Download Learning Outcomes

Identify the major types of
advertising
Describe media evaluation and
selection techniques
Review the role of public relations
in the promotional mix
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
1
 What
are the effects of advertising on
market share
 What
 What
are the effects on consumers
types of creative decisions must
be made in order to develop an
effective advertising campaign

In recent years, 30
companies spent over $1
billion each

The advertising and
marketing services employ
approximately 750,000
people.

Ad budgets of some firms are
almost $4 billion annually.
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
3
Top Ten Leaders by U.S.
Advertising Spending
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
4
 The average U.S. citizen is exposed to
hundreds of ads each day.
 Advertising may change a consumer’s
negative attitude toward a product, or
reinforce a positive attitude.
 Advertising can affect consumer ranking
of a brand’s attributes.
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
5
Institutional Advertising- Enhances
a company’s image rather than
promotes a particular product.
Product Advertising- Touts the
benefits of a specific good or
service.
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
6
Institutional
Advertising
Corporate identity
Advocacy
advertising
Pioneering
Product
Advertising
Competitive
Comparative
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
7
Pioneering
 Stimulates primary demand for
new product or category
 Used in the PLC introductory stage
Competitive
 Influences demand for brand in the
growth phase of the PLC
 Often uses emotional appeal
Comparative
 Compares two or more competing
brands’ product attributes
 Used if growth is sluggish, or if
competition is strong
Online
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
9
LO2
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
10
Advertising Campaign - A series
of related advertisements
focusing on a common theme,
slogan, and set of
advertising appeals.
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
11
Identify
product benefits
Develop and evaluate
advertising appeals
Execute
the message
Evaluate the
campaign’s effectiveness
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
12

“Sell the Sizzle, not the Steak”

Sell product’s benefits, not its attributes

A benefit should answer
“What’s in it for me?”

Ask “So?” to determine
if it is a benefit
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
13
Attribute
- So?
Benefit
“SoBe Life Water has reformulated
five delicious, low-calorie flavors,
each infused with essential vitamins
and healthy herbal ingredients.”
“SoBe Life Water is not only an
enhanced water; it is a lifestyle unto
itself. It provides consumers the
healthiest, most fun and refreshing
products, delivering the incredibly
positive benefits of hydration.”
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
14
Profit
Product saves, makes, or protects money
Health
Appeals to body-conscious or health seekers
Love or romance
Used in selling cosmetics and perfumes
Fear
Social embarrassment, old age, losing health
Admiration
Reason for use of celebrity spokespeople
Convenience
Used for fast foods and microwave foods
Fun and pleasure
Key to advertising vacations, beer, parks
Vanity and egotism
Environmental
Consciousness
Used for expensive or conspicuous items
Centers around environmental protection
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
15
A desirable, exclusive, and
believable advertising appeal
selected as the theme
for a campaign.
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
16
Scientific
Musical
Slice-ofLife
Spokesperson/
Testimonial
Demonstration
Mood or
Image
Lifestyle
Real/
Animated
Product
Symbols
Fantasy
Humorous
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
17
LO3
Set
advertising
objectives
Evaluating
results helps
marketers
adjust objectives
for future
campaigns
Identify
benefits
Develop
appeal
Execute
message
Evaluate
campaign
results
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
18
Newspapers
Magazines
Radio
Television
Outdoor Media
Yellow Pages
Internet
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
19

In 2006, Microsoft acquired Massive
inc., a start-up that places ads in
video games.

Ads are inserted into the
game environment.

Video games could become
a large new medium for
advertising.
SOURCE: Robert A. Guth and Nick Wingfield,
“Microsoft’s ‘Massive’ Move into Game Ads,”
Wall Street Journal, April 26,2006, B1.
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
20

Newest advertising media.

Useful for reaching youth market.

Over 4 billion cell phone users in
the world.

In 2008 cell phone ad sales
reached over
$1.6 billion in U.S. – nearly $4.4
billion worldwide.
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
21
FIGURE 16-1 Television, direct mail, and newspapers account for
more than 60% of all advertising expenditures (in $ millions)
16-22

Media Mix – Combination of media to be used
for a promotional campaign

Cost per contact – The cost of reaching one
member of the target market

Reach – number of target consumers exposed
to a commercial at least once during a specific
period, usually four weeks

Frequency – number of times an individual is
exposed to a given message during a specific
period
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
23
LO2
USING MARKETING DASHBOARDS
What is the Best Way to Reach 1,000 Customers?
Cost per Thousand (CPM) Impressions
CPM ($) =
Advertising Cost ($)
 Impressions Generated (#) 


1,000
16-24
Continuous
Media Schedule
Advertising is run steadily
throughout the period.
Flighted
Media Schedule
Advertising is run heavily every
other month or every two weeks.
Pulsing
Media Schedule
Advertising combines continuous
scheduling with flighting.
Seasonal
Media Schedule
Advertising is run only when the
product is likely to be used.
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
25
LO4
Type:
Newspaper
Magazine
Radio
Television
Outdoor
Internet
Alternative
Scheduling:
Considerations:
Mix
Cost per contact
person?
Reach
Frequency
Audience selectivity
audience?
How much of each?
How much per
How many people?
How often?
How targeted is
continuous
flighted
pulsing
seasonal
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
Winter
Spring
Summer
Fall
26
The elements in the
promotional mix that:
-evaluate public attitudes,
-identify issues of public concern,
-execute programs to gain
public acceptance.
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
27
LO5
Copyright 2010 by Cengage Learning Inc. All Rights Reserved
28
Alternative structures of advertising
agencies used to carry out the advertising
program
FIGURE 16-A
16-29