Download No Slide Title

Advertising
Prepared for Marketing 106
Slide 2
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 3
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
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 4
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
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 5
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
Prepared for Marketing 106
113 048.4
1993 stats
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Prepared for Marketing 106
Slide 6
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 7
Advertising Objectives are a
Strategy Decision
• Every ad should have clearly defined
objectives
• these objectives guide the people who
create the ads
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 8
Product Advertising
Nonpersonal selling of a particular
good or service.
- TV ads
- billboards
- junk mail
Page 518
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 9
Institutional Advertising
Also called Advocacy advertising
See slide # 16
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 10
Pioneering Advertising, also called Informative
“… tries to develop primary demand…”
Done in the early stage of the Product Life Cycle.
Competitive Advertising
Direct
Indirect
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 11
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
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 12
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
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 13
Comparative Advertising
Some countries do not allow Comparative
Advertising.
Other countries allow it,,, but,, you have to
prove any statements you make
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 14
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.
Page 521
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 15
Relationship between Advertising and the Product Life Cycle
Competitive
Comparative
Pioneering
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 16
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
Prepared for Marketing 106
Page 521
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 17
Institutional Advertising
Used often by Japanese conglomerates
that have many types of products
eg.
Hitachi
SONY
Mitsubishi
Panasonic (Matsushita Electronics) Page 521
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 18
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
Advertising
Slide 19
Page 523 8th edition
Page 444 9th edition
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Prepared for Marketing 106
Slide 20
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 21
Before we talk about
choosing the best way
to advertise, we first
have to discuss our
Position
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 22
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
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 23
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
Prepared
for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 24
Media Selection
• Newspapers
• Magazines
• Television
• Radio
• Direct Mail
• Outdoor
Prepared for Marketing 106
? - in which
category is the
most money
spent
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 25
Media Selection
• Newspapers - largest share of advertising, 26%
• Magazines - 12%
• Television - 2nd major category, 14%
• Radio - 7%
• Direct Mail
• Outdoor, billboards etc. - 6%
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
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
Advertising
Slide 28
Page 528
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Prepared for Marketing 106
Slide 29
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 30
To produce, then additional money to get “air” time
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 31
Planning The Best Message
What should an ad accomplish
1. Gain attention and interest
2. Inform and persuade
3. Lead to the person buying
Page531
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 32
Planning The Best Message
“Copy Thrust”
the words you say to get the attention
1. Copy - the text
2. Thrust - the intention, direction
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 33
Planning The Best Message
“A I D A”
A - Attention
I - Interest
D - Desire
A - Action
Page531
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 34
Direct Response Ads
• Call 1-800-………….
• See our web site at
WWW.STUFF.COM
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 35
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
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 36
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.
Prepared for Marketing 106
Page 387
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 37
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.
Page 535
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Celebrity Marketing
Prepared for Marketing 106
Slide 38
Having
celebrities lend
their name and
influence to the
promotion of a
product.
Copyright, Professor W.T.G. Richardson, Seneca College
Advertising
Slide 39
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.
Prepared for Marketing 106
Copyright, Professor W.T.G. Richardson, Seneca College