Chapter 19 PDF

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Chapter 19 Friday, October 23, 2020

8:15 PM

Advertising, Public Relations, and Sales Promotions - Advertising ○ Paid form of communication delivered through media from an identifiable sourc organization, product, service, or idea designed to persuade the receiver to take or in the future 1. It's not free; is paid with money, trade, or other means 2. Must be carried by some medium; television, radio, print, the web, T-shirts, side 3. Legally, the source of the message must be known or knowable 4. Advertising represents a persuasive form of communication designed to get the some action ○ Most visible form of marketing communications ○ Global advertising expenditures approx $584 billion, almost half is spent in N Am

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Step 1: Identify Target Audience ○ The success of an advertising program depends on how well the advertiser can id audience ○ Set the tone for the advertising program and the type of media used to deliver t on the information gathered about the target audience through the firms resear § During this research, firms must keep in mind that their target audience m the same as the current product users Step 2: Set Advertising Objectives ○ The objectives of an advertising campaign are derived from the overall objective program ○ Advertising plan

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A subsection of the firms overall marketing plan that explicitly analyzes th advertising situation, identifies the objectives of the advertising campaign strategy for accomplishing those objectives, and indicates how the firm ca whether the campaign was successful Pull strategy § A strategy in which the goal is to get consumers to pull the product throug channel by demanding it § This is generally the objective in advertising Push strategies § A strategy designed to increase demand by motivating sellers -- wholesale salespeople -- to highlight the product, rather than the products of compe push the product onto consumers All advertising campaigns aim to achieve certain objectives § To inform, persuade, and remind customers Informative Advertising § Communication used to create and build brand awareness, with the ultima the consumer through the buying cycle to a purchase □ Helps to determine early stages of product life cycle Persuasive Advertising § Communication used to motivate consumers to take action § Generally occurs in the growth and early maturity stage of the product life attempts to accelerate the markets acceptance of the product § Persuasive advertising can be used in later stages to reposition an establis persuading consumers to change their existing perceptions of the product Reminder Advertising § Communication used to remind consumers of a product or to prompt repu for products that have gained market acceptance and are in the maturity s cycle § Appears in traditional media but also encompasses other forms of advertis Focus of Advertisements § An ad can be product focused, institutional focused, or public service focu § Product focused advertisements □ Advertisements used to inform, persuade, or remind consumers abo product or service § Institutional advertisement □ Type of advertising that promotes a company, corporation, business organization. Unlike product focus advertisements, it is not intended product or service §

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Public service advertising ® A specific category of institutional advertising that is advertisin public welfare and generally sponsored by nonprofit institutio religious organizations, trade associations, or political group; a marketing □ social marketing ® The content distributed through online and mobile technologi interpersonal interactions Step 3: Determine the advertising budget ○ Where is budgeting methods for marketing communications also apply to budge ○ First, firms must consider the role that advertising plays in their attempt to mee promotional objectives ○ second, advertising expenditures vary over the course of the product life cycle ○ Third, the nature of the market and the product influence the size of advertising nature of the market also determines the amount of money spent on advertising Step 4: Convey the Message ○ Marketers determine what they want to convey about the product or service ○ First the firm determines the key message it wants to communicate to the targe ○ Second, the firm decides what appeal would most effectively convey the messag ○ The message § Message provides the target audience with reasons to respond in the desi § Logical starting point for the add message is to tout the key benefits of the □ This message should communicate it's problem-solving ability clearly compelling fashion § Unique selling proposition (USP) or the value proposition □ A Strategy of differentiating a product by communicating its unique becomes the common theme or slogan in the entire advertising cam □ A good USP communicates the unique attributes of the product and a snapshot of the entire campaign ○ The appeal § Two categories of advertising appeals that are used to portray their produ persuade consumers to purchase them □ Informational ® Used in a promotion to help consumers make purchase decisio factual information and strong arguments built around relevan encourage them to evaluate the brand favorably on the basis o it provides ® By informing consumers about a potential source of its compe

