Download Media Scheduling

Ch. 13 Advertising, Sales Promotion,
and PR
Advertising:
– Nonpersonal communication (paid for by an
identified sponsor) that uses mass media to
persuade or inform the targeted
audience
 Marketers are increasingly diverting
more money into alternative media
– Product and brand placements are growing
– “New media”
– Buzz & Guerilla
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 Two key issues in evaluating
advertising*:
– Message strategy: what the ad says and how
it says it
• Gain attention/break through the clutter
– Rational v. emotional appeals
– Other “appeals*
• Reinforce the brand name/brand message
– Media strategy: where the ad is
shown/when/how often
• Reach the intended audience
– Minimize wasted coverage
• CPM
• Etc.
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Types of Advertising
 Product advertising (services as well)–
– Message focuses on a specific good or service
– Purposes:
• To educate people about a new product and what it
does
• To emphasize a brand’s features and try to convince
the target market to choose it over other options
• To ensure that people won’t forget about a wellestablished product
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Types of Advertising: Product
 “Primary
demand”
advertising:
stimulate demand
for the product
class as a whole
(versus a specific
brand within a
product class)
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Types of Advertising
 Institutional advertising:
Promotes the activities, personality, or point
of view of an organization or company
– Corporate advertising (PR)*
•
•
•
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Corporate philosophy of doing business
Comprehensive product overview
Advocacy advertising
Great place to work/culture
– Non-profits
• Public service announcements (PSA) for non-profits
– Ad Council logo for government-funded
– Trade Associations (see also primary demand)
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Types of Advertising
 Retail and local advertising: Encourages
customers to shop at a specific store or use
a local service
– Encourages customers to shop at a specific store or
use a local service
– Ad copy discusses store hours, locations, sales, and
featured products
– (also a “good/service”) *
– Often relies on cooperative advertising
 B2B*
– Trade Advertising
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 Do-it-yourself advertising
– “Generation C” (??) Web 2.0 phenomenon:
• consumer-generated ad content on the Web
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Advertising Industry*
– Clients
• Ad managers
– Media
• Media sales reps
– Ad Agencies
• Account management
• Creative services
– art directors
– copywriters
– photographers
• Research and marketing services
• Media planning
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Ethical Issues in Advertising
 Ethical criticisms of advertising:
– Advertising is manipulative
– Advertising is deceptive and untruthful
– Advertising is offensive and in bad taste
– Advertising creates and perpetuates
stereotypes
– Advertising causes people to buy things
that they don’t really need
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Figure 13.1 - Steps to Develop an Advertising
Campaign
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Steps in Developing an Advertising
Campaign
 Step 1: Understand the target audience
– Getting inside the consumer’s head can help
marketers understand how the product fits
into users lives
– Review Ch. 7 “Customer Profile”
– Examples:* Nike, etc.
 Step 2: Establish message and budget
objectives
– Inform? Persuade? Remind?
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Steps in Developing an Advertising
Campaign
 Step 3: Create the ads
The process that turns a concept into an
advertisement—
– The “big idea”
– USP
 Creative strategy: What the ad says and how
it says it
– Advertising appeal: The central idea of the
advertisement
 Two critical concerns:
– Does it grab attention?
– Does it reinforce the brand name/message?
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Types of Advertising Appeals
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Reasons why—the unique selling proposition (USP)
Comparative advertising
Demonstration
Expert/Celebrity spokespeople
Customer Testimonial
Slice of life
Lifestyle
Fear appeals
Sex appeals
Humorous appeals
Slogans, jingles, and music
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Steps in Developing an Advertising
Campaign
 Step 4: Pretest what the ads will say
Research that seeks to minimize mistakes by
getting consumer reactions to ad messages
before they appear in the media
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Steps in Developing an Advertising
Campaign
 Step 5: Choose the media type(s) and media
schedule
– Media planning:
The process of developing media objectives,
strategies, and tactics
 Deciding where/when/how often to place the
ads so the target market will see them
 Which media and vehicles will be most
effective in attaining campaign objectives
 Traditional media
 The Internet
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See Table 13-1, p.
