© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin Slide 19-6TYPES OF ADVERTISEMENTS • Paid, non-personal communication through various media by organizations and individuals who a
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ADVERTISING,
SALES PROMOTION, AND PUBLIC RELATIONS
C HAPTER
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AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
1 Explain the differences between
product advertising and institutional
advertising and the variations within
each type.
2 Describe the steps used to develop,
execute, and evaluate an advertising
program.
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AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
3 Explain the advantages and
disadvantages to alternative advertising
media.
4 Discuss the strengths and weaknesses of
consumer-oriented and trade-oriented
sales promotions.
5 Recognize public relations as an
important form of communication.
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TYPES OF ADVERTISEMENTS
• Paid, non-personal communication
through various media by
organizations and individuals who
are in some way identified in the
advertising message
• Total advertising volume exceeds
$230B yearly
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TYPES OF ADVERTISEMENTS
• Product Advertisements –
focus on selling a good or service and which
take three forms:
2 Competitive (or Persuasive)
Comparative (relative to competitors)
1 Pioneering (or Informational)
3 Reminder (reinforce previous knowledge)
Reinforcement (made the right choice)
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TYPES OF ADVERTISEMENTS
Institutional Advertisements
designed to build goodwill or an image for
an organization rather than promote a
specific good or service
– Often used to support the public relations plan
or counter adverse publicity
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TYPES OF ADVERTISEMENTS
• Institutional Advertisements
Pioneering Institutional – announce what a
company is , what it can do, or where it is
located
Advocacy – state the position of a company
on an issue
Competitive Institutional – promote
advantages of one product class over another
and used in markets where different product
classes compete for same buyers
Reminder Institutional – simply bring
company’s name to attention of target market
again
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Slid
e 19- 27
DEVELOPING THE ADVERTISING PROGRAM
A Identifying the Target Audience
C Setting the Advertising Budget
B Specifying Advertising Objectives
• The promotion decision process can be
applied to each of the promotional elements:
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FIGURE 19-1 Super Bowl, super dollars,
super audience
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DEVELOPING THE ADVERTISING PROGRAM
• Designing the Advertisement
– Message focuses on key benefits of
product that are important to prospective buyers
– Message depends on general form or
appeal used in ad and actual words included in the ad
1 Message Content
2 Creating the Actual Message
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DEVELOPING THE ADVERTISING PROGRAM
– Most advertising messages are made up
of both informational and persuasional messages
– Information – product name, benefits,
features, and price – presented in a way
to attract attention and encourage purchase
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DEVELOPING THE ADVERTISING PROGRAM
A Fear Appeals
– Consumers can avoid some negative
experience through the purchase and use
of a product or service, a change in behavior, or a reduction in the use of a product
– Advertisers must be sure that appeal is
strong enough to get consumers’
attention and concern but not so strong that it will lead them to tune out the
message
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DEVELOPING THE ADVERTISING PROGRAM
1 Message Content, cont.
B Sex Appeals
– Suggests to consumers that product will
increase the attractiveness of the user
– Successful at gaining attention of consumers but
have little impact on how consumers think, feel,
or act, and may even distract them from the ad’s purpose
– Many advertisers have modified content of their
ads based on a recent Super Bowl controversy
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DEVELOPING THE ADVERTISING PROGRAM
C Humorous Appeals
– Imply either directly or more subtly that
the product is more fun or exciting than competitor's offerings
– Is widespread and found in many product
categories
– Humor tends to wear out quickly, boring
the consumer
– Effectiveness varies across cultures if
used in a global campaign
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DEVELOPING THE ADVERTISING PROGRAM
– Many firms use athletes, movie and TV
stars, musicians, and other celebrities to talk to consumers through their ads
– Advertisers believe that the ads are more
likely to influence sales
– Potential shortcoming is spokesperson’s
image may change
– Many companies now probe potential
endorsers’ background
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ETHICS AND SOCIAL RESPONSIBILITY ALERT
Who Decides What Is
“Appropriate” Advertising?
Slide 19-35
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FIGURE 19-A Top 15 advertising slogans of
the 20th century
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FIGURE 19-B Top 10 advertising icons of
the 20th century
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FIGURE 19-2 U.S advertising expenditures,
by category (in millions of dollars)
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DEVELOPING THE ADVERTISING PROGRAM
Selecting the Right Media
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DEVELOPING THE ADVERTISING PROGRAM
– Advertising media – means by which the
message is communicated to target audience; includes newspapers,
magazines, radio, and TV
– Selection decision is related to target
audience, type of product, nature of message, campaign objectives, available budget, and costs of alternative media
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DEVELOPING THE ADVERTISING PROGRAM
• Selecting the Right Media
• Maximizing Exposure
Choosing a Medium and a Vehicle within That Medium – conflicting goals
• Minimizing Costs
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FIGURE 19-3 The language of the media
buyer
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DEVELOPING THE ADVERTISING PROGRAM
• Selecting the Right Media
• Frequency – average number of times a person is
exposed to advertisement
• Gross Rating Points (GRPs)
• Reach (% of total market) x Frequency
• Reach – number of different people or households
• Rating – percentage of households in a market tuned in
• Cost per Thousand (CPM) – individuals or households
• Advertising Cost($) / Impressions Generated (in 1000s)
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DEVELOPING THE ADVERTISING PROGRAM
• Different Media Alternatives
Television – sight, sound, and motion – reaches
95% of U.S homes
• Wasted Coverage – people outside the market
• Digital Video Recorders (DVRs) – “30-second skip”
• Out-of-Home TV – reaches another 20M viewers
• “Spot” Ads – 10-, 15-, 30-, or 60-second lengths
• Infomercials – educational approach
• 90 percent of all TV stations air
• 25 percent of all consumers have purchased as a result of seeing
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DEVELOPING THE ADVERTISING PROGRAM
• Different Media Alternatives
Radio – 7 times as many as TV
Magazines – more than 6,200
Newspapers -
Yellow Pages
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DEVELOPING THE ADVERTISING PROGRAM
• Different Media Alternatives
Internet
• Rich Media
• Online Advertising Options
• Permission-Based Advertising
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DEVELOPING THE ADVERTISING PROGRAM
• Different Media Alternatives
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FIGURE 19-4 Advantages and
disadvantages of major advertising media
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GLOBAL ADVERTISING
the world
to
country or for specific groups within a
country.
