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© McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Learning Objectives LEARNING OBJECTIVES How do firms plan advertising campaigns? Why do firms advertise and engage in public relations What appeals do advertisers use? How do firms determine which media to use? What legal and ethical issues are of concern to advertisers? Why do firms integrate PR into IMC? How do sales promotions supplement an IMC strategy? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-2 The Gap What is The Gap’s current strategy? How does it differ from previous campaigns? How is it similar? Gap Commercial © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-3 Steps in Planning an Ad Campaign Advertising Age Website © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-4 Set Advertising Objectives Pull strategy © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Push strategy 18-5 Advertising Objectives Inform Persuade © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Remind 18-6 Designing an ad for a delicate topic for parents and kids Designing an ad for a delicate topic for parents and kids © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-7 Museum of Modern Art, NY How does this ad inform, persuade, and remind? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-8 Informative Advertising Communicates to create and build brand awareness Retailers aim to push the consumer through the buying cycle to final purchase Often used to inform customers about upcoming sales events or arrival of new merchandise © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-9 Persuasive Advertising Generally occurs in the growth and early maturity stages of the Product Life Cycle when competition is most intense May be used to reposition an established brand in the later stage of the Product Life Cycle © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-10 Reminder Advertising © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Communication used to remind or prompt repurchases Occurs after the products have gained market acceptance 18-11 Focus of Advertisements Product-focused advertisements © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Institutional advertisements 18-12 Primary vs. Selective Demand © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-13 Social Marketing Public Service Advertising (PSA) Under Federal Communication Commission rules, broadcasters must devote a specific amount of free airtime to PSAs © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-14 The AdCouncil © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-15 The TRUTH Takes Hold How to get young consumers to quit smoking? Part of the tobacco settlement: “raising generation that would be smoke free” TRUTH uses a hard-hitting media campaign In your face ads TRUTH Campaign Commercial © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-16 Determining Advertising Budget Considerations: Role that advertising plays in their attempt to meet their overall promotional objectives Expenditures vary over the course of the Product Life Cycle Nature of the market and the product influence the size of the budget © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-17 Convey the Message Unique selling proposition (USP) Verizon…….It’s the Network Nokia…..Connecting People © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-18 Creative Advertisements © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-19 The Appeal Informational appeal Emotional appeal © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-20 Symbols Help to Convey Messages © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-21 Evaluate and Select Media Media planning Media mix Media buy © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-22 Mass and Niche Media Mass media reach large anonymous audience Niche media reach a smaller more targeted audience © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-23 Choosing the Right Medium © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-24 Viral Marketing Campaign © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-25 Determine the Advertising Schedule Continuous Pulsing Flighting © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-26 Create Advertisements Creativity plays a major role in the execution stage The type of medium determines the execution style Creativity should not overshadow the message Ads © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin The execution style must match the medium and objectives 18-27 What appeal is being used in this advertisement? Is this ad effective in delivering the selling message? Assess Impact Pretesting Tracking Protesting © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-29 Check Yourself 1. What are the steps involved in planning an ad campaign? 2. What is the difference between informational, persuasive and reminder advertising? 3. What are the pros and cons of the different media types? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-30 Regulatory and Ethical Issues in Advertising © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-31 Puffery © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-32 Public Relations TOMS Shoes Website © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-33 Check Yourself 1. Why do companies utilize public relations as part of their DML strategy? 2. What are the elements of a public relations toolkit? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-34 Sales Promotions © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Can be targeted at either the end user consumers or channel members Can be used in either push or pull strategies 18-35 Types of Sales Promotion © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-36 Sales Promotion What form of sales promotion is represented in this ad? Do you feel it is an effective promotion? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-37 Using Sales Promotion Tools Cross-promoting © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-38 Cross Promotion © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-39 Evaluated Sales Promotions using Marketing Metrics Realized margin Cost of additional inventory Potential increase in sales Long-term impact Potential loss from switches from more profitable items Additional sales by customers © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-40 Check Yourself 1. What are various forms of sales promotions? 2. What factors should a firm consider when evaluating a sales promotion? © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-41 Glossary An advertising plan is a subsection of the firm’s overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the advertising campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successful. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-42 Glossary A continuous advertising schedule runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and that require a steady level of persuasive and/or reminder advertising. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-43 Glossary A flighting advertising schedule is implemented in spurts, with periods of heavy advertising followed by periods of no advertising. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-44 Glossary Institutional advertisements inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-45 Glossary Media buy is the actual purchase of airtime or print pages. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-46 Glossary The media mix is the combination of the media used and the frequency of advertising in each medium. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-47 Glossary Media planning is the process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-48 Glossary Product-focused advertisements focus on informing, persuading, or reminding customers about a specific product or service. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-49 Glossary Public service advertising (PSA) focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-50 Glossary A pull strategy is a strategy in which the goal is to get consumers to pull the product into the supply chain by demanding it. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-51 Glossary A pulsing advertising schedule combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-52 Glossary A push strategy is designed to increase demand by focusing on wholesalers, distributors, or sales people. Return to slide © McGraw-Hill Companies, Inc., McGraw-Hill/Irwin 18-53