MKT 354 CH. 14, 15, & 16

Principles of Advertising

Reach

total number of different people or households exposed to an advertising schedule during a given time

Frequency

measures the intensity of a media schedule, based on repeated exposures to the vehicle or the program

Lazy S Curve

suggests that a minimum threshold (A) of advertising frequency must be crossed before a meaningful response is achieved. At some level of frequency, another threshold (B) is crossed, and the response begins to level off or even decline due to overexposure

Brand development index (BDI)

percentage of a brand’s total sales in an area divided by that area’s percentage of the total U.S. population, multiplied by 100

Category development index (CDI)

percentage of a product category’s total U.S. sales in an area divided by the percentage of the total U.S. population in the area, multiplied by 100

Continuous schedule

advertising runs steadily with little variation

Flighting schedule

periods of advertising are alternated with periods of no advertising at all

Pulsing schedule

mixing continuity and flighting strategies

Pros of personal selling

• Personal and persuasive

• Facilitates instant feedback

• Flexibility to adjust the presentation

• Flexibility in time

• Helps in distribution of new products

• Good for high-priced items

Cons of personal selling

• Labor-intensive and costly

• Time-consuming

• Poor reputation/perception

• Requires highly-trained salespeople with the right personality attributes

Sales promotion

Direct inducement offering extra incentives all along the marketing route to accelerate the movement of the product from the producer to the customer

B2B sales promotion tactics

• Trade concentration

• Slotting allowances

• Trade deals

• Display allowances

• Buyback allowance

• Advertising allowances

• Cooperative (co-op) advertising

• Company conventions

• Dealer meetings

B2C sales promotion tactics

• Point-of-purchase (P-O-P) materials

• Coupon

• Digital coupon

• Convenience cards

• Cents-off promotions

• Rebates

• Premium

• Sampling

• Combination offers

• Contests/Sweepstakes

Public Relations (PR)

The strategic management of relationships and communications that individuals and organizations have with other groups for the purpose of creating mutual goodwill

Publicity

generation of news about a person, product, or service that appears in broadcast or print media

House Organ

a publication about happenings and policies at the company

Venue Marketing

Surged in popularity. By selling the naming rights to stadiums, arenas, and centers, cities get help paying for public venues. Advertisers get a high- profile way to see their brands mentioned thousands of times each year in sports stories