chap018
DESCRIPTION
TRANSCRIPT
18-1McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
18-2
LO2Describe the steps used to develop, execute, and evaluate an advertising program.
Explain the advantages and disadvantages of alternative advertising media.
LO3
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 18, YOU SHOULD BE ABLE TO:
Explain the differences between product advertising and institutional advertising and the variations within each type.
LO1
18-3
LO4Discuss the strengths and weaknesses of consumer-oriented and trade-oriented sales promotions.
Recognize public relations as an important form of communication.LO5
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 18, YOU SHOULD BE ABLE TO:
18-4
WHERE CAN YOU WATCH TV?WHERE CAN’T YOU?
Online TV (OTV)
18-5
TYPES OF ADVERTISEMENTSPRODUCT ADVERTISEMENTS
LO1
Advertising
• Pioneering(or Informational)
• Competitive(or Persuasive)
• Reminder
Product Advertisements
• Comparative
• Reinforcement
18-6
Campbell’s, 1&1, and Red BullWhat is the type and purpose of each advertisement?
LO1
18-7
Dial SoapWhat is the type and purpose of this advertisement?
LO1
18-8
TYPES OF ADVERTISEMENTSINSTITUTIONAL ADVERTISEMENTS
LO1
Institutional Advertisements
• Advocacy
• Pioneering Institutional
• Competitive Institutional
• Reminder Institutional
18-9
Chevron and BridgestoneWhat is the type and purpose of each advertisement?
LO1
18-10
Got Milk? and U.S. ArmyWhat is the type and purpose of each advertisement?
LO1
18-11
DEVELOPING THEADVERTISING PROGRAM
LO2
Identifying the Target Audience
Specifying the Advertising Objectives
Setting the Advertising Budget
18-12
FIGURE 18-1FIGURE 18-1 The Super Bowl delivers a huge audience if you can afford the cost of placing an ad
18-13
GOING ONLINESee Your Favorite Super Bowl Ads Again!
LO2
18-14
DEVELOPING THEADVERTISING PROGRAM
DESIGNING THE ADVERTISEMENT
LO2
Message Content
• InformationalElement
• PersuasiveElement
Types of Appeals
• Fear Appeals
• Sex Appeals
• Humorous Appeals
18-15
World Wide Fund, Candie’s, and GeicoWhat is the appeal and purpose of each advertisement?
LO2
18-16
DEVELOPING THEADVERTISING PROGRAM
DESIGNING THE ADVERTISEMENT
LO2
Creating the Actual Message
• Celebrity Spokespeople
• Ideas and Artwork
• Cost
18-17
DEVELOPING THEADVERTISING PROGRAM
SELECTING THE RIGHT MEDIA
LO2
Advertising Media
• Maximize Exposure
• Minimize Costs
Media Planning Goals
18-18
FIGURE 18-2FIGURE 18-2 Television, direct mail, and newspapers account for more than 65% of all advertising expenditures (in $millions)
18-19
DEVELOPING THEADVERTISING PROGRAM
SELECTING THE RIGHT MEDIA
LO2
Basic Terms
• Reach
• Rating
• Frequency
• Gross Rating Points (GRPs)
• Cost per Thousand (CPM)
= Reach × Frequency
18-20
USING MARKETING DASHBOARDSWhat is the Best Way to Reach 1,000 Customers?
Cost per Thousand (CPM) Impressions
CPM ($) = Advertising Cost ($)
Impressions Generated (#)1,000
LO2
18-21
FIGURE 18-3FIGURE 18-3 Advertisers must consider the advantages and disadvantages of the many media alternatives
18-22
DEVELOPING THEADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES
LO3
Television
• Out-of-Home TV
• Online TV (OTV)
18-23
DEVELOPING THEADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES
LO3
Television
• Wasted Coverage
• Cable and Satellite TV
• Infomercials
18-24
DEVELOPING THEADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES
LO3
Radio
• Satellite Radio • Drive Times
18-25
DEVELOPING THEADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES
LO3
• Regional Issues
Magazines
18-26
DEVELOPING THEADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES
LO3
Newspapers
• Falling Circulation & Ad Revenue
• New Types of News Organizations
• Online and Mobile
18-27
DEVELOPING THEADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES
LO3
Yellow Pages
18-28
DEVELOPING THEADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES
LO3
• Paid Search
• Rich Media
Internet
• Banner/Display Ads
• Assessment
18-29
FIGURE 18-4FIGURE 18-4 Google and Yahoo! have the largest shares of Internet searches and offer opportunities for online advertising
18-30
MAKING RESPONSIBLE DECISIONSWho is Responsible for Click Fraud?
