MKTG 101 CH 16 Cengage + Class

effects of advertising

Helps marketers increase or maintain brand awareness and market share

• may transform consumer attitude

• different brand attributes, change their appeal

  • achieve advantage over competing brands

Advertising

Placement of announcements and messages in time or space by business firms, nonprofit orgs, govt agencies, and individuals who seek to inform/persuade members of a particular target market or audience regarding their products, services, orgs or ideas

Advertising Response Function

phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns

Major types of advertising

any form of nonpersonal, paid communication where the brand is identified

• institutional

• product

Institutional advertising

enhances a company image rather than promote a particular product

determine what goals or objectives the advertising should achieve

objectives depend on corportate objectives and the product being advertised and determined using DAGMAR approach

Product advertising

Shows benefits of a specific good or service

3 main categories

pioneering/informational, competitive/persuasive, and comparative

PLC is a determinant for type of advertising

advocacy advertising

organization expresses its views on controversial issues or responds to media attacks

pioneering/ informational advertising

designed to stimulate primary demand for a new product or product category

-Intro stage of PLC

Indepth info abt benefits of the product class

competitive/ persuasive advertising

a form of advertising designed to influence demand for a specific brand

• focus more on emotions

Comparative ads

Directly or indirectly compares two or more competing brands on one or more specific attribute

advertising campaign

series of related advertisements focusing on a common theme, slogan, and set of advertising appeals

advertising objective

a specific communication task that a campaign should accomplish for a specific target audience during a specific periods

Advertising appeal

a reason for a person to buy a product

unique selling proposition

a desirable, exclusive, advertising appeal selected as the theme for a campaign

Appeal types

Fear, sex(attraction), humor

exhibit 16.1: Profit, health, admiration, convenience, fun and pleasure, vanity and egotism, environmental consciousness

media evaluation and selection techniques

choose media mix based on

• cost per contract

• reach

• frequency

• characteristics of the target audience

• flexibility of the medium

• noise level

• and life span of the medium

cost per contact (cost per thousand or CPM)

the cost of reaching one member of the target market

cost per click

the cost associated with a consumer clicking on a display of banner ad

reach

the number of target consumers exposed to a commercial at least once during a specific period, usually four weeks

frequency

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

audience selectivity

the ability of an advertising medium to reach a precisely defined market

media schedule

designation of the media, the specific publications or programs, and the insertion dates of advertising

continuous media schedule

a media scheduling strategy in which advertising is run steadily throughout the advertising period, used for products in the later stages of the product life cycle

flighted media schedule

a media scheduling strat in which ads are run heavily every other month or every two weeks to achieve a greater impact with an increased frequency and reach at those times

pulsing media schedule

a media scheduling strategy that uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales periods

seasonal media schedule

a media scheduling strategy that runs advertising only during times of the year when the product is most likely to be used

Public relations

The element in the promo mix that evaluates public attitudes, identifies issues that may elicit public concern, and executes programs to gain public understanding and acceptance

Publicity

an effort to capture media attention, often initiated through press releases that further a corporation’s public relations plans

sponsorship

a public relations strategy in which a company spends money to support an issue. cause, or event that is consistent with corporate objectives, such as improving brand awareness or enhancing corporate image

product placement

PR strat that gets a product, service, or company name to appear in a movie, tv show, radio, magazine, newspaper, video game, or commercial, on the internet, or at special events

crisis management

a coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable events

sales promotion

mktg communication activities other than advertising, personal selling, and pr in which short term incentive motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering price or adding value

Trade sales promotion

promotion activities directed to members of the marketing channel such as wholesalers and retailers

consumer sales promotion

promo activities targets to the ultimate consumer market

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

Coupon

a certificate that entitles a consumers to an immediate price reduction when the product is purchased

rebate

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 of the promoted productt

Frequent Buyer program

a loyalty program in which loyal customers are rewarded for making multiple purchases of a particular good or service

loyalty marketing program

a promo program designed to build long term, mutually beneficial relationships between a company and its key consumers

sampling

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

point of purchase (POP) display

a promo display set up at the retailers location to build traffic, advertise the product, or induce impulse buying

Advertising response function

a phenomenon in which spending for advertising and sales promotion increases sales or market share up to a certain level but then produces diminishing returns

Marketers struggle to optimize ad spend so they can get the best return based on their investment

Use data to model relationship btw marketing effort and sales

Market mix modeling

Depending in type of model and underlying relationship between effort and sales identify diff response functions or diff shaped curves

Linear, concave, s-shaped, convex

Advertising online caution

51% of audience reached were non target audience (half the ad spend online wasted)

“Half my advertising spend is wasted, trouble is idk which half” John Wanamaker

Improving public relations

• think before you speak

• Consider who you might offend

• Consult pr counsel before making strong statements

• Stay on top of current issues and tread softly

• Be ready to defend yourself or apologize

• Avoid coloful metaphors, tend to be very memorable