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46 Cards in this Set
- Front
- Back
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Product Advertisements (3) |
3 forms: 1. Pioneering (informational) 2. Competitive (persuasive)- includes comparative advertising which shows one brand's strength rather than that of competitors 3. Reminder- reinforce previous knowledge of a product. includes reinforcement which is used to assure customers they made the right choice |
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Institutional Advertisements |
Objective: to build goodwill or an image for an organization rather than promote a specific good or service |
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Institutional Advertisements (4) |
1. Advocacy (states position on issues like protecting the planet. Also includes when an organization makes a request. Ex. red cross for blood donations) 2. Pioneering institutional (what the company is, what it can do, where it is located) 3. Competitive institutional advertisements (promote the advantages of one product class over another. Ex. got milk? promotes milk over other beverages) 4. Reminder Institutional Advertisements (bring the company's name to the attention of the target market again) |
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Developing the Advertising program |
Identifying the target audience specifying advertising objectives setting the advertising budget Designing the advertisement Selecting the right media Different media alternatives Scheduling the advertising |
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Specifying Advertising Objectives |
Advertising with a focus on awareness would be better matched with a magazine than a directory like yellow pages.
important to know consumers and match them with the type of advertising (humor, facts, etc.) |
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Designing the advertisement: Message Content |
Message content: most ads have informational and persuasive elements. Common advertising appeals include: fear, sex, and humor
Fear: must be are that the appeal is strong enough to get audience's attention and concern but not so strong that it will lead them to tune out the message
Sex: does not always lead to changes in recall, recognition, or purchase intent. Is most effective when there is a strong fit between the use of sex appeal and the image/positioning of the brand
Humorous: imply that the product is more fun than competitors. humor wears out quickly, losing interest of consumers. gets lost in translation. |
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Designing the Advertisement: Creating the actual message |
spokesperson (problem: changing image) translating the copywriter's ideas into an actual advertisement actors are expensive high cost of campaigns |
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Selecting the right media |
Where to place its advertisements. Alternatives are the Advertising media: the means by which the message is communicated to the target audience. |
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Selecting the right media: Choosing a medium and a vehicle within that medium |
usually a mix of media form and vehicles maximize exposure and minimize costs |
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Basic Medium/Media terms |
reach: the number of different people or households exposed to an advertisement
rating: the percentage of households in a market that are tuned to a particular tv show or radio station
ads try to get most reach at lowest cost
frequency: the average number of times a person in the target audience is exposed to a message or advertisement |
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Basic Media Terms: Gross Rating Points (GRPs) |
when reach is multiplied by frequency |
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Basic Media Terms: Cost per thousand (CPM) |
refers to the cost of reaching 1,000 individuals or households with the advertising message in a given medium |
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Media Alternatives: Television |
Valuable bec it communicated with sight, sound, and motion. TV reaches more than 96 percent of all households Major downfall: cost of TV Another problem: wasted coverage- having people outside the market see the ad. this can be reduces through specialized cable and tv Placing an ad after tv program that has to do with product is also a good idea
Infomercials: they are program length ads that take an education approach to communication with customers. Both informative and entertaining and not too expensive
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Media Alternatives: Radio |
Advantage: Segmented medium. family life network, for example has a very specific listener Disadvantage: limited use for products that must be seen Disadvantage: ease that consumers can tune out and switch stations |
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Media Alternatives: Magazines |
Very specialized medium. Advantage: the readers are fairly segmented. Disadvantage: cost of advertising in national magazines. Infrequency. Can be difficult to translate consumer interests into magazine theme |
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Media Alternatives: Newspapers |
Important local medium with excellent reach potential. Daily publication allows ads to focus on specific current events like a 24 hour sale
local retailers often use newspapers as ads
newspapers are rarely saved so generally limit ads that call for an immediate reponse
disadvantage: not the same color quality
growth in online newspapers |
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media alternatives: yellow pages |
