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McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.
LO1
TYPES OF ADVERTISEMENTS
PRODUCT ADVERTISEMENTS

Advertising

Product Advertisements
• Pioneering
(or Informational)
• Reminder
• Competitive
(or Persuasive)
• Reinforcement
• Comparative
19-2
LO1
TYPES OF ADVERTISEMENTS
INSTITUTIONAL ADVERTISEMENTS

Institutional Advertisements
• Advocacy
• Pioneering Institutional
• Competitive Institutional
• Reminder Institutional
19-3
LO2
DEVELOPING THE
ADVERTISING PROGRAM

Identifying the
Target Audience

Specifying the
Advertising Objectives

Setting the
Advertising Budget
19-4
LO2
DEVELOPING THE
ADVERTISING PROGRAM
DESIGNING THE ADVERTISEMENT

Message Content
• Informational
Element
• Persuasive
Element

Types of Appeals
• Fear Appeals
• Sex Appeals
• Humorous Appeals
19-5
LO2
DEVELOPING THE
ADVERTISING PROGRAM
DESIGNING THE ADVERTISEMENT

Creating the Actual Message
• Celebrity Spokespeople
• Ideas and Artwork
• Cost
19-6
LO2
DEVELOPING THE
ADVERTISING PROGRAM
SELECTING THE RIGHT MEDIA

Advertising Media

Media Planning Goals
• Maximize Exposure
• Minimize Costs
19-7
LO2
DEVELOPING THE
ADVERTISING PROGRAM
SELECTING THE RIGHT MEDIA

Basic Terms
• Reach
• Rating
• Frequency
• Gross Rating Points (GRPs)
• Cost per Thousand (CPM)
= Reach × Frequency
19-8
FIGURE 19-3 Advertisers must consider the
advantages and disadvantages of the many
media alternatives
19-9
LO3
DEVELOPING THE
ADVERTISING PROGRAM
SCHEDULING THE ADVERTISING

Factors to Consider
• Buyer Turnover
• Purchase Frequency
• Forgetting Rate
19-10
LO3
DEVELOPING THE
ADVERTISING PROGRAM
SCHEDULING THE ADVERTISING

Approaches
• Continuous (Steady) Schedule
• Flighting (Intermittent) Schedule
• Pulse (Burst) Schedule
19-11
LO3
EXECUTING THE
ADVERTISING PROGRAM
PRETESTING THE ADVERTISING

Pretests
• Portfolio Tests
• Jury Tests
• Theater Tests
19-12
FIGURE 19-5 Alternative structures of
advertising agencies used to carry out the
advertising program
19-13
FIGURE 19-6 Sales promotions can be
used to achieve many objectives
19-14
LO4
SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION

Consumer-Oriented Sales Promotion

Coupons
19-15
SALES PROMOTION
LO4
CONSUMER-ORIENTED SALES PROMOTION

Deals
19-16
LO4
SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION

Premiums
• Self-Liquidating
19-17
LO4
SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION

Contests
19-18
LO4
SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION

Sweepstakes
• Value-Based
• Experience-Based
19-19
LO4
SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION

Samples
19-20
LO4
SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION

Loyalty Programs
19-21
LO4
SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION

Point-of-Purchase Displays
19-22
LO4
SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION

Rebates
19-23
LO4
SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION

Product Placement
19-24
LO4
SALES PROMOTION
TRADE-ORIENTED SALES PROMOTION

Trade-Oriented Sales Promotion

Allowances and Discounts
• Merchandise Allowance
• Case Allowance
 Free Goods
• Finance Allowance
 Floor Stock Protection
 Freight Allowance
19-25
LO4
SALES PROMOTION
TRADE-ORIENTED SALES PROMOTION

Cooperative Advertising

Training of Distributors’ Salesforces
19-26