obtain desirable outlets (distribution)
• Provide ongoing contact with target customers
• Pave the way for personal selling effort
• Get immediate buying action
• Help buyers confirm purchasing decisions
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-5
Figure 15.2 Examples of different
types of advertising over adoption
process stages
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-6
Types of advertising
• Product advertising
= Tries to sell a specific product to final users or channel members
– Pioneering advertising builds primary demand
– Competitive advertising builds selective demand
• Corporate/institutional advertising
= Tries to promote an organisation's image, reputation or ideas—rather
than a specific product
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-7
Exhibit 15.1c
Product advertising aims to promote a product
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-8
Exhibit 15.2a
Corporate advertising aims at creating a strong identify for the
organisation -
http://www.qantas.com.au/travel/airlines/i-still-call-australiahome/global/en
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-9
Coordinating advertising efforts
• Vertical cooperation
= Involves the cooperation of members from different levels of a
distribution channel
– Is common in relation to advertising decisions
• Advertising allowances
= Price reductions given to organisations in the channel to encourage
them to advertise or otherwise promote the supplier’s products locally
• Horizontal cooperation
= Involves cooperation between several members at the same level of a
distribution channel
– Often occurs in relation to advertising
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-10
Major advertising media
Traditional
• Magazines
• Television
• Newspapers
• Radio
• Outdoors
• Cinema
http://www.abc.net.au/tv/gru
entransfer/gruensessions.
htm
New Digital Media
• Internet
• Mobile
• Social Media & New
Media
DVD on New Digital Media
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-11
Choosing the ‘best’ advertising
medium
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Promotional objectives
Target market you need to reach
Funds available
Nature of the media
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Who it reaches
With what frequency
At what impact
At what cost
• Overall fit with the rest of the marketing mix
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-12
Radio & television – daytime/evening
90%
80%
85%
89%
70%
60%
50%
41%
38%
40%
Television
30%
Radio
20%
10%
0%
Daytime
Evening
Source: Adapted from “Radio’s Advantage: Advertising Effectiveness Study”, Commercial Radio Australia Ltd 2006
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-13
Table 15.2 Advantages and disadvantages of
several types of media
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-14
Table 15.2 Advantages and disadvantages of
several types of media (cont.)
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-15
Table 15.2 Advantages and disadvantages of
several types of media (cont.)
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-16
Table 15.2 Advantages and disadvantages of
several types of media (cont.)
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-17
Exhibit 15.3a
To attract attention, advertisers can use bold graphics, visual
tricks and attractive celebrities
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-18
Good Ads vs Bad
• CLASS ACTIVITY
• Gruen Transfer Unilever Ad – Evolution
• Gruen Transfer Screaming Ad
• What other ads can you remember as fitting into the good &
bad categories and why?
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-19
Measuring advertising
effectiveness
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•
Sales
Direct-response advertising
Pre-testing advertising
Attitude research
Laboratory-type devices
Split runs of advertisements
Customer recall
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-20
International aspects of
advertising
• Legal aspects of advertising
In most countries, the government takes an active role in
deciding what kinds of advertising are permitted, what is
considered fair and what is inappropriate
• Global agencies for global advertising
– Many agencies are small (10 or fewer employees)
– Some large agencies have merged, creating mega-agencies
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-21
Table 15.3
Top nine advertising agency supergroups and examples of
products they advertise
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-22
Direct-response promotion
= Direct communication between a seller and the individual
customer using a promotion method other than face-to-face
personal selling
• Distinctive feature
– It attempts to evoke a direct, measurable response from the customer
• Closely tied to the use of a database to target customers
• Started with mail advertising, but has evolved to include
other media
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-23
Direct-response online
• Website
– It is often part of a promotional mix
– It can provide detailed information and links to outside sources of
information
– A viewer can respond directly by clicking to obtain more detailed
information
• Portals
– A small subset of the total number of websites account for a large
percentage of the potential audience
– Portals are websites that act as a gateway to the Internet
• Targeting can be more precise
– Context marketing
– Pointcasting
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-24
Sales promotion
= Promotion activities (other than advertising, publicity and
personal selling) that stimulate interest, trial or purchase
• May be focused at
– channel members
– final customers or users
– employees
• Skill may be difficult to develop inside the company
– A promotion activity is often designed and used only once
• Sales promotion spending is increasing and exceeds
advertising spending
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-25
Table 15.4 Examples of sales
promotion activities
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-26
Figure 15.3 Some possible effects of a
sales promotion on sales
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-27
Sponsorship
= An investment in cash or kind (in an event, sport, art,
person or idea) in exchange for access to the commercial
potential of that event, sport, art, person or idea
• Not a new concept
– traced back to ancient Rome and gladiatorial games
• Sport sponsorship is by far the most intensive form
• Sponsors
– A wide range of possible objectives
– A general lack of rigorous evaluation
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-28
Public relations and publicity
• Public relations (PR)
– involves communicating with several interest groups—employees,
shareholders, governments and political parties, as well as customers
and the general public
– is aimed at fostering positive publicity and may be used to counter
negative publicity
• Publicity
– comprises all word-of-mouth (negative or positive) and media
coverage
– There is such a thing as negative publicity (including rumours and
myths)
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-29
Public relations and publicity
• Brands that have been negatively impacted & how PR was
used in the crisis management of the brand:
– Nike: sponsorship of Tiger Woods, Lance Armstrong & Oscar Pitorius
http://www.thedrum.com/news/2013/02/20/oscar-pistorius-droppedsponsors-nike-and-oakley
– Gasp: http://houseofturtle.net/2011/09/29/gasp-goes-viral-or-should-isay-gaspfail/
– Qantas: grounding of aircraft fleet
– Top 10 Social Media Disasters 2011
https://www.youtube.com/watch?v=hsYMFSR9CUQ
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-30
Public relations and publicity
CLASS ACTIVITY
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Read the PR Case Study and answer the questions
Research the recent horse meat PR disaster in the UK
How has McDonalds responded to this?
Why were they in a positive to use negative Pr to their
advantage?
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-31
Creating synergies
• Many tools
– There is a wide array of tools in the promotional mix
– There is an unlimited number of possible combinations
• The aim of marketers
– to create synergy
– to ensure that every promotional activity reinforces the desired image
– For example, a sponsorship program that is not advertised is unlikely
to have the same impact as one which is advertised and used for PR
and sales promotions purposes
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy
By Carolin Plewa
15-32