Chapter 16: Advertising, Public Relations, and Sales Promotion.

Pioneering Advertising

A form of advertising designed to stimulate primary demand for a new product or product category. Used heavily during the introductory stage.

Competitive Advertising

A form of advertising designed to influence demand for a specific brand. Used in the growth phase to show differences, build recall, and create favorable attitudes.

Comparative Advertising

A form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes. Used for products with slow growth or against strong competitors.

Advertising Appeal: Profit

Lets consumers know whether the product will save them money, make them money, or keep them from losing money.

Advertising Appeal: Health

Appeals to those who are body conscious or want to be healthy.

Advertising Appeal: Fear

Centers around social embarrassment, growing old, or losing one's health. Requires care in execution.

Advertising Appeal: Admiration

Frequently highlights celebrity spokespeople.

Advertising Appeal: Convenience

Often used for fast-food restaurants and microwavable foods.

Advertising Appeal: Fun and Pleasure

Keys to advertising vacations, beer, amusement parks, etc.

Advertising Appeal: Vanity and Egotism

Used most often for expensive or conspicuous items such as cars and clothing.

Advertising Appeal: Environmental Consciousness

Centers around protecting the environment and being considerate of others.

Media Decision: Newspapers

Good for geographic flexibility and timeliness (mass market). Disadvantages: Distractions, poor reproduction quality.

Media Decision: Magazines

High cost per contact, but low cost per potential customer if targeted correctly. Good for reaching specific audiences.

Media Decision: Radio

Advantages: Selectivity, large out-of-home audience, low cost, timeliness. Good for local advertisers.

Media Decision: Television

Can reach broad or segmented markets. Expensive. Good for demonstrating products.

Infomercial

A 30-minute or longer advertisement that looks more like a television talk show than a sales pitch.

Media Decision: The Internet

Widely available space; programmatic ads allow real-time targeting. Significant growth in mobile.

Media Mix

The combination of media to be used for a promotional campaign.

Cost Per Contact (CPM)

The cost of reaching one member of the target market.

Cost Per Click

The cost associated with a consumer clicking on a display or banner ad.

Reach

The number of target consumers exposed to a commercial at least once during a specific period.

Frequency

The number of times an individual is exposed to a given message during a specific period.

Company Websites (PR Role)

Used to introduce products, provide media info, communicate legislative info, showcase events, and interact with customers.

Sales Promotion

Marketing communication activities (other than advertising, personal selling, PR) in which a short-term incentive motivates consumers or channel members to purchase immediately.

Trade Sales Promotion

Promotion activities directed to members of the marketing channel, such as wholesalers and retailers.

Trade Allowance

A price reduction offered by manufacturers to intermediaries such as wholesalers and retailers.

Push Money

Money offered to channel intermediaries to encourage them to "push" products—that is, to encourage other members of the channel to sell the products.

Consumer Sales Promotion

Promotion activities targeted to the ultimate consumer market.

Coupon

A certificate that entitles a consumer to an immediate price reduction when the product is purchased.

Rebate

A cash refund given for the purchase of a product during a specific period.

Premium

An extra item offered to the consumer, usually in exchange for some proof of purchase.

Loyalty Marketing Program

A promotional program designed to build long-term, mutually beneficial relationships between a company and its key customers.

Sampling

A promotional program that allows the consumer the opportunity to try a product or service for free.

Point-of-Purchase (POP) Display

A promotional display set up at the retailer's location to build traffic, advertise the product, or induce impulse buying.