Comparable to outdoor advertising in terms of expenditures. Consumers turn to print yellow pages often. It's a directional medium because they direct consumers to where purchases can be made after other media have created awareness and demand
Disadvantages: proliferation of directories. Relative to other ad options, limited accountability and ROI metrics. Public concern over environmental impact of directories
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Media Alternatives: Internet |
relatively new medium. smiler to print advertising visual message. It has additional advantages because of audio and video capabilities. can provide enternaainment
Rich Media: interactive ads with drop down menus, built-in games, search engines
opportunity to reach younger consumers
concern over "banner blindness" because declining rate of clicks
classified ads like craigslist and video ads "going viral"
disadvantage: relatively new, formats still evolving
makes it difficult to run national online campaigns across multiple sites. - difficult to measure impact
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Media Alternatives: Outdoor |
Very effective way to remind consumers about your product. Most common: billboards. Billboards are a good for reach and frequency at a relatively low cost but it has no opportunity for length and depends on traffic
Transit Advertising: medium that includes messages on the interior and exterior of buses, subways, taxis, etc. selectivity is available: choose neighborhoods. Bad: not conducive to reading
Conditional Content: based on current events weather, business, sports. Radio stations can display the title of the song
environmental concerns |
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Media alternative: other media |
as media becomes more expensive and cluttered, advertisers have been interested in nontraditional advertising called out of home advertising or PLACE BASED MEDIA |
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Scheduling the advertising (3 factors) |
things to consider: 1. buyer turnover: how often new buyers enter the market to buy the product. the higher the turnover, the more advertising is required 2. purchase frequency: the more frequently the product is purchased, the less repetition is required 3. forgetting rate: the speed at which buyers forget the brand if advertising is not seen
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Scheduling the advertising (3 approaches) |
1. Continuous (steady) schedule: when seasonal factors are unimportant, ads run at a continuous rate throughout the year 2. Flighting (intermittent) schedule: periods of ads scheduled between periods of no advertising to reflect seasonal demand 3. Pulse (burst) schedule: a flighting schedule is combines with a continuous schedule because of increases in demand or intro of a new product |
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Executing the Advertising Program: Pretesting |
to determine whether the advertisement communicates the intended message, pretests are conducted before the ad is placed in any medium:
- portfolio tests: used to test copy alternatives. the test ad placed in a portfolio with other ads and stories and consumers are asked of their impressions on evaluative scales from very informative to not very informative
- jury tests: show the ad copy to a panel of consumers are have them rate how they liked it, how much it drew their attention, etc. not hidden within other ads
- theater tests: most sophisticated. consumers are invited to view show or movie where test commercial is also shown. viewers register their feelings about the ads on electronic devices during the viewing or a questionnaire after |
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Carrying out the ad program |
3 types of agencies: 1. full-service agency- does research, selects media, develops copy and produces artwork; also coordinates integrated campaigns with all marketing efforts 2. limited service (specialty) agency: specializes in one aspect of creative process; usually provides creative production work, buys previously unpurchased media space 3. in-house agency: provides a range of services, depending on company needs 3. in-house agency |
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Assessing the advertising program: post testing |
post tests after it has been shown to assess whether it's been effective. five approaches |
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Post testing: aided recall |
after being shown an ad, respondents are asked whether their previous exposure to it was through reading, viewing or listening
Starch test: uses aided recall to determine the percentage of those who 1. remember seeing a specified ad (noted) 2. saw or read any part of the ad identifying the product or brand (seen-associated) 3. read any part of the ad's copy (read some) and 4. read at least half of the ad (read most). Elements of the ad are then tagged with the result |
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Post testing: Unaided recall |
involves asking respondents: what ads do you remember seeing yesterday to see what they saw or heard without a prompt |
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post testing: attitude tests |
involve asking respondents questions to measure changes in attitudes after ad campaign. Ex: might ask if they feel more favorable towards the product. |
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post testing: inquiry tests |
inquiry test involves ordering additional product info, product samples, or premiums to an ad's readers or viewers. ads generating the most inquiries are presumed to be most effective |
