Exam 2 Ch 16

Front 1

Types of Advertisements

Back 1

Product and Institutional

Front 2

Three types of product advertisemetns

Back 2

Pioneering (informational), Competitive (persuasive), Reminder

Front 3

 Pioneering (or informational)

Back 3

 Tell people what the product is what it can do, and where it can be found
 The objective of a pioneering advertisement is to inform the target market
 Have been found interesting, convincing, and effective

Front 4

 Competitive (or persuasive)

Back 4

 Promotes a specific brand’s features and benefits
 The objective is to persuade the target market to select the firms brand rather than that of a competitor
 Comparative advertising shows one brand’s features and strengths relative to those of competitors

Front 5

 Reminder

Back 5

 Used to reinforce previous knowledge of a product
 reinforcement ads are used to assure current users they made the right choice

Front 6

• Institutional Advertisements

Back 6

o The objective of institutional advertisements is to build goodwill or an image for an organization rather than promote a specific product or service
 Used to support the public relations plan or counter adverse publicity

Front 7

o Four alternatives forms

Back 7

Advocacy, Pioneering institutional advertisements, competitive institutional advertisements, reminder institutional advertisements

Front 8

 Advocacy

Back 8

 State the position of a company on an issue
 Make a request related to a particular action or behavior

Front 9

 Pioneering institutional advertisements

Back 9

 Used for announcements about what a company is, what it can do, or where it is located

Front 10

 Competitive institutional advertisements

Back 10

 Promote the advantages of one product class over another and are used in markets where different product classes compete for the same buyers

Front 11

 Reminder institutional advertisements

Back 11

 Bring the company’s name to the attention of the target market again

Front 12

Developing the advertising program steps

Back 12

1. Identifying target audience
2. Specifying advertising objectives
3. Setting the advertising budget
4. Designing the advertisement

Front 13

• Identifying the target audience

Back 13

o Understanding the lifestyles, attitudes, and demographics of the target market is essential.
o Placement of ads depends on the audience
o To eliminate possible bias that might result from subjective judgments about some population segments, the FCC suggests that advertising program decisions be based on market research about the target audience

Front 14

• Specifying advertising objectives

Back 14

o Helps advertisers with other choices in the promotion decision process such as selecting media and evaluating a campaign

Front 15

• Designing the advertisement

Back 15

o An advertising message usually focuses on the key benefits of the product that are important to a prospective byer in making trial and adoption decisions.

Front 16

o Message content

Back 16

 Most advertising messages are made up of both informational and persuasive elements

Front 17

 fear appeals

Back 17

suggest to the consumer that he or she can avoid 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.
• when using fear appeal, the advertiser must be sure that the appeal is strong enough to get the audience’s attention and concern but not so strong that it will lead them to tune the message.

Front 18

 sex appeals

Back 18

suggest to the audience that the product will increase the attractiveness of the user
• can be fount in almost any product category
• studies indicate that sex appeals increase attention by helping advertising stand out in today’s cluttered media environment.
• Sexual content does not always lead to changes in recall, recognition, or purchase intent.
• Most effective when there is a strong fit between the use of a sex appeal in the ad and the image and positioning of the brand.

Front 19

 humor appeals

Back 19

imply either directly or subtly that the product is more fun or exciting than competitors’ offering
• widespread in advertising and can be found in many product categories
• advertisers believe that humor improves the effectiveness of their ads , although some studies suggest that humor wears out quickly, losing interest of consumers.
• Effectiveness may vary across cultures if used in a global campaign.

Front 20

 Creating the actual message

Back 20

 Copywriters are responsible for creating the text portion of the messages in advertisements.
 Designing quality artwork, layout and production for an advertisement is costly and time consuming.

Front 21

Different Media Alternatives

Back 21

TV, Radio, Magizines, Newspapers, yellow pages, internet, outdoor

Front 22

Television

Back 22

o Communicates with sight, sound, and motion
o Network television reaches 98.9% of all households
o Major disadvantage is cost
o Shorter ads reduce costs but severely restrict the amount of information and emotion that can be conveyed.
o Likelihood of wasted coverage
 Having people outside the market for the product see the advertisement
o Infomercials are program-length advertisements that take an educational approach to communication with potential customers.

