Chapter 16 [Advertising, Public Relations, and Sales Promotion]

16-1 (The Effects of Advertising) 16-2 (Major Types of Advertising) 16-3 (Creative Decisions in Advertising) 16-4 (Media Decisions in Advertising) 16-5 (Public Relations) 16-6 (Sales Promotion)

Measured Media Ad Spending

Network and cable TV, newspapers, magazines, radio, outdoor, and internet (though
paid search and social media are not included). Used for mass communication.

Unmeasured Media Ad Spending

Direct marketing, promotions, co-op, coupons, catalogs, product placement, and event marketing.

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.

Institutional Advertising

A form of advertising designed to enhance a company’s image rather than promote a particular product.

• Advocacy Advertising.

Product Advertising

A form of advertising that touts the benefits of a specific good or service.

• Pioneering Advertising.

• Competitive Advantage.

• Comparative Advantage.

Advocacy Advertising

A form of advertising in which an organization expresses its views on controversial issues or responds to media attacks.

Pioneering Advertising

A form of advertising designed to stimulate primary demand for a new product or product category.

• Heavily used during the introductory stage of the product life cycle to inform and create interest among consumers.

• Offers consumers in-depth information about the benefits of the product
  class.

Competitive Advertising

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

• In the growth phase, promotion often focuses less on being informative and appeals more to emotions.

• Advertisers focus on:

  • Showing subtle differences between competitive brands.

  • Building recall of a brand name.

  • Creating a favorable attitude toward the brand.

Comparative Advertising

A form of advertising that compares two or more specifically named or shown competing brands on one or more specific attributes.

• Some advertisers use comparative advertising with their own brands.

• Products experiencing slow growth or those entering the marketplace
  against strong competitors are more likely to employ comparative claims in their advertising.

Advertising Campaign

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

• Before creative work can begin on an advertising campaign, it is important
  to determine what goals or objectives the advertising should achieve.

Advertising Objective

A specific communication task that a campaign should accomplish for a specified target audience during a specified period.

• Once objectives are defined, creative work can begin on the advertising
  campaign.

Advertising Appeal

A reason for a person to buy a product.

• Advertising appeals are based on findings from data analytics and typically play off consumers’ emotions or address some need or want consumers have.

• Criteria for evaluation of an appeal include desirability, exclusiveness, and
  believability.

• Appeals are often quite general, thus enabling the firm to develop several
  subthemes or mini-campaigns using advertising, sales promotion, and social media.

Unique Selling Propositions

A desirable, exclusive, and believable advertising appeal selected as the theme for a campaign.

Profit (Common Advertising Appeals)

Appliances that promote energy efficiency.

Health (Common Advertising Appeals)

Products that appeal to an individual’s wellbeing.

Admiration (Common Advertising Appeals)

Ads that utilize celebrity spokespeople.

Fear (Common Advertising Appeals)

Vehicles that discuss safety features for the prevention of an accident.

Convenience (Common Advertising Appeals)

Ready-to-eat meals and delivery services that promote speed and ease.

Fun and Pleasure (Common Advertising Appeals)

Experiences and vacations that foster good times.

Vanity and Egotism (Common Advertising Appeals)

Cars or clothing that are expensive or allow an individual to stand out from the crowd.

Environmental Consciousness (Common Advertising Appeals)

Products made from recycled materials or reduce the usage of natural resources.

Medium

The channel used to convey a message to a target market.

Media Planning

The series of decisions advertisers make regarding the selection and use of media, allowing the marketer to optimally and cost-effectively communicate the message to the target audience.

Cooperative Advertising

An arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer’s brand.

Newspaper

Advantages:

• Geographic selectivity and flexibility; short-term advertiser commitments; news value and immediacy; year-round readership; high individual market coverage; co-op and local tie-in availability; short lead time.

Disadvantages:

• Little demographic selectivity; decreasing readership; limited color capabilities; low pass-along rate; high cost per reader.

Magizines

Advantages:

• Good reproduction, especially for color; demographic selectivity; regional
  selectivity; local market selectivity; relatively long advertising life; high pass-along rate.
  