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post testing: sales tests |
involves studies such as controlled experiments (yang radio ads in one market and newspaper ads in another and comparing results) and consumer purchase tests (measuring retail sales from ad campaign). the most sophisticated experimental allow a manufacturer, distributor, or ad agency to manipulate an ad variable (like a schedule or a copy) through cable systems and observe sales effects with data collected from checkout scanners in supermarkets |
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Sales Promotion: coupons |
Objectives: stimulate demand Advantage: encourage retailer support disadvantage: consumers delay purchases |
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Sales promotion: Deals |
Objectives: Increase trial, retaliate against competitor's actions Disadvantages: consumers delay purchases, reduce perceived product value |
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Sales promotion: premiums |
- promotional tool that offers free or significant savings over retail price. ex. mcdonald's offering free toys with meals Objective: build goodwill pro: consumers like free or reduced-price merchandise cons: consumers buy for premium, not product |
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Sales promotion: contests |
objective: increase consumer purchases, build business inventory advantages: encourage consumer involvement with products cons: require creative or analytical thinking |
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sales promotion: sweepstakes |
objective: encourage present customers to buy more; minimize brand switching pros: get customer to use product and store more often cons: sales drop after sweepstakes |
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sales promotion: samples |
objective: encourage mew-product trial advantage: low risk for consumer cons: high cost for company |
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sales promotion: loyalty programs |
objectives: encourage repeat purchases pros: help create loyality cons: high cost for company |
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sales promotion: point-of purchase displays |
objectives: increase product trial, provide in-store support for other promotions pros: provide good product visibility cons: hard to get retailer to allocate high-traffic space |
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sales promotion: rebates |
objectives: encourage customers to purchase, stop sales decline pros: effective at stimulating demand cons: easily copied, steal sales from future reduce perceived product value |
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Sales promotion: product placements |
objective: introduce new products, demonstrate product se pro: positive message in a non commercial setting cons: little control over presentation of the product |
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trade oriented sales promotions |
trade promotions are sales tools used to support a company's advertising and personal selling, directed to wholesalers, retailers, or distributors.
three common approaches 1. allowances and discounts 2. cooperative advertising 3. training of distributors salesforce |
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trade promotions: allowances and discounts |
Objective: maintaining of increasing inventory levels in the channel of distribution Pro: Cons: overuse of price reductions can lead to retailers changing ordering patters in expectation of offerings
three common approaches 1. merchandise allowance: reimbursing a retailer for extra in-store support or special featuring of product 2. case allowance: a discount on each case ordered during a certain time period. Ex. 1 case free for every ten ordered 3. finance allowance: involved paying retailers for financial cost or loss associated with consumer sales promotion - floor stock protection program: case allowance price for products in warehouse - freight allowance: compensate retailers that transport orders |
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trade promotions: cooperative advertising |
programs that the manufacturer pays a percentage of the retailer's local advertising expense for advertising the manufacturer's products |
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trade promotions: training of distributor's sales forces |
because resellers salesforce often under strained, they can often produced adds, meetings, etc. to motivate and help sell |
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PR: Publicity tools |
several methods of obtaining non personal presentation of an organization, product or service without direct cost. most companies use NEWS RELEASE: announcements regarding changes in the company- they inform newspapers, radios and other mediums NEWS CONFERNCY: representative of media are invited to an informational meeting with materials sent PUBLIC SERVICE ANNOUNCEMENTS: commonly used by nonprofits. free space or time donated by the media |
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Increasing the value of promotion |
1. emphasizing long-term relationships: promotion can lead to brand and store loyalty by improving companies ability to target individual preferences and engaging customers in valuable and engaging communication
2. increasing self-regulation: sometimes consumers have been misled by promotions- targeting certain groups have ethical probs. as a result: self-regulation. imposing standards that reflect the company's values. through this, can 1. facilitate the development of new promo methods 2. minimize regulatory constraints and restrictions 3. help consumers gain confidence in communication methods |
