Chapter 19 Flashcards
Advertising
any paid form of nonpersonal communication about an organization, product, service, or idea by an identified sponsor
Two Types of Advertisements
- product advertisements
- institutional advertisements
Product Advertisements
advertisements that focus on selling a product/serv & take three forms
Three Forms of Product Advertisements
- Pioneering (or informational)
- Competitive (or persuasive)
- Reminder
Pioneering (Informational) Advertisements
tells people what a product is, what it can do, & where it can be found. The key obj is to inform the target market.
- Used in the introductory stage of product life cycle
- Are interesting, convincing, & effective
Ex: Lexus ad introducing its new IS 500 car
Competitive (Persuasive) Advertisements
promotes a specific brand’s features/benefits. The obj is to persuade the target market to select the firm’s brand rather than that of the competitor.
- Common form of competitive advertising is comparative advertising
Reminder Advertising
reinforces previous knowledge of a product
- Good for products that have achieved a well-recognized position & are in the mature phase of product life cycle
Ex: The Floras & Bouquets ad reminds consumers not to forget flowers on Valentines’s Day
Reinforcement Ad
used to assure current users they made the right choice
Ex: Dial Soap Tagline Ad- “Aren’t you glad you use Dial? Don’t you wish everybody did?”
Institutional Advertisements
advertisements designed to build goodwill or an image for an organization rather than promote a specific product/serv
- Used to support the public relations plan/counter adverse publicity
Four Forms of Institutional Ads
- Advocacy
- Pioneering Institutional
- Competitive Institutional
- Reminder Institutional
Advocacy Ads
state the position of a company on an issue
Ex: Chevron’s “We Agree” campaign placed ads stating its position on issues such as renewable energy, protecting the planet, & community development
Ex: IBM requests to “Be Equal” as businesses strive for gender equality
Pioneering Institutional Ads
used for announcements about what a company is, what it can do, where it’s located
Ex: KPMG ads informing businesses about its expertise w/ cyber security
Competitive Institutional Ads
promotes the advantages of one product class over another & are used in markets where different product classes compete for the same buyers
Ex: Milk processors/dairy farmers use their “got milk?” campaign to increase demand for milk as it competes against other beverages
Reminder Institutional Ads
bring the company’s name to the attention of the target market again
Ex: The Army sponsors a campaign to remind potential recruits of the opportunities available in the Army
Advertising can be managed by following the three steps
- Developing
- Executing
- Evaluating
Developing the Advertising Program 7 Steps
- Identifying the Target Audience
- Specifying Advertising Objectives
- Setting the Advertising Budget
- Designing the Advertisement
- Creating the actual message
- Selecting the Right Media
- Scheduling the Advertising
- Identify the Target Audience
influenced by the characteristics of the prospective customer. Understanding the lifestyles, attitudes, demographics of the target market.
Ex: Mountain Dew target young males & invests in partnerships w/ Twitch, placing ads targeted at video game players on Facebook, & sponsoring sports TV channel
- Specifying Advertising Objectives
helps advertisers when selecting media & evaluating a campaign
Ex: Advertising w/ an objective to create awareness, would be better matched w/ a magazine than a directory such as the yellow pages
- Setting the Advertising Budget
advertising options require a financial commitment
Ex: Paying to advertise in the SuperBowl is expensive
- Designing the Advertisement
message content & creativity, message appeals, creating the message
Message Content
ads have to contain at least some basic info to be successful
Advertising Creativity
determined by both the originality & appropriateness of the message used to inform & persuade, including visual/auditory presentation
Originality
message novelty, unexpectedness, & divergence from the norm
Appropriateness
message relevance & usefulness for the intended recipient
- Effective creative content should communicate a meaningful message that informs/persuades the recipient to take a course of action intended by the marketer
Message Appeals
creative info & persuasive content combined in the form of an appeal that provides a reason for the customer to act
Three Common Advertising Appeals
fear, sex, humor
Fear Appeals
suggest that the consumer can avoid some negative experience through the purchase & use of a product/serv, a change in behavior, or a reduction in the use of a product
Ex: Car ads depicting an accident/injury, smoking ads
Sex Appeals
suggest to the audience that the product will increase the attractiveness of the user
Ex: Calvin Klein Jeremy White Campaign
Humorous Appeals
imply either directly or subtly that the product is more fun or exciting than competitors’ offerings
Ex: Liberty Mutual ads that feature Doug & Limu make you smile/laugh
Creating the Actual Message
many comps use many forms of advertising to create their messages
Celebrity Spokesperson/ambassador
using athletes, actors, other celebrities to talk to consumers through their ads
Ex: Beyonće (pepsi), Michael Jordan (Nike), Selena Gomez