LO3
Pay-to-Read
Click Bots
Webtipping
18-31
DEVELOPING THEADVERTISING PROGRAM
OTHER MEDIA ALTERNATIVES
LO3
Outdoor
• TransitAdvertising
• Billboards
18-32
DEVELOPING THEADVERTISING PROGRAM
OTHER MEDIA ALTERNATIVES
LO3
Other Media
• Placed-Based Media
Selection Criteria
• Media Habits • Cost
• Product Attributes
18-33
DEVELOPING THEADVERTISING PROGRAMSCHEDULING THE ADVERTISING
LO3
Factors to Consider
• Buyer Turnover
• Forgetting Rate
• Purchase Frequency
18-34
DEVELOPING THEADVERTISING PROGRAMSCHEDULING THE ADVERTISING
LO3
Approaches
• Continuous (Steady) Schedule
• Pulse (Burst) Schedule
• Flighting (Intermittent) Schedule
18-35
EXECUTING THEADVERTISING PROGRAMPRETESTING THE ADVERTISING
LO3
Pretests
• Portfolio Tests
• Theater Tests
• Jury Tests
18-36
EXECUTING THEADVERTISING PROGRAM
CARRYING OUT THE ADVERTISING PROGRAM
LO3
Full-Service Agency
Limited-Service Agencies
In-House Agencies
18-37
FIGURE 18-5FIGURE 18-5 Alternative structures of advertising agencies used to carry out the advertising program
18-38
ASSESSING THEADVERTISING PROGRAMPOSTTESTING THE ADVERTISING
LO3
Posttests
Aided Recall Unaided Recall
• Noted
• Read Most
• Seen-Associated
Attitude Tests
Inquiry Tests
Sales Tests
18-39
FIGURE 18-6FIGURE 18-6 Sales promotions can be used to achieve many objectives
18-40
SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTION
LO4
Consumer-Oriented Sales Promotion
Coupons
18-41
SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTION
LO4
Deals
18-42
SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTION
LO4
Premiums
• Self-Liquidating: Free Toy in Happy Meal
• Deal-Prone & Value Seeing Consumers
18-43
SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTION
Contests
LO4
18-44
SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTION
• Value-Based Prizes
• Experience-Based Prizes
LO4
Sweepstakes
18-45
SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTION
LO4
Samples
18-46
SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTION
LO4
Loyalty Programs
18-47
SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTION
LO4
Point-of-Purchase Displays
18-48
SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTION
LO4
Rebates
18-49
SALES PROMOTIONCONSUMER-ORIENTED SALES PROMOTION
Product Placement
LO4
18-50
SALES PROMOTIONTRADE-ORIENTED SALES PROMOTION
LO4
Trade-Oriented Sales Promotion
Allowances and Discounts
• Merchandise Allowance
• Finance Allowance
• Case Allowance
Free Goods
Floor Stock Protection Freight Allowance
18-51
SALES PROMOTIONTRADE-ORIENTED SALES PROMOTION
LO4
Cooperative Advertising
Training of Distributors’ Salesforces
18-52
PUBLIC RELATIONSPUBLICITY TOOLS
LO5
Publicity Tools
Public Relations
• News Release
• News Conference
• Public ServiceAnnouncement (PSA)
18-53
INCREASING THE VALUEOF PROMOTION
LO5
Self-Regulation
Building Long-Term Relationships with Promotion
18-54
GOOGLE, INC.: THE RIGHT ADSAT THE RIGHT TIME
VIDEO CASE 18
18-55
VIDEO CASE 18GOOGLE
1. Describe several unique characteristics about Googleand its business practices.
18-56
VIDEO CASE 18GOOGLE
2. What is Google’s philosophy about advertising? How can less advertising be preferred to more advertising?
18-57
VIDEO CASE 18GOOGLE
3. Describe the types of online advertising available today. Which type of advertising does Google currently dominate? Why?
18-58
VIDEO CASE 18GOOGLE
4. How can Google be successfulin the display advertising business? What other areas of growth are likely to be pursuedby Google in the future?
18-59
Advertising
Advertising is any paid formof nonpersonal communicationabout an organization, good, service, or idea by an identified sponsor.
18-60
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.
18-61
Institutional Advertisements
Institutional advertisementsare advertisements designed to build goodwill or an image for an organization rather than promotea specific good or service.
18-62
Reach
Reach is the number of different people or households exposed to an advertisement.
18-63
Rating
A rating is the percentage of households in a market that are tuned to a particular TV show or radio station.
18-64
Frequency
Frequency is the averagenumber of times a person in the target audience is exposed to a message or an advertisement.
18-65
Gross Rating Points (GRPs)
Gross rating points (GRPs) isa reference number used by advertisers that is obtained by multiplying reach (expressed asa percentage of the total market) by frequency.
18-66
Cost per Thousand (CPM)
Cost per thousand (CPM) isthe cost of reaching 1,000 individuals or households withthe advertising message in a given medium (M is the Roman numeral for 1,000).
18-67
Infomercials
Infomercials are program-length (30-minute) advertisements that take an educational approach to communication with potential customers.
18-68
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.
18-69
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.
18-70
Limited-Service Agencies
Limited-service agencies are advertising agencies that specializein 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.
18-71
In-House Agencies
In-house agencies consist of the company’s own advertising staff, who may provide full services ora limited range of services.
18-72
Posttests
Posttests are tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose.
18-73
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.
18-74
Product Placement
Product placement is a consumer sales promotion tool that uses a brand-name productin a movie, television show, video game, or a commercial for another product.
18-75
Trade-oriented sales promotions are sales toolsused to support a company’s advertising and personal selling directed to wholesalers, distributors, or retailers. Also called trade promotions.
Trade-Oriented Sales Promotions
18-76
Cooperative Advertising
Cooperative advertisingconsists of advertising programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products.
18-77
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.