Chapter 18 - JJ Brotton PDF

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JJ Brotton...

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Advertising, sales promotion, and public relations Types of advertisements Product advertisements ● Advertising is any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor. ● Product advertisements are advertisements that focus on selling a product or service and which take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3) reminder. ● Three forms: ○ Pioneering (or informational) ○ Competitive (or persuasive) ○ Reminder Institutional advertisements ● Institutional advertisements are advertisements designed to build goodwill or an image for an organization rather than promote a specific production or service. ● Four forms: ○ Advocacy ○ Pioneering institutional ○ Competitive institutional ○ Reminder institutional Developing the advertising program ● Steps in developing an ad program: ○ Identifying the target audience ○ Specifying the advertising objectives ○ Setting the advertising budget Designing the Advertisement ● Message content ○ Informational element ○ Persuasive element ● Common types of appeals ○ Fear appeals - avoids negative experiences ○ Sex appeals - increase attractiveness ○ Humorous appeals - fun and exciting ● Creating the actual message ○ Celebrity spokespeople ■ Careful of image over time ○ Cost ○ Ideas and artwork

Selecting the Right Media

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Advertising media choices ○ Print ○ radio ○ TV ● Media selection: ○ Audience, production, messages, costs ● Media planning goals Television, direct mail, and newspapers account for more than 75% of all advertising expenditures ($ in millions).

Selecting the right media ● Basic terms of media buyers: ○ Reach is the number of different people or households expose to an advertisement. ○ A rating is the percentage of households in a market that are tunes to a particular TV show or radio station. ○ Frequency is the average number of times a person in the target audience is exposed to a message or an advertisement. ○ 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. ○ Costs 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).

Advertisers must consider the advantages and disadvantages of the many media alternatives.

Developing the advertising program selection criteria ● Factors to consider: ○ Media habits of target audience ○ Product attributes may require certain media to be used ○ Complexity of message ○ Cost Scheduling the advertising ● Factors to consider: ○ Buyer turnover - how often new buyers enter the market ○ Purchase frequence - how frequently product is purchased ○ Forgetting rate - speed that buyers forget the brand ● Scheduling approaches: ○ Continuous (steady) schedule ■ Steady, seasons not important ○ Flighting (intermittent) schedule ■ Intermittent, reflect seasonal demand ○ Pulse (burst) schedule ■ Burst, flighting and continuous, new product

Pretesting the advertising ● Pretests are tests conducted before and advertisement is placed in any medium to determine whether it communicates the intended message or to select among

alternative versions of the advertisement. ○ Portfolio tests ■ Test copy alternatives ○ Jury tests ■ Show copy to panel of consumers ○ Theater tests ■ Consumers view new shows or movies ■ Recording devices during viewing Carrying out the advertising program ● 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. ○ Complete range of services ● 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. ○ Contract for creative work ● In-house agencies consist of the company’s own advertising staff, who may provide full services or a limited range of services. ○ Company’s own staff Alternative structures of advertising agencies used to carry out the advertising program

Assessing the Advertising Program ● Post Tests are tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose. ○ Aided recall

■ Noted ■ Associated ■ Read ○ Unaided recall ○ Attitude tests ○ Inquiry tests ○ Sales tests ● Then, make any needed changes Sales promotions can be used to achieve many objectives

Public relations ● Publicity tools are methods of obtaining non personal presentations of an organization, product, or service without direct cost, such as news releases, news conferences, and public service announcements. ○ News release ○ News conference ○ Public service ○ Announcement (PSA) ○ Publicity often provides stronger impact does advertising!...