MKT Chpt 18

advertising

paid form of communication, delivered through media from an identifiable source, about an organization, product, service, or idea, dsigned to persuade the receiver to take some action, nor or in the future. legally, the source of the message mus tbe kown or knowable. advertising represents a persuasive form of communication designed to get the customer to take action

some activities that are called advertising really arepolitical advertising because its not for commercial purposesnt

word of mouth advertising,

Steps to design and carry out a successful advertising program

identify the target audience --> set advertising objectives --> determine the advertising budget --> convey the message --> evaluate and select media --> create advertisements --> assess impact

identify target audience

the succcess of an advertising program depends on how well the advertiser can identify its target audience

set advertising objectives

these objectives appear in the advertising plan: a subsection of the firm's overall marketing plan athat explicitly analyzes the marketing and advertising situation, identifies the objectives of the advertising campaign, clarifies a specific strategy for accomplishing those objecitves,and indivate how the firm can determine whether the campaign was successful

pull strategy

the goal is to get consumers to pull the product into the suply chain by demanding it

push strategies

DESIGNED TO INCREASE DEMAND BY FOCUSING ON WHOLESALERS, DISTRIBUTORS, OR SALES PEOPLE ATTEMPT TO MOTIVATE TEH SELLER TO HIGHLIGHT THE PRODUCT,RATHER THAN THE PRODUCTS OF COMPETITORS, ADN TEHREBY PUSH THE PRODUCT TO CONSUMERS

informative advertising

communicates to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase

persuasive advertising

when a product has gained a certain level of brand awareness, firms use persuasive advertising to motivate consumers to take action. generally occurs in the growth and early stages of the product life cycle

reminder advertising

communication used to remind or prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle

Focus of advertisements

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product-focused ads

focus on informing, persuading, or reminding consunmers about a specific product or service

institutional advertisements

inform, persuade, and remind consumers about issues related to places, politics, an industry, or a particular corporation

primary demand

the product category or an entire industry--ex: Got Milk ads

selective demand

demand for a specific brand, firm, or item

public service advertising

a special class of primary demand advertising--focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups. represent a form of social marketing.

social marketing

the application of marketing principles to a social issue to bring about attitudinal and behavioral change among the general public or a specific population segment

unique selling proposition (USP)

often the common theme or slogan in an advertising campaign

information appeals

help consumers make purchase decisions by offering factual information and strong arguemnt built around relevant issues that encourage consumers to evaluate the brand favorably on the basis of the key benefits it provides

emotional appeals

aims to sastisfy consumers' emotional desires rather than their utilitarian needs. they focus on feelings about the self. th key to a successful emotional appeal is the use of emotion to create a bond between the consumer and the brand. emotions most often invoked are fear, safety, humor, happiness, love (or sex), comfort, and nostalgia

Evaluate and Select Media

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media planning

the process of evaluating and selecting the media mix

media mix

the combo of the media used and the frequency of advertising in each medium--that will deliver a clear, consistent, compelling message to the intended audience

media buy

the actual purchase of airtime or print pages, generally the lartgest expense in the advertising budget, marketers must make their decisions carefully

mass media

channels include national newspapers, magazines, radio, and tv--idea for reaching large numbers of anonymous audience members

niche media channels

more focused and generally used to reach narrorwer segments, often with unique demographic characteristics or interests ex: Cosmo GIrl

viral marketing campaign

a campaign that facilitates and encourages people to pass along a marketing message. the number of people exposed to a message mimics the process of passing a virus or disease from one person to another

tv

has wide reac, incorporates sound and video. high cost, cluttered airways, more potential spillover

radio

inexpensive, can be selectively targeted, has wide reach, no video limits presentation, consumers give less focused attention than tv, exposure periods are short

magazines

very targeted, subscribers pass along to others. are relatively inflexible, have long lead times

newspapers

are flexible, are timely, can localize. can be expensive in some markets, involve potential loss of control over placement, advertisements have short life span

internet

can be lnked to detail content, highly flexible and interatvice, allows for specific targeting. costs not easily comparable to other media, becoming cluttered, blocking software prohibits delivery

outdoors

relatively inexpensive, offers opportunities for repeat exposure, flexible. not easily targeted, has placement problems in some markets, exposure time is very short

direct mail

highly targeted, flexible, allows for personalization. relatively expensive, is a cluttered environment, often considered junk mail

advertising schedule

specifies the timing and duration of advertising. three types of schedules: continuous, flighting, pulsing

continous schedule

runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and that require a steady level of persuasive and/or reminder advertising

flighting schedule

refers to an advertising schedule implemented in spurts, with periods of heavy advertising followed by period of no advertising. pattern for products whose demand fluctuates

pulsing schedule

combines the continuous and flighting schedule by maintaining a base level of advertising but increasing advertising intensity during certain periods