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including tangible features and images of science, the advertis delivers an informational, persuasive message □ Emotional ® An appeal that aims to satisfy consumers' emotional desires ra utilitarian needs ® The key to a successful emotional appeal is the use of emotion between the consumer and the brand Step 5: Evaluate and Select Media ○ The content of an advertisement is tied closely to the characteristics of the med to carry the message, and vice versa ○ Media planning § The process of evaluating and selecting the media mix that will deliver a cl compelling message to the intended audience ○ Media mix § The combination of the media used and the frequency of advertising in ea ○ Media buy § The actual purchase of air time or print pages § Generally the largest expense in the advertising budget therefore markete decisions carefully § Television advertising is the most expensive § The dichotomy used to characterize various types of media □ Mass media ® Channels that are ideal for reaching large numbers of anonym members; including national newspapers, magazines, radio, an □ Niche media ® Channels that are focused and generally used to reach narrow with unique demographic characteristics or interests ® An example of a targeted niche media is a direct mailer ○ Choosing the right medium

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Determining the advertising schedule § Advertising schedule □ The specification of the timing and duration of advertising □ Three types: a continuous schedule, flighting, pulsing □ Continuous schedule ® An advertising schedule that runs steadily throughout the yea suited to products and services that are consumed continually steady rate and that require a steady level of persuasive or rem ® Bud Light, tide laundry detergent, Pepperidge Farm white brea □ Flighting ® And advertising schedule implemented in spurts, with periods advertising followed by periods of no advertising ® Sunscreen, snow boots, holiday decorations □ Pulsing ® And advertising schedule that combines the continuous inflati maintaining a base level of advertising by increasing advertisin certain periods ® Airlines, hotels, car rental companies are constantly advertisin schedule but may increase the advertising during is the offer. March, October, early November Step 6: Create Advertisements ○ During the step, the message and appeal or translated creatively into words, pic and/or music ○ Often, the execution style for the ad will dictate the type of medium used to del ○ For images, advertisers can use television and magazines ○ To promote price, they can use newspapers and radio ○ To appeal to specific target markets, they can use some of the electronica media ○ Consistency across all styles of media § Integrated marketing § Different executions deliver a consistent and compelling message to the ta ○ How to create advertisements C id th bj ti f th ad ○

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§ Consider the objective of the ad § Consider the targeted customer segment(s) § Consider the product or services value proposition or the unique selling pr § Consider how the ad will be coordinated with other IMC elements ○ Visual stuff is generally noticed first, headline is generally noticed second § Headline □ In an advertisement, large type designed to draw attention § Subhead □ An additional smaller headline in an ad that provides a great deal of through the use of short and simple words § Headlines and subheads should be short and use simple words that includ product or service benefits, the name of the brand, and an interest provok ○ Body copy § The main text portion of an ad § Used to build any interest generated by the visual and headlines, explains what the headline and subhead introduced, arouses desire for the product information to move the target consumer to action ○ Brand elements § Characteristics that identify the sponsor of a specific ad, typically through selling proposition ○ Creativity plays a major role in the execution stage but advertisers must not let t overshadow the message. The ad should be able to attract the audiences attenti reason for the audience to spend its time viewing the advertisement, and accom out to do Step 7: Assess Impact Using Marketing Metrics ○ The effectiveness of an advertising campaign must be assessed before, during, a campaign has run ○ Pretesting § Assessments performed before an ad campaign is implemented to ensure elements are working in an integrated fashion and doing what they are int ○ Tracking § Assessments that monitor key indicators, such as daily or weekly sales volu advertisement is running to shed light on any problems with the message ○ Posttesting § The evaluation of an IMC campaign's impact after it has been implemented § At this last stage, advertisers assess the sales and/or communication impa advertisement or campaign ○ Influences over consumers choice, purchase behavior, and attitudes § Level of competitors advertising

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§ Level of competitors advertising § Economic conditions in the target market § Sociocultural changes § In-store merchandise availability § Weather ○ Lift § Additional sales caused by advertising Regulatory and Ethical Issues in Advertising ○ The primary federal agencies that regulate advertising activities are the § Federal Trade Commission (FTC) □ Primary enforcement agency for most mass media advertising, but d with other agencies at times § Federal Communications Commission (FCC) § Food and Drug Administration (FDA)

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Puffery § The legal exaggeration of praise, stopping just short of deception, lavished § How do the courts determine what makes an ad deceptive rather than sim □ FTC says it "will not pursue cases involving obviously exaggerated or i i h h di d k i

