MKT 340

1. © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

2. © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
LO2
Describe the steps used to develop,
execute, and evaluate an advertising
program.
Explain the advantages and
disadvantages of alternative
advertising media.
LO3
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 15, YOU SHOULD BE ABLE TO:
Explain the differences between
product advertising and institutional
advertising and the variations within
each type.
LO1
15-2

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LO4
Discuss the strengths and weaknesses
of consumer-oriented and trade-
oriented sales promotions.
Recognize public relations as an
important form of communication.LO5
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 15, YOU SHOULD BE ABLE TO:
15-3

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WHAT IS THE KILLER APP OF ADVERTISING?
TELEVISION!
15-4

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TYPES OF ADVERTISEMENTS
PRODUCT ADVERTISEMENTS
LO1
 Advertising
• Pioneering
(or Informational)
• Competitive
(or Persuasive)
• Reminder
 Product Advertisements
• Comparative
• Reinforcement
15-5

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Welch’s, Fidelity, and Dove
What is the type and purpose of each advertisement?
LO1
15-6
Welch’s
Web site
Fidelity Ad
Dove Chocolate
Web site

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
TYPES OF ADVERTISEMENTS
INSTITUTIONAL ADVERTISEMENTS
LO1
 Institutional Advertisements
• Advocacy
• Pioneering Institutional
• Competitive Institutional
• Reminder Institutional
15-7
Chevron Video

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Got Milk?
What is the type and purpose of the advertisement?
LO1
15-8
Got Milk?
Web site

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
DEVELOPING THE
ADVERTISING PROGRAM
LO2
 Identifying the
Target Audience
 Specifying the
Advertising Objectives
 Setting the
Advertising Budget
15-9
Doritos Video

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
DEVELOPING THE
ADVERTISING PROGRAM
DESIGNING THE ADVERTISEMENT
LO2
 Message Content
• Informational
Element
• Persuasive
Element
 Types of Appeals
• Fear Appeals
• Sex Appeals
• Humorous Appeals
15-10

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What is the appeal and purpose of the Karl
Lagerfeld ad?
LO2
15-11

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
DEVELOPING THE
ADVERTISING PROGRAM
DESIGNING THE ADVERTISEMENT
LO2
15-12
 Creating the Actual Message
• Celebrity
Spokespeople
• Ideas and
Artwork
• Cost
 K-Swiss 72andSunny
72andSunny Video K-Swiss Ad

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DEVELOPING THE
ADVERTISING PROGRAM
SELECTING THE RIGHT MEDIA
LO2
 Advertising Media
• Maximize Exposure
• Minimize Costs
 Media Planning Goals
15-13

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FIGURE 15-1 Television, direct mail, and
newspapers account for more than 60% of
all advertising expenditures (in $millions)
15-14

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DEVELOPING THE
ADVERTISING PROGRAM
SELECTING THE RIGHT MEDIA
LO2
 Basic Terms
• Reach
• Rating
• Frequency
• Gross Rating Points (GRPs)
• Cost per Thousand (CPM)
= Reach × Frequency
15-15

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USING MARKETING DASHBOARDS
What is the Best Way to Reach 1,000 Customers?
Cost per Thousand (CPM) Impressions
LO2
15-16
CPM = (cost of ad ÷ audience size) x 1000

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FIGURE 15-2 Advertisers must consider the
advantages and disadvantages of the many
media alternatives
15-17

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This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES
LO3
 Television
• Out-of-Home TV
• Online TV (OTV)
15-18

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DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES
LO3
 Television
• Wasted Coverage
• Cable and Satellite TV
• Infomercials
15-19

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DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES
LO3
 Radio
• Satellite Radio • Drive Times
15-20
Walmart
Radio Ad

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DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES
LO3
• Regional Issues
 Magazines
15-21

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DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES
LO3
 Newspapers
• Falling Circulation & Ad Revenue
• New Types of News Organizations
• Online and Mobile
15-22

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DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES
LO3
 Yellow Pages
15-23

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DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES
LO3
• Paid Search
• Rich Media
 Internet
• Banner/Display Ads
• Assessment
15-24

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MAKING RESPONSIBLE DECISIONS
Who is Responsible for Click Fraud?
LO3
 Pay-to-Read
 Click Bots
 Webtipping
15-25

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DEVELOPING THE
ADVERTISING PROGRAM
OTHER MEDIA ALTERNATIVES
LO3
 Outdoor
• Transit
Advertising
• Billboards
15-26

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DEVELOPING THE
ADVERTISING PROGRAM
OTHER MEDIA ALTERNATIVES
LO3
 Other Media
• Placed-Based Media
 Selection Criteria
• Media Habits • Costs
• Product Attributes
15-27

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DEVELOPING THE
ADVERTISING PROGRAM
SCHEDULING THE ADVERTISING
LO3
 Factors to Consider
• Buyer Turnover
• Forgetting Rate
• Purchase Frequency
15-28

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DEVELOPING THE
ADVERTISING PROGRAM
SCHEDULING THE ADVERTISING
LO3
 Approaches
• Continuous (Steady) Schedule
• Pulse (Burst) Schedule
• Flighting (Intermittent) Schedule
15-29

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EXECUTING THE
ADVERTISING PROGRAM
PRETESTING THE ADVERTISING
LO3
 Pretests
• Portfolio Tests
• Theater Tests
• Jury Tests
15-30

