Chapter 16


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  • This is a reinforcement ad whose purpose is to assure current users that they made the right choice.
  • Reminder institutional advertising brings the company or product category to the attention of the target market again. In this case, the ad reminds readers that diamonds may be a good anniversary gift.
  • Notes: Advantages and disadvantages of major advertising media are summarized in Exhibit 15.5. The following slides show a close-up of each media type.
  • On Line What kind of information do you need to buy radio advertising? has a full page of resources on the radio industry. Visit the site and follow some of the links. Explain how effective radio would be as a medium for advertising a) a new restaurant, b) a car, and c) a real estate agent.
  • On Line Fox Network ABC What kind of advertising is done on the Fox Network’s Web site? Compare this with the site for ABC. What differences do you notice? Why do you think a television network would choose not to sell ad space on its Web site?
  • On Line Flash Banner Design Rather than create specialty banners, companies can order stock banner ads from and customize them to fit their needs. Compare the ad prices and quality at Bannerite and Flash Banner Design.
  • Notes: Marketing managers plan public relations campaigns that fit into the overall marketing plans and focus on targeted audiences.
  • Chapter 16

    2. 2. TYPES OF ADVERTISEMENTS <ul><li>Advertising – Definition? </li></ul>Two types 1) Product Advertisements Purpose is a) Pioneering (informational) b) Competitive (compare to others) c) Reminder (refresh memory & validate usage)
    3. 3. Tums - What is the type and purpose of this ad?
    4. 4. Dial Soap What is the type and purpose of this ad?
    5. 5. TYPES OF ADVERTISEMENTS 2) Institutional Advertisements <ul><li>Purpose is </li></ul><ul><li>a) Advocacy (state company position on a cause) </li></ul><ul><li>b) Pioneering (state what the company does) </li></ul><ul><li>c) Reminder (reinforce & promote company) </li></ul>Can advertise a company or an entire industry
    6. 6. Got Milk? What is the type and purpose of this ad?
    7. 7. The Wall Street Journal What is the type and purpose of this ad?
    8. 8. Designing the Advertisement Often used in combination <ul><li>Message Appeal </li></ul><ul><li>Fear Appeal – avoid a negative experience </li></ul><ul><li>Sex Appeals – increase the attractiveness of the user </li></ul><ul><li>Humorous Appeal – use will be fun and exciting </li></ul>
    9. 9. Selecting the Right Advertising Media Cost per thousand Reach Frequency Audience Selectivity The cost of reaching a thousand people or households at least once The number of different people exposed to an advertisement at least once The number of times an individual is exposed to a message The ability of an advertising medium to reach a precisely defined market.
    10. 10. Traditional Media Choices <ul><li>Yellow Pages </li></ul><ul><li>Direct Mail </li></ul><ul><li>Magazines </li></ul><ul><li>Newspapers </li></ul><ul><li>TV </li></ul><ul><li>Internet </li></ul><ul><li>Outdoor </li></ul><ul><li>Radio </li></ul>
    11. 11. U.S. advertising expenditures, by category (in millions of dollars) Alternative Media choices???