Disadvantages:

• Long-term advertiser commitments; slow audience buildup; limited demonstration capabilities; lack of urgency; long lead time; can be expensive for good placement.

Cost per contact (also referred to as cost per thousand or cost per mille [CPM])

The cost of reaching one member of the target market:

• Enables an advertiser to compare the relative costs of specific media vehicles.

• Advertisers pick the vehicle with the lowest cost per contact to maximize
  advertising punch for the money spent.

Cost Per Click

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

• Marketers pay only for “engaged” consumers who opt to click on an 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.

• A matter of matching the advertising medium with the product’s target market.

Flexibility

Ability to schedule or alter an ad in a short amount of time.

Noise Level

The amount of distraction experienced by the target audience in a medium.

Life Span

How long the marketing message lasts.

Media Schedule

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

• Four types of media schedules include continuous media schedule, flighted media schedule, pulsing media schedule, and seasonal media schedule.

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 strategy 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.

• Research suggests that continuous schedules are more effective than flighted ones at driving sales through television advertisements.

Public Relations

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

• A vital link in a forward-thinking company’s marketing communication mix.

• Marketing managers plan solid public relations campaigns that fit into overall marketing plans and focus on target audiences.

• Strives to maintain a positive image of the company in the eyes of the public.

• The concept of earned media is based on public relations and publicity.

Publicity

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

Product Placement

A public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, magazine, newspaper, video game, video or audio clip, book, or commercial for another product, on the internet, or at special events.

• Reinforces brand awareness and creates favorable attitudes.

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.

• The biggest reason for the increasing use of sponsorships is the difficulty of reaching audiences and differentiating a product from competing brands through the mass media.

• Sponsorship issues are quite diverse, but the three most popular are
  education, health care, and social programs.

Experiential Marketing

Involves engaging with consumers in a way that enables them to feel the brand not just read about it.

• Has increased in recent years.

Crisis Management

A coordinated effort to handle all the effects of unfavorable publicity or another unexpected unfavorable event.

Sales Promotion

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

• Usually less expensive than advertising and easier to measure.

• Marketers know the precise number of coupons or coupon codes
  redeemed or the number of contest entries received.

• Usually has more effect on behavior than on attitudes because it gives
  the consumer an incentive to make an immediate purchase.

Trade Sales Promotion

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

• A manufacturer will train an intermediary’s personnel if the product is rather complex.

• A manufacturer may offer retailers free merchandise instead of quantity
  discounts or as payment for trade allowances normally provided through
  other sales promotions.

• Manufacturers can arrange with retailers to perform in-store demonstrations.

• At trade association meetings, conferences, and conventions,
  manufacturers, distributors, and other vendors have the chance to
  display their goods or describe their services to potential customers.

Consumer Sales Promotion

Promotion activities targeted to the ultimate consumer market.

Trade Allowance (Tools for Trade Sales Promotion)

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

Push Money (Tools for Trade Sales Promotion)

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 (Tools for Consumer Sales Promotion)

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

Rebate (Tools for Consumer Sales Promotion)

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

Premium (Tools for Consumer Sales Promotion)

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

• Premiums reinforce the consumer’s purchase decision, increase consumption, and persuade nonusers to switch brands.

Loyalty Marketing Program (Tools for Consumer Sales Promotion)

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

• Through loyalty programs, shoppers receive discounts, alerts about new
  products, and other types of enticing offers.

• Retailers can build customer databases that help them better understand
  customer preference.

Frequent Buyer Program (Tools for Consumer Sales Promotion)

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

Sampling (Tools for Consumer Sales Promotion)

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

• Samples can be directly mailed to the customer, delivered door to door, packaged with another product, or demonstrated or distributed at a retail store or service outlet.

• Sampling at special events is a popular, effective, and high-profile distribution method.

• Online sampling has grown with social media as well.

Point-of-Purchase Display (POP) (Tools for Consumer Sales Promotion)

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

• One big advantage of the POP display is that it offers manufacturers a captive audience in retail stores.

• One study indicates that approximately 82 percent of all retail purchase decisions are made in-store.