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DEVELOPING THE ADVERTISING PROGRAM Scheduling the Advertising
• Factors to be considered when
scheduling
enter market to buy product
product is purchased, less repetition is
required
forget brand if advertising is required
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DEVELOPING THE ADVERTISING PROGRAM Scheduling the Advertising
• Setting the schedules
seasonal factors are unimportant
demand
combined due to increases in demand,
heavy periods of promotion, or new
product introduction – superior to other
strategies
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FIGURE 19-5 Alternative structures of
advertising agencies used to carry out the
advertising program
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EVALUATING THE ADVERTISING PROGRAM
• Posttesting the Advertising
– Aided Recall – determine the percentage
of those who:
• Remember seeing the ad (noted)
• Saw or read any part of ad identifying product
or brand (seen associated)
• Report reading at least half of ad (read most)
• Elements of ad are tagged with results
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EVALUATING THE ADVERTISING PROGRAM
• Posttesting the Advertising
– Determine whether the advertisement
accomplished its intended purpose
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EVALUATING THE ADVERTISING PROGRAM
• Posttesting the Advertising
– Unaided Recall – respondents are asked
question such as, “What ads do you
remember seeing yesterday?” without any
prompting
– Attitude Tests – respondents are asked
questions to measure changes in attitudes
before and after advertising campaign
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EVALUATING THE ADVERTISING PROGRAM
• Posttesting the Advertising
– Inquiry Tests – additional product
information, samples, or premiums are
offered to ad’s readers or viewers
– Sales Tests – controlled experiments or
consumer purchase tests
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Concept Check
1 Explain the difference between
pretesting and posttesting advertising
copy.
A: Pretests are conducted before ads are placed in
any medium to determine whether the ads
communicate the intended message or select
among alternative versions Posttests are shown
to the target audience to determine whether it
accomplished its intended purpose.
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Concept Check
2 What is the difference between aided
and unaided recall posttests?
A: Aided recall involves showing an ad to
respondents who then are asked if their previous
exposure to it was through reading, viewing, or
listening Unaided recall involves asking
respondents if they remember an ad without any
prompting to determine if they saw or heard its
message.
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SALES PROMOTION
Coupons – 258 billion distributed annually
w/ 2% redemption rate
Deals – short-term price reductions
Premiums – merchandise offered free or at
significant savings over retail price
• Self-Liquidating
Contests
Sweepstakes
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SALES PROMOTION
• Trade-Oriented Sales Promotion
Allowances and Discounts
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INCREASING THE VALUE
OF PROMOTION
• Building Long-Term Relationships with
Promotion
• Self-Regulation
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Advertising
Advertising is any paid form of
nonpersonal communication about an
organization, good, service, or idea by
an identified sponsor.
Advertising is any paid form of
nonpersonal communication about an
organization, good, service, or idea by
an identified sponsor.
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Product Advertisements
Product advertisements are
advertisements that focus on selling a
good or service and which take three
forms: (1) pioneering (or informational),
(2) competitive (or persuasive), and
(3) reminder.
Product advertisements are
advertisements that focus on selling a
good or service and which take three
forms: (1) pioneering (or informational),
(2) competitive (or persuasive), and
(3) reminder.
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Institutional Advertisements
Institutional advertisements are
advertisements designed to build
goodwill or an image for an organization
rather than promote a specific good or
service.
Institutional advertisements are
advertisements designed to build
goodwill or an image for an organization
rather than promote a specific good or
service.
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Rating
A rating is the percentage of households
in a market that are tuned to a particular
TV show or radio station.
A rating is the percentage of households
in a market that are tuned to a particular
TV show or radio station.
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Frequency
Frequency is the average number of
times a person in the target audience is
exposed to a message or an
advertisement.
Frequency is the average number of
times a person in the target audience is
exposed to a message or an
advertisement.
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Gross Rating Points
Gross rating points (GRPs) is a
reference number used by advertisers
that is obtained by multiplying reach
(expressed as a percentage of the total
market) by frequency.
Gross rating points (GRPs) is a
reference number used by advertisers
that is obtained by multiplying reach
(expressed as a percentage of the total
market) by frequency.
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Cost per Thousand
Cost per thousand (CPM) is the cost of
reaching 1,000 individuals or households
with the advertising message in a given
medium (M is the Roman numeral for
1,000).
Cost per thousand (CPM) is the cost of
reaching 1,000 individuals or households
with the advertising message in a given
medium (M is the Roman numeral for
1,000).