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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