- Disadv: spokeperson’s image may change over time & look bad on brand
- Disadv: complex process of translating the copywriter’s ideas into an actual ad
Selecting the Right Media
must decide where to place ads
Advertising Media
the means by which the message is communicated to the target audience
Ex: Newspapers, magazines, radio, TV
Media Selection
related to the target audience, type of product, nature of the message, campaign objective, available budget, & costs of the alternative media
Choosing a Medium & a Vehicle within That Medium
company has several media to choose from & a number of alternatives/vehicles within each medium
medium
way you distribute your message, the channel
Ex: Tv, radio, digital, etc
Media Vehicle
very detailed component, where the medium is at
Ex: Media Vehicle: Gainesville Sun
Medium: Newspaper
Reach
the number of different people/households exposed to an advertisement
Ex: Newspapers use this to describe the number of diff households that buy the paper
Rating
the percentage of households in a market that are tuned to a particular TV show or radio station
Ex: TV/radio stations use this
Frequency
the average number of times a person in the target audience is exposed to a message/ad
Media Mix
the array of media used in an ad campaign
-all the different types of media
Gross Rating Points (GRPs)
a reference number used by advertisers that’s obtained by multiplying reach (expressed as a percentage of the total market) by frequency
Cost per Thousand (CPM)
the cost of reaching 1,000 individuals/households w/ the advertising message in a given medium (M is the Roman numeral for 1,000)
Scheduling the Advertising
no correct schedule to advertise a product, but 3 factors must be considered
Three Factors That Must Be Considered When Scheduling the Advertising of Product
Buyer Turnover: the higher the buyer turnover, the greater the amount of advertising required
Purchase Frequency. the more frequently the product is purchased, the less repetition is required
Forgetting Rate: the speed with which buyers forget the brand is advertising is not seen
Buyer Turnover
how often new buyers enter the market to buy the product
Three Types of Schedules
- Continuous (Steady) Schedule
- Flighting (Intermittent) Schedule
- Pulse (Burst) Schedule
Continuous (Steady) Schedule
when seasonal factors are unimportant, advertising is run at a continuous/steady schedule throughout the year
Ex: Breakfast cereals bc they have stable demand throughout year
Flighting (Intermittent) Schedule
periods of advertising are scheduled b/w periods of no advertising to reflect seasonal demand
Ex: Snow Skis & Suntan Lotions have seasonal demands
Pulse (Burst) Schedule
a flighting schedule is combined w/ a continuous schedule bc of increases in demand, heavy periods of promotion, or introduction of new product
› Ex: Toys/Cars facilitate sales throughout year & during special periods of increased demand (holidays/new car introductions)
Traditional Media
Television
Radio
Magazines
Newspapers
Outdoor
Television
Adv: reaches extremely large audience, uses picture, print, sound, & motion for effect; can target specific audiences
Disadvantage: High cost to prepare & run ads; short exposure time & perishable message; difficult to convert complex info
Radio
Adv: Low cost; can target specific local audiences; ads can be placed quickly; can use sound, humor, and intimacy effectively
Disadv: No visual element; short exposure time and perishable message; difficult to convey complex information
Magazines
Adv: Can target specific audiences; high-quality color; long life of ads; ads from print versions can be clipped and saved; can convey complex information
Disadv: Long time needed to place ad; relatively high cost; competes for attention with other magazine features
Newspapers
Adv: Excellent coverage of local markets; ads can be placed and changed quickly; ads can be saved; quick consumer response;
low cost
Disadv: Ads compete for attention with other newspaper features; short life span;
poor color in print versions
Outdoor
Creative
Adv: Low cost; local market focus; high visibility; opportunity for repeat exposures
Disadvantage: Message must be short and simple; low selectivity of audience; criticized as a traffic hazard
New Media (Digital/Interactive)
Search
Display Advertising
Email
Social Media
Mobile
Search
when you’re looking something up & there are different answers that come up. Companies pay to have them advertised first
Display Advertising
Video, banners, rich media, sponsorships
sending ads through email
Social Media
advertise on social media
Mobile
getting ads through texts
Executing the Advertising Program
- Pretesting the advertising
- Carrying out the advertising program
- Pretesting the Advertising
Pretests, Portfolio Tests, Jury Tests, Theater Tests
Pretests
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
Portfolio Tests
used to test copy alternatives
Jury Tests
involve showing the ad copy to a panel of consumers & having them rate how they liked it, how much it drew their attention, & how attractive they thought it was
Theater Tests
consumers are invited to view new tv shows or movies in which test commercials are also shown
Carrying Out the Advertising Program
can be handled in one of three ways
Three Advertising Agencies Used to Carry Out the Advertising Program
- Full-Service Agency
- Limited-Service Agency
