MKGT 2080 Chapter 18 McGraw Hill Connect

advertising

a paid form of communication delivered through media from an identifiable source about an organization, product, service, or idea designed to persuade the receiver to take some action now or in the future

what has made the job of advertisers far more difficult?

the increasing number of communication channels and changes in consumers media usage

the success of an ad program depends on how well the advertisers can do what?

identify its target audience

planning and executing an ad campaign STEP 1

identify target audience

planning and executing an ad campaign STEP 2

set advertising objectives

advertising plan

a subsection of the firm's overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the advertising campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successful

pull strategy

the goal is to get consumers to pull the product into the marketing channel by demanding it

push strategies

designed to increase demand by focusing on wholesalers, retailers, or salespeople

all advertising campaigns aim to achieve what certain objectives?

to inform, persuade, and remind customers

informative advertising

communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase

examples of informative advertising

upcoming sales events or the arrival of new merch

persuasive advertising

communication used to motivate consumers to take action

when does persuasive advertising occur?

growth and early maturity stages of the PLC when competition is most intense

reminder advertising

communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle

reminder advertising relies on your...

top-of-mind awareness

list the focus of advertisements

product-focused advertisements

institutional advertisement

product-focused advertisements

used to inform, persuade, or remind consumers about a specific product or service

institutional advertisement

promotes a company, corporation, business, institution, or organization

public service advertising (PSA)

- category of institutional advertising

- focus on public welfare; generally sponsored by non-profits, civic groups, etc.

- focus is for betterment of society

social marketing

the application of marketing principles to a social issue to bring about attitudinal and behavioral change among the general public or a specific population segment

planning and executing an ad campaign STEP 3

determine the advertising budget

what are the 3 steps in determining the advertising budget?

1. firms must consider the role that advertising plays in attempt to meet their overall promo. object

2. ad expenditures vary over the course of the product life cycle

3. nature of the market and the product influence the size of ad budgets and amount of money spent on advertising

planning and executing an ad campaign STEP 4

convey the message

what are the four parts of conveying the message?

- the message

- the appeal

- informational appeals

- emotional appeals

unique selling proposition (USP)

the common theme or slogan in an advertising campaign

informational appeals

help consumers make purchase decisions by offering factual information that encourages consumers to evaluate the brand favorably on the basis of the key benefits it provides

emotional appeals

aims to satisfy consumers' emotional desires rather than their utilitarian needs

what is the key to a successful emotional appeal?

the use of emotion to create a bond between the consumer and the brand

planning and executing an ad campaign STEP 5

evaluate and select media

media planning

the process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience

media mix

the combination of the media used and the frequency of advertising in each medium

media buy

generally the largest expense in the advertising budget

what are the two types of media?

mass and niche

mass media

forms of communication, such as billboards, newspapers, magazines, radio, and television that reach large numbers of anonymous audience members

niche media

focused and generally used to reach narrower segments, often with unique demographic characteristics or interests

each communication medium varies in its...

reach and frequency

effectiveness of media mix =

GRP

advertising schedule

specifies the timing and duration of advertising

what are the three types of advertising schedules?

continuous

flighting

pulsing

continuous schedule

runs steadily throughout the year

ex. tide pods

flighting schedule

implemented in spurts, with periods of heavy advertising followed by periods of no advertising

ex. sunscreen

pulsing schedule

increasing ads during certain periods

ex. airlines, hotels, or rental companies, etc.

planning and executing an ad campaign STEP 6

create advertisements

what occurs during the creation of advertisments?

the message and appeal are translated creatively into words, pictures, colors, and/or music

the execution style for the ad will dictate...

the type of medium used to deliver the message

when using multiple media to deliver the same message, advertisers must...

maintain consistency across styles

what are the objectives of an ad?

- the targeted customer segment(s)

- the product or service value proposition

- the unique selling proposition

- how the ad will be coordinated with other IMC elements

headline

the large type in an ad that is designed to draw attention

subhead

- a smaller headline

- provides more info about what it is selling

-should be short with simple words

body copy

- represents the main text portion of the ad

- used to build on the interest generated by the visual and headlines

- explains more in-depth

brand elements

identify the sponsor of the ad, typically through a logo and a unique selling proposition

in the end, the execution style must match the...

medium and objectives

planning and executing an ad campaign STEP 7

assess impact using marketing metrics

the effectiveness of an advertising campaign must be assessed before, .....

during, and after

pretesting

assessments performed before an ad campaign is implemented to ensure that the various elements are working in an integrated fashion and doing what they are intended to do

tracking

monitoring key indicators, such as daily or weekly sales volume, while the advertisement is running to shed light on any problems with the message or the medium

post-testing

the evaluation of the campaign's impact after it has been implemented

what are the other influences that influence purchase behavior and attitudes?

- level of competitor's advertising

- economic conditions in the target market

- sociocultural changes

- in-store merch availability

- the weather

lift

additional sales caused by advertising

in the U.S. the regulation of advertising involves a...

complex mix of formal laws and informal restrictions designed to protect consumers from deceptive practices

the primary federal agencies that regulate advertising activities are...

- federal trade commission (FTC)

- federal communications commission (FCC)

- food and drug administration (FDA)

puffery

legal exaggeration

public relations activities support other promo efforts by...

generating free media attention and general goodwill

cause-related marketing

commercial activity in which businesses and charities form a partnership to market an image, a product, or a service for their mutual benefit; a type of promotional campaign

public relations (PR)

involves managing communications and relationships to achieve various objectives, such as building and maintaining a positive image of the firm, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media

event sponsorship

occurs when corporations support various activities, usually in the cultural or sports and entertainment sectors

sales promotions

special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of-purchase displays.

what are the types of sales promotion?

- coupons

- deals

- premiums

- contests

- sweepstakes

-samples

- loyalty programs

coupons

- offer a discount on the price of specific items when they're purchased

- used to stimulate demand

deal

- refers generally to a type of short-term price reduction that can take several forms

- encourage customers to try a product because they lower the risk for consumers by reducing the cost of the good

- can alter perceptions of value

premium

- offers an item for free or at a bargain price to reward some type of behavior, such as buying, sampling, or testing

- build goodwill among consumers, who often perceive high value in them

contest

- refers to a brand-sponsored competition that requires some form of skill or effort

- 34% of new social media fans get acquired through this

sweepstakes

- a form of sales promotion that offers prizes based on a chance drawing of entrants' names

- key benefit: encourage current consumers to consume more if it appears inside the packaging or with the product

sampling

- offers potential customers the opportunity to try a product or service before they make a buying decision

- one of the most costly sales promo tools but also one of the most effective

loyalty programs

- specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time

- encourage customers to increase their engagement and purchases from a given firm

- expensive

point-of-purchase (POP) displays

- merchandise displays are located at the point of purchase, such as at the checkout counter in a supermarket

- valuable because they increase product visibility and encourage trail

rebates

- a particular type of price reduction in which a portion of the purchase price is returned by the seller to the buyer in the form of cash

- value because they attract consumers and therefor stimulate sales

product placement

- a public relations strategy that involves getting a product, service, or company name to appear in a movie, television show, radio program, etc.

- increase visibility

- ex. Stranger Things Eggo Waffle

when using sales promotion tools, you must be...

careful

the goal of any sales promo is to...

create value for both the consumers and the firm

sales promo as well as advertising can generate both...

long-term and short-term effects