Advertising, Promotions, and PR in detail Flashcards
Sales promotion
programs designed to create short-term bursts in sales, encourage a trial of new product, stimulate sales of existing product, or build interest
trade promotions
between companies in a distribution center
cooperative advertising, merchandising and case allowances, trade shows, promotional items, and POP
cooperative advertising
manufacturer pays a portion of the local retail advertising
Best Buy and Canon each pay half for advertising
Merchandising and case allowances
special deals that manufacturers give to wholesalers/retailers to get them to buy more at a time
dangers: forward-buying people buy ahead of time so they might not come back for a while, and diverting
trade shows
for B2B, the manufacturer can showcase products
promotional items
products emblazoned with logos to be given away
POP display
point-of-purchase display
checkout counter at grocery story
All sales promotions have
restrictions
time, amount
price-based consumer sales promotion
coupons, price deals, refunds and rebates, frequency/loyalty/continuity programs, special bonus packs
attention-getting consumer promotion
contests, sweepstakes, premiums, samplings, point-of-purchase promotion, cross-promotion
Promotions are a ____ to the company
cost
Concerns about promotions
diluting brand equity
creating sales promotion “traps”-IDK
temporary effect is not worth the cost to run and the low margin volume obtained
stealing from future sales
cannibalizes full margin sales from loyal customers
Public Relations
communication function that builds good relationships with an organization’s public, including customers, stockholders, legislators, and other firm stakeholders
“If you do something good, then talk about it.”
publicity
unpaid communication, like stories in the news, about and organization and its products
PR is responsible for creating _____ plans in the event of _____
crisis management
unfavorable events
PR Objectives
introducing new products to manufacturers, retailers, and consumers
influencing government legislation through lobbying or speech writing
enhancing a firm’s image, corporate identity, corporate branding, institutional focus, word of mouth
showcasing a firm’s involvement in the community, corporate social responsibility
corporate identity: corporate branding, institutional advertising
internal PR for employees
improving and/or maintaining investor relations
Press releases consist of
timely topics, research project stories, consumer info releases, media relationship sponsorships, special events
can also serve as internal PR for employees: employee of the month
Advertising
the image of marketing
Non personal communication (paid for by an identified sponsor) that uses mass media to persuade or inform the targeted audience
Ad Campaign Development Steps
- Identify Target Audience
- Set ad objectives
- Budget
- Convey the message
- Media Strategy
- Create Ad
- Assess impact
- Identify Target Audience
Getting inside the customer’s head can help marketers understand how the product fits in the users’ lives
segmentation, targeting and positioning
- Set ad objectives
inform, persuade, remind
product or institutional focus
hierarchy of effects
push/pull
product advertising
advertising for a specific product
institutional advertising
corporate message that focuses on activities, personality, or point-of-view of a company
“philosophy of doing business”, advocacy advertising, employment
HP photos
non-profit
Trade Association
primary demand
ads designed to generate demand for an entire industry or product category
Got Milk?
selective demand
specific to a brand, firm, or item
Hood milk
- Budget
what can you afford to do and where to spend it
- Convey the message
creative strategy
advertising appeal
creative strategy
turns concept into an ad, the “big idea”, USP
advertising appeal
central idea of an ad
Does it grab attention?
Does it enforce brand name or message?
USP
unique selling proposition-strategy of differentiating a product by communicating its unique attributes
often becomes a common theme or slogan in the entire ad campaign
Red Bull - “Gives you Wings”
NY Times - “All the News That’s Fit to Print”
informational ad appeals
comparative advertising, demonstration, testimonial
emotional ad appeals
fear/safety humor happiness love/sex comfort nostalgia
parody
a work that imitates another work for the purpose of ridicule or ironic commentary
Be careful of Parody and Copyright Law, although US Supreme Court views parody as a form of free speech unless the parody steals market demand from the original (replicas of original work)
Comparative ads
that mention other products can be tricky because you’re giving your competitor free publicity
pretesting
seeks to minimize mistakes by getting consumer response to ads before they appear in the media
copy testing
measures effectiveness of ads
- Media Strategy
Deciding when/where/how often to place ads so target market will see them
which media and vehicles will be most effective in attaining market objectives? traditional media and the internet
comparison between media
Television has a wide reach but high costs, lots of channel and program options, and could increase awareness of competitor products
Radio is relatively inexpensive, can be selectively targeted, and has a wide reach. However, there is no video, which limits presentation, consumers focus less attention than TV, and exposure periods are short
Magazines are very targeted and subscribers pass along to others, but they are relatively inflexible and take time to be available
Newspapers are flexible, timely, and able to localize, but they can be expensive in some markets and ads have a short life span
Internet can be linked to detailed content, is highly flexible and interactive, and allows for specific targeting. It is also becoming cluttered and the ad could be blocked by software.
Outdoors is relatively inexpensive and offers opportunities for repeat exposure but is not easily targeted, has short exposure time, and has placement problems in some markets
Direct marketing is highly targeted and allows for personalization but has varying costs: traditional media will be more expensive than newer media
Product placement is a/an _____ form of advertising
indirect
media scheduling
specifies exact media to use and when to use it
ad exposure
defines degree to which the target market will see an ad message in specific vehicles
impressions
measures number of people exposed to a message in one or more vehicles
reach
percentage of target marekt exposed to media vehicle
frequency
measures average number of times a person in the target group will be exposed to the message
GRPs
gross rating points
reach x frequency
cost per thousand
CPM, cost to deliver message to 1000 people
(Total $ cost of ad)/(# of people reached/1000)
compares relative cost efficiency of different media vehicles
Flighting advertising schedule
advertising schedule implemented in spurts, with periods of heavy advertising followed by periods of no advertising
Pulsing advertising schedule
combines continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods
- Assess impact
posttesting-evaluation of an IMC campaign’s impact after it has been implemented
aided and unaided recall
Ethical Issues of Advertising
can be manipulative, deceptive, offensive, in bad taste, perpetuate stereotypes, cause people to buy things they don’t really need
Continuous advertising 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 or reminder advertising
trade show
manufacturers show off product to wholesalers and retailers
POP display
signs, displays, banners, etc., used in stores to encourage purchase
promotional items
products emblazoned with logos to be given away
Sales Incentive Programs
cash prizes, trips, and other perks to hit sales incentives
Public Relations activities consist of
media relations sponsorships special events buzz-building: word of mouth and blogging advice and counsel
Goals of advertising:
To inform, persuade, remimd, and build relationships
Retail/Local Advertising
encourages customers to shop at a specific store or us a local service
cooperative advertising
Internet Advertising
banners, buttons, pop-up ads, search engine and directory listings, email
Factors affecting media scheduling
match between the target market profile and the people reached by different media vehicles
advertising patterns of competitors
capability of medium to convey desired info
compatibility of product with editorial content
diverting
When a retailer buys products from a manufacturer at a discount and then hides it in their warehouses (not selling it in their store) only to later sell it to other retailers or customers when the manufacturer’s price goes back up.
