Chapter 16- Advertisement, PR, Sales Promotion

Promotional spending on ads is divided into 2 parts...

Measured Media Ad Spending: network/cable TV, newspaper, magazines, radio, outdoor, internet (paid search and SM not included)

Unmeasured Media Ad Spending: direct marketing, promotions, co-op, coupons, catalogs, product placement

The budget for the most successful consumer brands are spent mainly on...

maintaining brand awareness and market share

A new brand with small market share will

spend more on ads and sales promo due to advertising response function and a certain level of exposure is needed to affect purchase habits

Advertising response function

spending for ads and sales promo increases sales/mrkt share up to a certain point, and then produces diminishing returns

Ads affect consumers in many ways, such as...

daily lives of consumers, inform, influence, reinforce positive attitudes towards brands -> loyal customers and higher market share, how cons rank brand attributes

What determines the type of advertising a firm uses

objectives

2 major types of advertising

Institutional Advertising: enhance a co. image rather than promote a product

Product Advertising: a form of advertising that pushes benefits of product

advocacy advertising

form of institutional advertising where co. expresses views on controversial issues or responds to media attacks

3 types of product advertising and what determines which one to use

pioneering, competitive, comparative

Stage of product life cycle

Pioneering Advertising

stimulate primary demand for a new product/product catagory; used most in intro/inform stage; offers in depth info about benefits of the product

Competitive advertising

designed to influence demand for a specific brand; growth phase; focus on showing difference between competitors, building recall of the brand, creating positive attitude toward brand

comparative advertising

Compares 2+ competing brands; products with slow growth and those entering marketing w/ strong competion will use

Advertising Campaign

series of related ads focusing on common theme, slogan, and set of advert appeals

Advertising Objectives

Specific comm task that a campaign should accomplish for a specific target audience during a period; once objectives are defined then start creatives

Consumers buy...

benefits ("Whats in it for me?")

Advertising Appeal

reason for a person to buy a product; based on findings from data, typically play off emotions or address wants/needs

Criteria for eval of an appeal

Desirability, exclusivity, believability

Appeals are

general, enable firm to develope several subthemes using sales promo/ads/SM

Common advertining appeals

Profit, health, fear, admiration, convenience, fun, vanity, egotism, environment

Message execution

the way ad portrays info; should immediately draw viewer in

Common execution styles

slice of life (normal settings), lifestyle (cons, lifestyle fit), spokesperson, fantasy, humor, real/animated product symbols (GEICO), mood/image, demonstration (show benefits), musical, scientific

Medium

the channel used to convey a message to a target market; important choice

Media planning

series of planning advertisers make in terms of selecting media, allowing marketer to convey message good and cost effectively

What do you use to select media types

mrkt analytics

Media types

Newspaper, magazine, radio, TV, Digital, Social, Mobile, Outdoor, alternative

Newspaper

Pro: geographic flexibility, timeliness, mass market exposure

Cons: can't reach narrow market

Cooperative ads

Arrangement which manu and retailer split cost of advertising manu brand

Magazines

Cost per contact = high, cost per potential customer = low

Radio

Pro: hyper local audience segmentation, large out of home audience, low unit/production costs, timeliness, geographic flexibility

Good for cooperative ads

TV

Network TV and independent stations = wide/diverse mrkt

Cable, direct broadcast satelite = highly segmented

Can be expensive

Infomercial

30 min + ad that looks like TV talk show to advertise product; complex info

Digital

Search engine marketing, display ads, social media, email marketing mobile marketing

Use tech to match audience and websites with mrkters looking to purchase ads (MAX ROI)

Advergaming

Placing ads in web, mobile, console, handheld video games

Social advertising

cost effective, many users, LT investment in mind, very time consuming, increase website traffic

Mobile

Fastest growing platform for digi ads, access to customers in real time; customer can easily opt out

Outdoor media

Billboards, skywritting, signs in sports arenas, ads on cars; best for promoting convenience products and local bizz; high exposure frequency, low clutter from comp

Alternative media

shopping carts, computer screen saver, kiosks, pre movie ads, bathroom stalls

Media Mix

combo of media used in promo campaign

Factors of media mix

cost/contact, cost/click, reach, frequency, audience selectivity, flexibility, noise level, life span

Cost/contact

Cost per milli (CPM): cost of reaching 1 consumer

Cost/click

cost of consumer clicking ad; only pay for those who engage in ad

Reach

# of targeted cons exposed to commerical at least once (4 weeks)

Frequency

# of times individual is exposed to given message during period

Audience selectivity

ability to reach a defined market

Flexibility

ability to schedule/alter an ad in short time

Noise level

amount of distraction experienced by target audience in medium

Life span

how long mrkt message lasts

Media schedule

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

4 types of media schedules

continuous, flighted, pulsing, seasonal

Continuous

ad runs stedily through period; used for products in later stages of life cylce; more effective through TV ads

Flighted

ad runs heavy every other month/weeks for greater impact and higher frequency/reach in times

Pulsing

continuous through year and flighted during best sale periods

Seasonal

only during times when product is most likely used

Public relations

part of promo mix that evals public attitudes, identifies issues that may cause public concern; excludes program to gain public understanding

Goal of PR

maintain postitive public image of co. to public

Earned media =

PR and publicity

Publicity

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

Major PR Tools

New product publicity, product placement, sponsorship, experimental mrkting, websites

New product publicity

can get product into public eye, help explain product, WOM, overall exposure to product through news

Product placement

getting a product, service, or co. name to appear in different types of media; enforces brand awareness

Sponsorship

co. spend $ to support issue, cause, or event that is parallel to co. objectives; 3 most popular causes= education, health care, social programs

Experimental marketing

engaging with consumers in a way that enables them to feel the brand not just read; increased popularity over time

Why are websites becoming more popular in PR

intro products, provide info to media, promote existing products, obtain consumer feedback, comm legislative and regulatory info, showcase upcoming events, release financial info, comm w/ customers

Crisis management

coordinated effort to handle all effects of unfavorable publicity or other not good surprise event; publicity not easily controlled

Sales promo is usually target towards one of these two markets

trade sales promo and consumer sales promo

Trade sales promo

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

Consumer sales promo

promo activities targeted to the consumer market

Objectives of promo depend on

behavior of target market

Types of buyers

loyal customers and competitor customers

Loyal customers and how to approach sales promo

buy same product all/most of the same; reinforce behavior, increase consumption (loyalty programs, bonus packs)

Competitor consumers and how to approach sales promo

buy a competitor's product all/most of the time; break loyalty, persuade switch to your brand (samples, sweepstakes, contests, premiums)

Tools for trade sales promotion (push through channel)

sales contests, premiums, point of purchase display, trade allowance, push money

Trade allowance

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

Push money

$ offered to channel intermediates to encourage "push" (sell)

Tools for consumer sales promotion

coupons, rebates, premiums, loyalty market program, contest/sweepstakes, sampling, point of purchase display

Rebate

cash refund for purch during period of time

Premium

extra item offered, usually in exchange for proof of purchase; reinforce cons. decision, increase consumption, persuade non users to switch brands

What do retailers get through loyalty market programs

data base on consumers to better understand market

Point of purchase (POP) display

promo display set up at retail location to build traffic, advertise product, induce impulse buying

Trends in sales promo

increase in social media, email, website promo; online loyalty programs; utilizing sales promos at POP