04 - Advertising and PR Flashcards
Elements of the Promotional Mix (10)
1) Sales Promotion
2) Advertising
3) Product Placement
4) Direct Marketing
5) PR
6) Event Sponsorships
7) Publicity
8) Personal Selling
9) Point of Purchase
10) Digital
Definition: Sales Promotion
Commonly referred to as promotion, sales promotion focuses on the selling of coupons or buy one get one free concepts in order to make the customer buy ASAP However this has short-lived effects and long-term relationships are hardly achieved.
Definition: Advertising
Catering to a wider demographic, advertising involves big banners or posters that cater to a certain demographic as opposed to just one person. However, this does make it harder to measure the sucess in conjunction with sales, can be very expensive and lacks the direct persuasiveness of salespeople, making it very impersonal.
Definition: Product Placement
As the name suggests, product placement consists of a company placing a certain product in a movie, series or publication where the actors are seen using the product in one way or another.
Definition: Direct Marketing
This direct to customer (DTC) approach inlcudes TV ads, informercials, telemarketing and consists of the company reaching out directly to the customer, without having to be personalised.
Definition: PR (Public Relations)
Highly connected with the image of the company PR involves word-of-mouth promotion and is often free or extremely low cost, where the customers are made to feel good about buying the product because the business supports a good cause, leading to the customers telling their friends and family about it.
Definition: Event Sponsorships
This can often be a win-win situation as a local team or event could profit off a big company whilst the company gets its name out there at the same time.
Definition: Publicity
Publicity can be both good or bad, but usually consists of creating a media hype about the product/service, leading to other peopple talking about the company once again being free promotion.
Definition: Personal Selling
Involves 1-on-1 sales with a salesman to customer approach. For example this could be a car salesman in a car dealership. This approach allows all kinds of customer relationships to spring up, whilst the buyer feels a greater need to listen and respond even though it has to be said that this is the most expensive promotion tool.
Definition: Point of Purchase
Point of Purchase takes advantage of the consumer being at the store or at the place where they planned to purchase something else, but are lured in by other advertisements (at the counter for example).
Definition: Digital
This approach is becoming ever more important in the emerging digital world and consists of social media marketing, banners on websites or in-app advertisements.
Definition: Integrated marketing communications
This concept focuses on being consistent with one’s marketing, so that the same thing is said on every medium. Although this can be incredibly hard to achieve, it should be seen as a goal for most businesses.
Stages of the basic communication model (6)
1) Sender sends message
2) Encode
3) Choose message channel
4) Decode
5) Arrives at reciever
6) Reciever gives feedback
Stages of marketing communication to consumers (8)
1) Unawareness
2) Awareness
3) Knowledge
4) Liking or disliking
5) Develop a preference
6) Conviction
7) Purchase
8) Repeat purchase
3 models for communication between marketers and consumers
1) One-to-many (Advertising, sales promotion, PR)
2) One-to-one (Database marketing, direct marketing, personal selling)
3) Many-to-many (Publicity, digital)
Definition: Push Strategy
This strategy is used for pushing products and communication from the manufacturer to the consumer whilst convincing the wholesaler to stock the product.
Definition: Pull Strategy
This approach is in the direction from customer to manufacturer and the demand is created by customers, proving to be more expensive for established brands.
The 5 Ms of Advertising (5)
1) Mission (Set sales goals and advertising objectives)
2) Money (Do we have the funds, market share and consumer base?)
3) Message (What do we want to say with our marketing?)
4) Media (What time, what medium, frequency, location?)
5) Measurement (What was the impact?)
Budget Strategies (4)
1) Affordable Method (spend as little as possible whilst still being impactful)
2) Percentage-of-Sales (allocate a certain percentage of sales towards advertising)
3) Competitive-parity method (Spend as much as the competition)
4) Objective-and-task method (Very rational and scientific approach that consists of 3 columns)
Objectives of a marketing message (4)
1) Awareness
2) Interest
3) Demand
4) Action
Types of creative appeals/messages (2)
1) Rational Approach
2) Emotional Approach (fear, humour, love, happiness, sex sells)
Message Execution Styles (9)
1) Slice of life
2) Lifestyle
3) Fantasy
4) Mood or image
5) Musical
6) Personality Symbol
7) Technical expertise
8) Scientific evidence
9) Testimonial evidence
Definition: Slice of life
The company chooses a certain lifestyle and finds a way that the product fits into that lifestyle.
Definition: Lifestlye
Presents a certain lifestyle and makes it clear that it is dependent on a product or is not possible without this product.
Definition: Fantasy
Creates a fantasy world that is only made possible by a product.
Definition: Mood or Image
Sets the tone with a product and gives the customer a certain image thanks to the product.
Definition: Musical
Usually seasonal, however here the whole ad is filled with music or singing.
Definition: Personality Symbol
The entire ad revolves around a personality (ex: Clooney and Nespresso).
Definition: Technical Expertise
Here the company gets a professional to suggest a product (ex: Dentists and toothpaste).
Definition: Scientific Evidence
Increases the level of ethos associated with the product by presenting statistics or any type of numerical evidence.
Definition: Testimonial Evidence
Does not have to be a celebrity, is usually an ordinary consumer who suggests the product or presents a before/after that is influenced by the product.
Media decision factors (6)
1) Reach
2) Frequency
3) Impact
4) Media type
5) Media vehicles
6) Timing and schedule
Definition: Reach
The % of the target audience exposed to the advertisement at least once during the measurement period (usually per month).
Definition: Frequency
Average number of times that the target audience was exposed to the advertisement during the measurement period (usually per month).
Definition: Gross Rating Points (GRPs)
A measure of the effectiveness of the media schedule.
Definition: Cost Per Thousand (CPM)
Cost to deliver the advertisement to 1,000 people; measures efficient advertising spending; allows for comparisons among similar media vehicles.
Types of advertising media scheduling (3)
1) Continuous (Same demand throughout)
2) Pulsing (Demand constantly up and down)
3) Flighting (Seasonal and only bought for a certain time period).
Types of advertising evaluation (2)
1) Communication Effect
2) Sales effect
Definition: Communication effect
Here the brand awareness, recall of product benefits and image are measured to determine the effectiveness of advertisement.
Definition: Sales effects
Compares the actual sales and the buyer intentions. However it is near impossible to measure the direct effect of advertising on sales, so the buyer intentions are measured instead.
Objectives of PR (5)
1) Promote goodwill (not accounting)
2) Promote a product or service
3) Internal communications
4) To counteract negative publicity
5) Lobbying the government
Proactive PR vs. Reactive PR
Proactive:
- Guided by marketing objectives
- Publicize a company and its brands
- Take an offensive rather than a defensive posture
Reactive:
- Something bad happens, then react
- Dictated by external influences
- Focuses on problems, not opportunities
- Requires defensive measures
Examples of PR activities (7)
1) Press releases
2) Feature stories in the media
3) Company newsletters
4) Interviews and press conferences
5) Sponsored events
6) Publicity events
7) Social media of all kind