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representation, i.e. those that ordinary consumers do not take serio § Less specific the claim = less likely to be deceptive § Puffery is acceptable as long as consumers know that the firm is stretching exaggeration Public Relations ○ The organizational function that manages the firms communications to achieve objectives, including building and maintaining a positive image, handling or head stories or events, and maintaining positive relationships with the media ○ Good PR is important but has grown as the costs of other forms of marketing co increased ○ The influence of PR has become more powerful as consumers have become incre of marketing claims made in other media § Because firms do not buy the space in print media or time on the radio or consumers feel media coverage generated through PR as more credible an ○ Cause-related marketing § Commercial activity in which businesses and charities form a partnership t a product, or a service for their mutual benefit; a type of promotional cam ○ Event sponsorship § Popular PR tool that occurs when corporations support various activities (f otherwise), usually in the cultural or sports and entertainment sectors ○ firms often distribute PR to communicate with various audiences. Some toolkit designed to inform specific groups directly, whereas others are created to gener attention and disseminate information

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Sales Promotion ○ Special incentives or excitement building programs that encourage the purchase service, such as coupons, rebates, contests, free samples, and point-of-purchase ○ The tools of any sales promotion can be focused on any channel member -- who or end-user consumers ○ When sales promotions are targeted at channel members, the marketer is emplo strategy; when a target consumers themselves, it is using a pull strategy ○ Types of sales promotions § Coupons □ Provides a stated discount to consumers on the final selling price of retailer handles the discount □ Used to stimulate demand and are issued by manufacturers and reta newspapers, on products, on the shelf, at in-store kiosks, at the cash Internet, through the mail, and I'm about devices even when custom □ Some retailers have linked their coupons directly to their loyalty pro □ Some coupons, whether printed from the Internet or sent to mobile contain information about the customer who uses it ® The barcode may identify the customer, his or her Internet ad page information, and even the search terms the customer us coupon in the first place ® There's a lot of information from his benefits for advertisers w their marketing more closely □ Had Low redemption rates and were therefore a relatively inexpens tool, but using customer data to create more targeted promotions h higher redemption rates, increasing their expense § Deals □ A type of short term price reduction that can take several farms, suc price", a price lower than the regular price; a "buy one, get one free percentage "more free" offer contained in larger packaging; can invo financing arrangement, such as reduced percentage interest rates o repayment terms □ Encourage customers to try product because they lower the risk for reducing the cost of the good

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reducing the cost of the good □ Can alter perceptions of value ® Short term price reduction may signal a different price quality would be ideal from the manufacturers perspective Premiums □ An item offered for free or at a bargain price to reward some type of buying, sampling, or testing □ Build goodwill among consumers, he often perceive high value in the □ Can be distributed in a variety of ways ® Included in product packaging ® Placed visibly on the package ® Handed out in the store ® Delivered in the mail □ Can be very effective if they are consistent with the brands message highly desirable to the target market □ Finding a premium that means these criteria at a reasonable cost ca challenge Contests □ A brand sponsored competition that require some form of skill or ef Sweepstakes □ A form of sales promotion the office price is based on a chance draw names □ Do not require the entrance to complete a task other than buying a t a form □ Key benefit of sweepstakes is that they encourage current consume more if the sweepstakes form appears inside the packaging or with t Samples □ Sampling ® Offers potential customers the opportunity to try a product or they make a buying decision ® One of the most costly and most effective sales promotion too Loyalty programs □ Specifically designed to retain customers by offering premiums or ot customers who make multiple purchases over time □ Need to be carefully managed because they can be costly Point-of-purchase displays □ Merchandise display located at the point of purchase, such as at the in a grocery store □ Retailers have long recognized that the most valuable real estate in t

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end of purchase because they increase product visibility and encour ® Customers impulse buy items that are at the point of purchase § Rebates □ Consumer discount in which a portion of the purchase price is return cash; the manufacturer, not the retailer, issues the refund □ Firms garner considerable value from rebates because they attract c therefore stimulate sales, but they may not have to pay off all the re because consumers don't bother to redeem them § Product Placement □ Inclusion of a product in nontraditional situations, such as in a scene television program □ Pieces visibility of their products or services Using Sales Promotion Tools § Marketers must be careful in their use of sales promotion, especially those lowering prices § When certain items are offered at a lower price consumers may decide to which only shifts sales from the future to the present and thereby these tw benefits at the expense of long-term sales stability § Cross-promoting □ efforts of two or more firms joining together to reach a specific targ □ In order for a cross promotion to be successful, the two products mu same target market and together create value for consumers

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