Ch.16 Advertising, Sales Promotions, and Public Relations

Product vs. Institutional Advertising

Product: ads based on a good or service. Uses pioneering, competitive, and reminder tactics.

Institutional: ads made to build brand awareness and goodwill. Uses pioneering, competitive, reminder, and advocacy tactics. Usually focuses on Publicity as the mark. communciation

Steps to develop, execute, and evaluate ad program

Planning:

target audience

objectives

budget

design ad

develop msg

select media type

schedule

Execute:

prettest

Evaluate:

aided or unaided posttests.

Advantages and disadvantages of ad media

TV: Wide reach, easily perishable

Radio: inexpensive, easily perishable + no visual imagery

Magazine: targets specfiic audience but is time consuming and expensive

Newspaper: Good for local audience but poor coloring (can distort msg) and short life span

Directory: Long term use (available 24/7) but has environmental concerns + high competition

Internet: Interactive but diffcult to measure consumer behavior etc

Out-of-home: frequency is high but msg must be short

Direct Mail: targets specific audience but expensive

Strenghts/Weaknesses of Consumer Sales Promos

Coupons: encourages retail support but delays consumer purchase

Deals: reduces consumer risk BUT also reduces perceived value of goods

Premiums: offers additional merchandising however customers may only pay for the premium

Contests: creates involvement but requires extensive creative thinking

Sweepstakes: encourages repeat purchase, sales drop after sweepstakes

Samples: encourage trial but expensive

Loyalty: creates customer base but expensive to maintain

Display: visibility but difficult to place

Rebates: stimulate demand but easily copied

Product Placement: Positive msg, diff. to control

Trade-Oriented strengths and weaknesses

Allowance/discounts: increase purchase, may change retail ordering patterns

Cooperative: encourages local ads

Salesforce training: increase sales

3 types of appeals

Sex

Fear

Humorous

Who is reponsible for creating text portion of msgs in ads

Copywriters

3 types of ad scheduling

Continuous

Flighting

Pulse

Pretest vs. Posttest

Pretest: determining if msg is being reciprocated before ad launches

Posttest: determining if ad msg was taken correctly through aided and unaided recall