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Where to Say It:
Traditional Media
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Television
Radio
Newspapers
Magazines
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Where to Say It:
Internet Advertising
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Banners & Buttons
Pop-up ads
Search engine and directory listings
E-mail
– Spamming
– Permission marketing
 Mobile marketing (Ch. 14)
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Where to Say It:
Indirect Forms of Advertising
 Directories
 Branded
entertainment
 Out-of-home media
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 Advergaming
 Place-based media
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Factors Affecting Media Scheduling
 Match between the target market
profile and the people reached by
different media vehicles
– Venn diagrams
– Minimize wasted coverage
 Advertising patterns of competitors
 Capability of medium to convey
desired information
 Compatibility of product with editorial
content
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Media Scheduling
 Cost per Thousand (CPM) –
– compares the relative cost efficiency of different
media vehicles
– reflects the cost to deliver a message to 1000
people
– ($ cost of ad/# of people reached)*1000
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Media Scheduling: When to Say It
 Media schedule:
– Specifies exact media to use and when to
use it
 Advertising exposure:
– Defines degree to which the target market will
see an ad message in specific vehicles
 Impressions:
– Measures number of people exposed to a
message in one or more vehicles
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Media Scheduling: When to Say It
 Reach:
– Measures percentage of target market
exposed to media vehicle
 Frequency:
– Measures average number of times a person
in the target group will be exposed to the
message
 Gross rating points (GRPs)
– Reach multiplied by frequency
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Media Scheduling:
How Often to Say It
 Typical advertising patterns:
– Continuous schedule:
Steady stream of advertising throughout year
– Pulsing schedule:
Varies the amount of advertising based on
when the product is likely to be demanded
– Flighting schedule:
Advertising in short, intense bursts, alternated
with periods in which no
advertising is done
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Figure 13.3
Media Schedule for a Video Game
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Steps in Developing an Advertising
Campaign
 Step 6: Evaluate the advertising
– Posttesting:
Research on consumers’ responses to
advertising they have seen or heard
• Unaided recall
• Aided recall
• Attitudinal measures
NutriSystem Video
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Engagement Testing
Sales Promotion
 Sales promotions:
Programs designed to build interest in
or encourage purchase of a product
during a specified period of time
– Deliver short-term sales results
– Can target end consumers, channel partners,
and/or employees
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“Trade” Promotion - Directed
Toward Channel Members
 Allowances, discounts, and deals
– Merchandising allowances
– Case allowances
– Slotting fees (p. 481)*
 Co-op advertising
 Increasing industry visibility
– Trade shows:
• introduce new products, meet potential customers, and
take orders
– Promotional products (“specialty items”*)
– Point-of-purchase (POP) materials
– Incentive programs (contests, etc.)
• push money: SPIFs*
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Consumer Promotions - Directed
Toward End Users
 Price-based consumer sales promotion
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Coupons
Price deals
Refunds and rebates
Frequency (loyalty/continuity) programs
Special/bonus packs
 Attention-getting consumer promotions
– Contests and sweepstakes
• Contests are based on skill
• Sweepstakes are based on chance
– Premiums: free gift with purchase
– Sampling
• The premiere technique for generating new product trial
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Objectives* (beyond short-term
boost in sales)
 Get consumers to try the product
 Hold/reward existing product users
– Incl. loading consumers (e.g., encouraging
stockpiling) so that they are immune to the
promotional efforts of the competition
 Supporting brand image efforts
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Concerns in Using
Sales Promotions*
 Dilutes brand equity
 Creates sales promotion “traps”
 Temporary effect is not worth the cost
to run and the low margin volume
obtained
– (margins and elasticities)
 Borrows from future sales (graph)
 Cannibalizes full-margin sales to loyal
customers
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Other Issues to Consider*
 What is being re-inforced?
– Does the offer stimulate loyalty to the brand
or loyalty to the deal?
– Does the offer reinforce the brand?
– Who does the offer reach? Pros/cons
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Public Relations
 Public relations:
Communication function that seeks to
build good relationships (“goodwill”*)
with an organization’s publics
– Publics include consumers, stockholders,
legislators, and other firm stakeholders.
– Basic rule of good PR, “Do something good,
then talk about it”
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Public Relations
 Proactive PR activities stem from a
firm’s marketing objectives
– (see next slides)
 PR is critical when a firm’s image is at
risk due to negative publicity
– PR staff is responsible for preparing
a crisis management plan
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Objectives of Public Relations
 Typical objectives include:
– Introducing new products to manufacturers
– Introducing new products to consumers
– Influencing government legislation
– Enhancing the image of a firm
– Enhancing image of a city, region, or country
– Calling attention to a firm’s involvement with
the community
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Planning a PR Campaign
 Multistep process includes:
– Situation analysis
– A statement of objectives
– Specification of publics, communicated
messages, and specific program elements
– Timetable and budget
– Discussion of program evaluation plan
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Public Relations Activities
 Press releases (various
forms): To generate
media exposure
– Publicity: Stories in the news
about a company/its products
(Unpaid communication)
Internal PR
 Investor and analyst
relations
 Lobbying
 Speech writing
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 Corporate identity:
Corporate branding,
institutional advertising
 Media relations
 Sponsorships and
CSR*
 Special events
 Advice and counsel
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Eye-Catching “Stunts”
Tylenol hired runners to run on treadmills above Times Square to
promote their sponsorship of the NY City Marathon
A fine line between buzz/guerilla marketing and PR
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