- In-House Agency
Full-Service Agency
provides the most complete range of services, including marketing research, media selection, copy development, artwork, & production
-small # of agencies that dominate the ad industry/do everything for you
Ex: WPP advertising
Limited-Service Agency (Specialty/Boutique)
specializes 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
-Does some aspects of what you’re looking for
In-House Agency
made up of the company’s own advertising staff may provide full services or a limited range of services
-In your own org/internal
Ex: Having your own advertising group in your org to come up w/ storyline, producing, buying media, measure results, etc
Evaluating the Advertising Program
must be evaluated to determine whether they are achieving their intended objectives, & results may indicate that changes must be made
Evaluating the Advertising Program
- Posttesting the Advertising
- Making Needed Changes
Posttests
tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose
5 Approaches Common in Posttesting
aided recall
unaided recall
attitude tests
inquiry tests
sales tests
Aided Recall
after being shown an ad, respondents are asked whether their previous exposure to it was through reading, viewing, or listening
Unaided Recall
asking respondents a question such as, “What ads do you remember seeing yesterday?” without any prompting to determine whether they saw or heard advertising messages
Attitude Tests
asking respondents questions to measure changes in their attitudes after an advertising campaign
Inquiry Tests
offering additional product information, product samples, or premiums to an ad’s readers or viewers
Sales Tests
involves studies such as controlled experiments (using radio ads in one market & newspaper ads in another & comparing the results) & consumer purchase tests (measuring retail sales that result from a given advertising campaign)
Making Needed Changes
if the posttest results show that an advertisement is doing poorly in terms of awareness, cost efficiency, or sales, it may be dropped & other ads run in its place in the future
Two Kinds of Sales Promotions
- consumer oriented 2.trade oriented
Push Vs Pull
Push=Trade Oriented
Pull=Consumer Oriented
Consumer-Oriented Sales Promotions
sales tools used to support a company’s advertising & personal selling
Consumer-Oriented Sales Promotion Tools (PULL)
coupons
deals
premiums
contests
sweepstakes
samples
loyalty programs,
point-of-purchase displays
rebates
product placement
Coupons
sales promotions that usually offer a discounted price to the consumer, which encourages trial
Obj: stimulate demand
Adv: encourage retailer support
Disadv: consumer delay purchases
Deals
short-term price reductions, commonly used to increase trial among potential customers or to retaliate against a competitor’s actions
Ex: If a rival manufacturer introduces a new cake mix, the company responds with a “two packages for the price of one” deal
.
-Obj: Increase trial, retaliate against competitor’s actions
- Adv: Reduces consumer risk
Disadv: Consumers delay purchases; reduce perceived product value
Premiums
merchandise offered free or at a significant savings over its retail price
Ex: McDonald’s used a free premium during the release of Avenger’s Endgame; collectible toys were given away free w/ the purchase of a Happy Meal
- Obj: Build goodwill
- Adv: Consumers like free/reduced-price merchandise
-Disadv: Consumers buy for premium, not product
self-liquidating premium
the cost charged to the consumer covers the cost of the item
Contests
encourage consumers to apply their skill or analytical or creative thinking to try to win a prize
Ex: Kellogg’s sponsored the Pringles Mystery Flavor Contest, giving ppl the chance to guess a new flavor of Pringles. To enter contest, consumers purchased a can of chips, registered for rewards program, uploaded pic of their receipt, & their guess
-Obj: Increase consumer purchases; build business inventory
-Adv: Encourage consumer involvement w/product
-Disadv: Requires creative/analytical thinking
Sweepstakes
require participants to submit some kind of entry but are purely games of chance requiring no analytical or creative effort by the consumer
Ex: HGTV “Dream home giveaway”
-Obj: Encourage present customers to buy more; minimize brand switching
-Adv: Get customer to use product/store more often
-Disadv: Sales drop after sweepstakes
Two Types of Sweepstakes:
Offer Products that Consumers Value as Prizes
Offers an Experience
Offer Products that Consumers Value as Prizes Sweepstakes
Ex: Winning a Toyota car
Offers an Experience Sweepstakes
Winning a trip to the Oscars
Samples
offering the product free or at a greatly reduced price
Ex: Taco Bell gave away free Doritos Locos Tacos bc the GSW stole an away game in the NBA finals
-Obj: Encourage new-product trial
-Adv: Low risk for consumer
-Disadv: High cost for company
Loyalty Programs
used to encourage & reward repeat purchases by acknowledging each purchase made by a consumer & offering a premium as purchases accumulate
Ex: Credit card reward programs, Starbucks lets you earn stars that can be redeemed for drinks, food, merch
-Obj: Encourage repeat purchases
-Adv: Creates loyalty
-Disadv: High cost for company
Point-of-Purchase Displays
take the form of advertising signs, which sometimes actually hold/display the product, & are often located in high-traffic areas near the cash register or the end of an aisle