Create Advertisements

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print ads rely on:

headline, body copy, background, foreground, branding

headline

large type designed to draw attention and be read first

body copy

represents the main text portion of the ad

background

backdrop of the ad, usually a single color

foreground

refers to everything that appears on top of the background

branding

identifies the sponsor of the ad

Assess Impact Using Marketing Metrics

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pretesting

assessments performed before an ad campaign is implemented to ensure that the various elements ar working in an integrated fashion and doing what they are intended to do

tracking

includes monitoring key indicators, such as daily or weekly sales volume, while the ad is running to shed light on any problems with the message or medium

posttesting

the evaluation of the campaign's impact after it has been implemented--advertisers assess the sales and/or communication iompact of the ad or campaign at this stage

lift

additional sales caused y the advertising

Regulatory and Ethical Issues

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puffery

the legal exaggeration of praise, stopping just short of deception, lavished on a product

Public Relations

involves managing communications and relationships to acheive various objectives, such as building and maintaining a positive image of the firm, handling or heading off unfavorable stores or events, and maintaining postivie relationships with the media -- generate free media attention and general goodwill (pr activites)

cause-related marketing

refers to commercial acitivty in which businesses and charitites form a partnership to market an image, product, or service for their mutual benefit

event sponsorship

occurs when corporations support various activites (financially or otherwise) usually in the cultural or sports and entertainment sectors.

Sales Promotion

special incentives or excitement-building programs that encourage consumers to purchase a particular products or service, typically used in conjunction with other advertising or personal selling programs

Types of sales promotions

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coupons

certificate with a stated price reduction for a specific item or percentage of a purchase. stimulates demand, allows for direct tracing of sales. D- has low redemption rates, has high cost

deal

refers generally to a type of short term price reduction that can take several forms such as featured price, a price lower than the reg price, a buy one get one free offer, or a certain percentage more free offer contained in larger packaging. special financing arrangement also. A-encourages trial. reducews consumer risk D-may reduce perception of value

premium

offers an item for free or at a bargain price to reward some type of behavior, such as buying, sampling or testing. A- builds goodwill, increases perception of value D- consumers buy for premium not for product. has to be carefully managed

contests

refers to a brand sponsored competition tha trequires someform of skill or effort A- increases consumer involvement, generates excitement D- requires creativity, must be monitored

sweepstakes

offers prizes based on a chance drawing of entratnts names, don't require the entrant to complete a task other than buying a ticket or filling out a form. A- encourages present consumers to consume more D-sales often decline after

sampling

offers potential customer the opportunity to try a product or service before they make a buying decision. A-Encourages trial, offers direct involvement D- has high cost to the firm

loyalty programs

specifically designed to retain customer by offering premiums or other incentives to customers who make multiple purchases A-creates loyalty, encourages repurchase D-has high cost to the firm

point of purchase displays

(POP) merchanise displays located at the point of purchase such as the checkout counter in a supermarket. A-provides high visibility, encourages brand trial D-is difficult to get a good location in the store, can be costly to the firm

Rebates

price reduction where a portion of the purchase price is returned by the seller to the buyer in the form of cash A-stimulates demand, increases value perception D-is easily copied by competitors, may just advance future sales

product placement

when marketers use this, they include their product in nontraditional situations, such as in a scene in a movie or tv program A-displays products nontraditionally, demonstrates product uses D- firm often has little control over the display, product can be overshadowed

Using sales promotion tools

cross-promoting

cross-promoting

when two or more firms join together to reach a specific target market--to achieve a successful cross-promotion the two products must appeal to the same target market and together create value for the consumers.

Evaluating Sales promotions using marketing metrics

the realized margin from the promotion, the cost of the additional inventory carried due to buying more than the normal amount, the potential increas ein sales from the promoted merchandise, the long-term impact on sales of the promotion, the potential loss suffered when customers switch to the promoted merchandise from more profitable tvs (just an example), the additional sales made to customers attracted to the store by the promotion