Chapter 18 provides knowledge of advertising, sales promotion, and public relations. This chapter explain the differences between product advertising and institutional advertising and the variations within each type; describe the steps used to develop, execute, and evaluate an advertising program; explain the advantages and disadvantages of alternative advertising media.
McGrawHill/Irwin Copyright © 2013 by The McGrawHill Companies, Inc. All rights reserved 18-1 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 18, YOU SHOULD BE ABLE TO: LO1 Explain the differences between product advertising and institutional advertising and the variations within each type LO2 Describe the steps used to develop, execute, and evaluate an advertising program LO3 Explain the advantages and disadvantages of alternative advertising media 18-2 LEARNING OBJECTIVES (LO) AFTER READING CHAPTER 18, YOU SHOULD BE ABLE TO: LO4 Discuss the strengths and weaknesses of consumer-oriented and tradeoriented sales promotions LO5 Recognize public relations as an important form of communication 18-3 WHERE CAN YOU WATCH TV? WHERE CAN’T YOU? Online TV (OTV) 18-4 LO1 TYPES OF ADVERTISEMENTS PRODUCT ADVERTISEMENTS Advertising Product Advertisements • Pioneering (or Informational) • Reminder • Competitive (or Persuasive) • Reinforcement • Comparative 18-5 LO1 Campbell’s, 1&1, and Red Bull What is the type and purpose of each advertisement? 18-6 LO1 Dial Soap What is the type and purpose of this advertisement? 18-7 LO1 TYPES OF ADVERTISEMENTS INSTITUTIONAL ADVERTISEMENTS Institutional Advertisements • Advocacy • Pioneering Institutional • Competitive Institutional • Reminder Institutional 18-8 LO1 Chevron and Bridgestone What is the type and purpose of each advertisement? 18-9 LO1 Got Milk? and U.S Army What is the type and purpose of each advertisement? 18-10 Rating A rating is the percentage of households in a market that are tuned to a particular TV show or radio station 18-63 Frequency Frequency is the average number of times a person in the target audience is exposed to a message or an advertisement 18-64 Gross Rating Points (GRPs) 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 18-65 Cost per Thousand (CPM) 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) 18-66 Infomercials Infomercials are program-length (30-minute) advertisements that take an educational approach to communication with potential customers 18-67 Pretests Pretests are tests conducted before an advertisement is placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisement 18-68 Full-Service Agency A full-service agency is an advertising agency that provides the most complete range of services, including market research, media selection, copy development, artwork, and production 18-69 Limited-Service Agencies Limited-service agencies are advertising agencies that specialize in one aspect of the advertising process, such as providing creative services to develop the advertising copy, buying previously unpurchased media space, or providing Internet services 18-70 In-House Agencies In-house agencies consist of the company’s own advertising staff, who may provide full services or a limited range of services 18-71 Posttests Posttests are tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose 18-72 Consumer-Oriented Sales Promotion Consumer-oriented sales promotion consists of sales tools used to support a company’s advertising and personal selling directed to ultimate consumers Also called consumer promotions 18-73 Product Placement Product placement is a consumer sales promotion tool that uses a brand-name product in a movie, television show, video game, or a commercial for another product 18-74 Trade-Oriented Sales Promotions Trade-oriented sales promotions are sales tools used to support a company’s advertising and personal selling directed to wholesalers, distributors, or retailers Also called trade promotions 18-75 Cooperative Advertising Cooperative advertising consists of advertising programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products 18-76 Publicity Tools Publicity tools are methods of obtaining nonpersonal presentation of an organization, good, or service without direct cost, such as news releases, news conferences, and public service announcements 18-77 ... Advertising Budget 18- 11 FIGURE 18- 1 The Super Bowl delivers a huge audience if you can afford the cost of placing an ad 18- 12 LO2 GOING ONLINE See Your Favorite Super Bowl Ads Again! 18- 13 LO2 DEVELOPING... • Comparative 18- 5 LO1 Campbell’s, 1&1, and Red Bull What is the type and purpose of each advertisement? 18- 6 LO1 Dial Soap What is the type and purpose of this advertisement? 18- 7 LO1 TYPES... Institutional 18- 8 LO1 Chevron and Bridgestone What is the type and purpose of each advertisement? 18- 9 LO1 Got Milk? and U.S Army What is the type and purpose of each advertisement? 18- 10 LO2 DEVELOPING