Ex: New movies section in Target
-Obj: Increase product trial; provide in-store support for other promotions
-Adv: Provide good product visibility
-Disadv: Hard to get retailer to allocate high-traffic space
Rebates
offers the return of money based on proof of purchase
Ex: T-Mobile offered a $360 to $390 rebate to smartphone owners who would trade in their phone & add a new line
-Obj: Encourage customers to purchase, stop sales decline
-Adv: Effective at stimulating demand
-Disadv: Easily copied; steal sales from future; reduce perceived product value
Product Placements
the use of a brand-name product in a movie, tv show, video game, or commercial for another product
Ex: Placement of Reese’s Pieces in ET movie that brought a lot of interest to the candy
-Obj: Introduce new products; demonstrate product use
-Adv: Positive message in a noncommercial setting
-Disadv: Little control over presentation of product
Trade-oriented Sales Promotions (PUSH)
sales tools used to support a company’s advertising & personal selling directed to wholesalers, retailers, or distributors
Trade-Oriented Sales Promotions (PUSH)
- Allowances & Discounts
- Cooperative Advertising
- Training of Distributors’ Salesforces
Allowances & Discounts
trade allowance
merchandise allowance
case allowance
finance allowance
dealer contests
Trade Allowance
if you buy a certain amount then you get a discount
Merchandise Allowance
reimbursing a retailer for extra in-store support of special featuring of the brand
Case Allowance
a discount on each case ordered during a specific time period
Finance Allowance
pays retailers for financing costs or financial losses associated w/ consumer sales promotions
2 Types of Finance Allowance
Floor Stock Protection Program
Freight Allowances
Floor Stock Protection Program
› manufacturers give retailers a case allowance price for products in their warehouse, which prevents shelf stock from running down during the promotional period
Freight Allowances
compensate retailers that transport orders from the manufacturer’s warehouse
Dealer Contests
whoever sells the most amount of product will get discount
Trade Shows
where you showcase your product & offer it at a special price
Cooperative Advertising
programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products
Training of Distributor’s Salesforces
training activities include producing manuals & brochures to educate the reseller’s salesforce, national sales meetings, etc
Publicity Tools
methods of obtaining nonpersonal presentation of an org, product, or serv without direct cost-are available to the public relations director
Three Types of Publicity Tools
- News Release
- News Conference
- Public Service Announcements (PSAs
News Release
an announcement regarding changes in the company or product line
-Obj. is to inform a newspaper, radio station, or other medium of an idea for a story
News Conference
representatives are all invited to an informational meeting, & advance materials regarding the content are sent.
- Used when new products are introduced or significant changes in corporate structure & leadership are being made
Public Service Announcements (PSA)
free space or time denoted by the media (nonprofits use this)
Ex: Red Cross prohibits any local chapter from advertising, so to solicit blood donations local chapters depend on PSAs on radio/tv to announce their needs
Ways Promotion Practices Improve Transactions & Increase Customer Intimacy
- Building Long-Term Relationships
- Increasing Self - Regulation
Goals of Advertising (Ad Tasks)
Inform
Persuade
Sell
Reinforce
Remind
Inform (Introduction Stage)
to ensure ppl know about your product/gaining awareness
Persuade (Growth Stage)
want to show that you’re different from the others
-product ad/institutional ad
Sell (Maturity Stage)
Making sure that ppl are buying from you
Reinforce (Maturity Stage)
Make customer feel good that they bought the product/reinforces that they made the right decision
Remind (Maturity Stage)
You’ve bought it before/are a loyal customer & we want you to keep doing it/remind you to buy again
Theories of Advertising
Hierarchy or effects, Low involvement hierarchy, dual mediation
Hierarchy of Effects Model
A model of the process by which advertising works that assumes a consumer must pass through a sequence of steps from initial awareness to eventual action. The stages include awareness, interest, evaluation, trial, and adoption.
Think-Feel-Do
low involvement hierarchy
cognition-conation-affect
Think-Do-Feel
Dual Mediation
Attitudes towards ad affects attitudes toward brand AND Brand recognition
(if you like the ad, you like the brand THEN think more thoughts about brand)
-Two theories can exist together but one will dominate
Subliminal Advertising
ambiguous stimuli
Embedded stimuli
Truly Subliminal Stimuli
ambiguous stimuli
when you think you hear/see something
embedded stimuli
logos w/hidden meaning
Ex: Tostitos two ppl sharing chips & salsa
truly subliminal stimuli
have no idea that you’re being exposed to it but it may influence what you think
Why Sales Promotions
ROI Tracking
Creates powerful incentives
Can increase sales of commodities
Can create sampling & brand switching
Can help increase market share
Why Has Sales Promotion Increased
Growing Retailer Power
Increased Promotion Sensitivity
Brand & Advertising Clutter
Accountability
Short-Term Focus