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EXECUTING THE
ADVERTISING PROGRAM
CARRYING OUT THE ADVERTISING PROGRAM
LO3
 Full-Service Agency
 Limited-Service Agencies
 In-House Agencies
15-31

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FIGURE 15-A Alternative structures of
advertising agencies used to carry out the
advertising program
15-32

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ASSESSING THE
ADVERTISING PROGRAM
POSTTESTING THE ADVERTISING
LO3
 Posttests
 Aided Recall  Unaided Recall
• Noted
• Read Most
• Seen-Associated
 Attitude Tests
 Inquiry Tests
 Sales Tests
15-33

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FIGURE 15-B Sales promotions can be
used to achieve many objectives
15-34

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SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
LO4
 Consumer-Oriented Sales Promotion
 Coupons
15-35

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SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
LO4
 Deals
15-36

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SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
LO4
 Premiums
• Self-Liquidating: Free Toy in Happy Meal
• Deal-Prone & Value Seeing Consumers
15-37

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SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
 Contests
LO4
15-38
Dorito’s Crash the
Super Bowl

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SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
• Value-Based Prizes
• Experience-Based Prizes
LO4
 Sweepstakes
15-39

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SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
LO4
 Samples
15-40

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SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
LO4
 Loyalty Programs
15-41

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SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
LO4
 Point-of-Purchase Displays
15-42

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SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
LO4
 Rebates
15-43

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SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
 Product Placement
LO4
15-44

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SALES PROMOTION
TRADE-ORIENTED SALES PROMOTION
LO4
 Trade-Oriented Sales Promotion
 Allowances and Discounts
• Merchandise Allowance
• Finance Allowance
• Case Allowance
 Free Goods
 Floor Stock Protection  Freight Allowance
15-45

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SALES PROMOTION
TRADE-ORIENTED SALES PROMOTION
LO4
 Cooperative Advertising
 Training of Distributors’ Salesforces
15-46

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PUBLIC RELATIONSLO5
 Publicity Tools
• News Release
• News Conference
• Public Service
Announcement (PSA)
15-47
Red Cross Videos

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GOOGLE, INC.: THE RIGHT ADS
AT THE RIGHT TIME
VIDEO CASE 15
15-48
Google Video Case

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VIDEO CASE 15
GOOGLE
1. Describe several unique
characteristics about Google
and its business practices.
15-49

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VIDEO CASE 15
GOOGLE
2. What is Google’s philosophy
about advertising? How can less
advertising be preferred to more
advertising?
15-50

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VIDEO CASE 15
GOOGLE
3. Describe the types of online
advertising available today.
Which type of advertising does
Google currently dominate?
Why?
15-51

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VIDEO CASE 15
GOOGLE
4. How can Google be successful
in the display advertising
business? What other areas of
growth are likely to be pursued
by Google in the future?
15-52

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WHAT MAKES A MEMORABLE
TV COMMERCIAL?
IN-CLASS ACTIVITY 15-1

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ICA 15-1
What Makes a TV Ad Memorable?
Gold’n Plump
Ad
Pepsi Ad Apple’s
“1984” Ad

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RECOGNIZING ADVERTISING
SLOGANS/TAGLINES
IN-CLASS ACTIVITY 15-2

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VALASSIS PRODUCT
SAMPLING PROMOTIONS
IN-CLASS ACTIVITY 15-3

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ICA 15-3
Product Sampling
About
Valassis
About
FSIs
Example:
Product Sampling Promotion
Valassis and Nutella
Nutella
Web site

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PRODUCT PLACEMENT IN
MOVIES AND TV
IN-CLASS ACTIVITY 15-4

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62. © 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any manner.
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Advertising
Advertising is any paid form
of nonpersonal communication
about an organization, good,
service, or idea by an identified
sponsor.
15-62

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Product Advertisements
Product advertisements are
advertisements that focus on
selling a good or service and
which take three forms:
(1) pioneering (or informational),
(2) competitive (or persuasive),
and (3) reminder.
15-63

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Institutional Advertisements
Institutional advertisements
are advertisements designed to
build goodwill or an image for an
organization rather than promote
a specific good or service.
15-64

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Infomercials
Infomercials are program-length
(30-minute) advertisements that
take an educational approach to
communication with potential
customers.
15-65

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Pretests
Pretests are tests conducted before
an advertisement is placed in any
medium to determine whether it
communicates the intended message
or to select among alternative
versions of the advertisement.
15-66

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Posttests
Posttests are tests conducted
after an advertisement has been
shown to the target audience to
determine whether it
accomplished its intended
purpose.
15-67

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Consumer-Oriented Sales Promotion
Consumer-oriented sales
promotion consists of sales tools
used to support a company’s
advertising and personal selling
directed to ultimate consumers.
Also called consumer promotions.
15-68

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Product Placement
Product placement is a
consumer sales promotion tool
that uses a brand-name product
in a movie, television show, video
game, or a commercial for another
product.
15-69

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Trade-oriented sales
promotions are sales tools
used to support a company’s
advertising and personal selling
directed to wholesalers,
distributors, or retailers. Also
called trade promotions.
Trade-Oriented Sales Promotions
15-70

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Cooperative Advertising
Cooperative advertising
consists of advertising programs
by which a manufacturer pays a
percentage of the retailer’s local
advertising expense for
advertising the manufacturer’s
products.
15-71

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Publicity Tools
Publicity tools are methods of
obtaining nonpersonal
presentation of an organization,
good, or service without direct
cost, such as news releases,
news conferences, and public
service announcements.
15-72