Front 23

• Radio

Back 23

o Major advantage of radio is that it is a segmented medium
o Important medium for business is college students
o Disadvantage is that it has limited use for products that must be seen
o Also listeners switching stations is a problem
o Competes for people’s attention as they d other activities

Front 24

• Magazines

Back 24

o Advantages:
 Great number of special-interest publications that appeal to narrowly defined segments
o Disadvantages:
 Cost of advertising in national magazine

Front 25

• Newspapers

Back 25

o Important local medium with excellent reach potential
o Rarely saved by the purchaser so companies are generally limited to ads that call for an immediate customer response
o National advertising campaigns rarely include this medium except in conjunction with local distributors of their products.

Front 26

• Yellow Pages

Back 26

o Directional medium because they help consumers know where purchases can be made after other media have created awareness and demand
o A disadvantage is the proliferation of directories

Front 27

• Internet

Back 27

o Offers a visual message
o Also can use radio and video capabilities of the Internet
o rich media is interactive ads that have drop down menus, built in games, or search engines to engage viewers
o disadvantages:
 difficulty of measuring impact

Front 28

• Outdoor

Back 28

o Scoreboard at sports games
o Billboards
 Visibility is good supplemental reinforcement for well-known products and is relatively low costing
o Transit advertising
 Interior and exterior of buses, subway and light-rail cars, and taxis

Front 29

o place-based media

Back 29

 messages are placed in locations that attract a specific target audience such as airports, doctors’ offices, health clubs, theaters, grocery stores, and even the bathrooms of bars, restaurants, and nightclubs.

Front 30

Three factors need to be considered in scheduling advertisements

Back 30

Buyer turnover, purchase frequency, forgetting rate

Front 31

o buyer turnover

Back 31

is how often new buyers enter the market to buy the product.
 the higher the byer turnover, the greater is the amount of advertising required

Front 32

o purchase frequency

Back 32

 the more frequently the product is purchased, the less repetition is required

Front 33

o forgetting rate

Back 33

 the speed with which buyers forget the brand if advertising is not seen

Front 34

three basic scheduling approaches

Back 34

continuous, fighting, pluse

Front 35

o continuous (steady) Schedule

Back 35

 when seasonal factors are unimportant, advertising is run at a continuous or steady schedule throughout the year

Front 36

o fighting (intermittent) schedule

Back 36

 periods of advertising are scheduled between periods of no advertising to reflect seasonal demand

Front 37

o pulse (burst) schedule

Back 37

 a fighting schedule is combined with a continuous schedule because of increases in demand, heavy periods of promotion, or introduction of a new product.

Front 38

Rebates

Back 38

• Offers the return of money based on proof of purchase
• Buyers may not take advantage for lower priced items because of the trouble of mailing in proof and receiving check
• Slippage is less likely to occur with frequent users of rebate promotions

Front 39

Product placement

Back 39

• Involves the use of brand-name product in a movie, television show, video game, or commercial for another product.
• reverse product placement brings fictional products to the market place

Front 40

Trade Oriented Sales Promotions

Back 40

• Tools used to support a company’s advertising and personal selling directed to wholesalers, retailers, or distributors

Front 41

o merchandising allowance

Back 41

 reimbursing a retailer for extra in-store support or special featuring of the brand
 not paid by performance until manufacturer sees proof of performance.

Front 42

case allowance

Back 42

a discount on each case ordered during the specific time period

Front 43

finance allowance

Back 43

involves paying retailers for financing costs or financial losses associated with consumer sales promotions.

Front 44

• Cooperative advertising

Back 44

o Encourages both better quality and greater quantity in the local advertising efforts of resellers
o Manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturers

Front 45

• Training of distributors salesforces

Back 45

o It is in the best interest of the manufacturer to help train the reseller’s salesforce
o Training activities include:
 Producing manuals and brochures to educate the reseller’s salesforce