    12. 12. Newspapers Advantages <ul><li>Year-round readership </li></ul><ul><li>Geographic selectivity </li></ul><ul><li>Immediacy </li></ul><ul><li>High individual market coverage </li></ul><ul><li>Short lead time </li></ul>Disadvantages <ul><li>Limited demographic selectivity </li></ul><ul><li>Little color </li></ul><ul><li>May be expensive </li></ul><ul><li>Low pass-along rate </li></ul><ul><li>Clutter </li></ul><ul><li>Mass market medium </li></ul>
    13. 13. Magazines <ul><li>Good reproduction </li></ul><ul><li>Demographic selectivity </li></ul><ul><li>Regional/local selectivity </li></ul><ul><li>Long advertising life </li></ul><ul><li>High pass-along rate </li></ul>Advantages <ul><li>Higher cost per contact </li></ul><ul><li>Long-term advertiser commitments </li></ul><ul><li>Slow audience build-up </li></ul><ul><li>Limited demonstration capabilities </li></ul><ul><li>Lack of urgency </li></ul><ul><li>Long lead time </li></ul>Disadvantages
    14. 14. Radio Advantages <ul><li>Selectivity and audience segmentation </li></ul><ul><li>Immediate and portable </li></ul><ul><li>Geographic flexibility </li></ul><ul><li>Entertainment carryover </li></ul><ul><li>Short-term ad commitments </li></ul>Disadvantages <ul><li>No visual treatment </li></ul><ul><li>Short advertising life </li></ul><ul><li>High frequency to generate retention </li></ul><ul><li>Commercial clutter </li></ul><ul><li>Background distractions </li></ul>
    15. 15. Television Advantages <ul><li>Wide, diverse audience </li></ul><ul><li>Low cost per thousand </li></ul><ul><li>Creative and demonstrative </li></ul><ul><li>Immediacy of messages </li></ul><ul><li>Entertainment carryover </li></ul><ul><li>Demographic selectivity with cable </li></ul>Disadvantages <ul><li>Short life of message </li></ul><ul><li>Expensive with high campaign cost </li></ul><ul><li>Little demographic selectivity with network </li></ul><ul><li>Long-term advertiser commitments </li></ul><ul><li>Long lead times </li></ul><ul><li>Clutter </li></ul>
    16. 16. Outdoor Media Advantages <ul><li>High exposure frequency </li></ul><ul><li>Moderate cost </li></ul><ul><li>Flexibility </li></ul><ul><li>Geographic selectivity </li></ul><ul><li>Broad, diverse market </li></ul>Disadvantages <ul><li>Short message </li></ul><ul><li>Lack of demographic selectivity </li></ul><ul><li>High “noise” level </li></ul>
    17. 17. Internet <ul><li>Fast growing </li></ul><ul><li>Ability to reach narrow target audience </li></ul><ul><li>Short lead time </li></ul><ul><li>Moderate cost </li></ul>Advantages <ul><li>Difficult to measure ad effectiveness and ROI </li></ul><ul><li>Ad exposure relies on “click through” </li></ul><ul><li>Not all consumers have access to internet </li></ul>Disadvantages
    18. 18. Scheduling the Promotion Continuous Media Schedule Flighted Media Schedule Pulsing Media Schedule Seasonal Media Schedule Advertising is run steadily throughout the period. Yellow Pages Advertising is run heavily every Thursday or month end. Movies Advertising combines continuous scheduling with flighted. Advertising is run only when the product is likely to be used. Lawnmowing
    19. 19. PUBLIC RELATIONS Evaluates public attitudes Identifies issues of public concern Executes programs to gain public acceptance The Role of Public Relations
    20. 20. FUNCTIONS OF PUBLIC RELATIONS Press Relations Product Publicity Corporate Communication Public Affairs Lobbying Employee and Investor Relations Crisis Management
    21. 21. Not as commonly used, but very effective and becoming very popular ADDITIONAL ADVERTISING CHOICES Infomercials Product Placement Cooperative Advertising
    22. 22. Advertising <ul><ul><li>Advertising is any impersonal, one-way mass communication about a product or organization that is paid for by a marketer . </li></ul></ul>
    23. 23. Product Advertisements <ul><ul><li>Product advertisements are advertisements that focus on selling a specific good or service the company offers. </li></ul></ul>
    24. 24. Institutional Advertisements <ul><ul><li>Institutional advertisements are advertisements designed to build goodwill and an image for an organization without focusing on any one product the company makes. </li></ul></ul>
    25. 25. Infomercials <ul><ul><li>Infomercials are program-length (30-minute) advertisements that take an educational approach to communication with potential customers. </li></ul></ul>
    26. 26. Product Placement <ul><ul><li>Product placement is a sales promotion tool that uses a brand-name product in a movie, television show, video, or a commercial for another product. </li></ul></ul>
    27. 27. Cooperative Advertising <ul><ul><li>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. </li></ul></ul>