3. Slide 3Advertising
Why Do We Do Advertisement
• Personal Selling is preferred, because it is so
effective - but, it is expensive sometimes to
contact EVERYBODY this way
• Advertising is not as direct as Personal
Selling, but you can reach a lot of people
4. Slide 4Advertising
Advertisement in Canada has
to be International
• Our Canadian market is very multi-cultural
• Advertising in Canada has to acknowledge the
international aspects in order to be successful
• A large part of the market in Toronto is NOT
from the U.K. so we have to have advertising
that can be understood by other people
5. Slide 5Advertising
The Top 10 Advertisers in Canada
Rank Name
1 General Motors of Canada 113 048.4
2 Procter & Gamble 84 499.5
3 The Thomson Group 70 159.3
4 BCE 53 972.9
5 John Labatt Ltd. 50 036.0
6 Eaton’s of Canada 47 135.9
7 Sears Canada 46 582.1
8 Government of Canada 43 928.7
9 The Molson Companies 42 873.6
10 Chrysler Canada 41 171.5
Revenue
(thousands of dollars)
1993 stats
11. Slide 11Advertising
Competitive Advertising
Tries to get you to take action now - buy the product
now. Immediate Buying
Direct
Indirect
Tries to point out the advantages so if you think
about this product later, you will buy their brand
12. Slide 12Advertising
Advertising that makes direct comparisons
with competitive brands.
Companies used to hesitate to do this, but now they
do it freely.
Sometimes it can backfire and cause the viewer to
NOT want to buy the product - if the comparison is
too harsh eg. Political advertising that is too nasty
Comparative Advertising
13. Slide 13Advertising
Some countries do not allow Comparative
Advertising.
Other countries allow it,,, but,, you have to
prove any statements you make
Comparative Advertising
14. Slide 14Advertising
Reminder Advertising
Done in the Maturity and Decline stage of the
Product Life Cycle. You already know about the
product - they want you to keep using it, even if new
competitors come along.
These ads are usually “soft-sell” and try to be
entertaining.
15. Slide 15Advertising
Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College
Relationship between Advertising and the Product Life Cycle
Pioneering
Competitive
Comparative
16. Slide 16Advertising
Promoting a concept, idea, or
philosophy, or the goodwill of an industry,
company, or organization.
This is closely related to the PR program
of the company
Institutional Advertising
Also called Advocacy advertising
17. Slide 17Advertising
Used often by Japanese conglomerates
that have many types of products
eg.
Hitachi
SONY
Mitsubishi
Panasonic (Matsushita Electronics)
Institutional Advertising
Page 521
18. Slide 18Advertising
The sharing of advertising costs between the
middlemen and retailer and the manufacturer. This
means they will co-operate to display sales
promotion material and share the costs of
commercials and billboards etc.
Co-operative Advertising
Retail Advertising
Retail advertising is the advertising done by stores
that sell “stuff” directly to the consumers.
22. Slide 22Advertising
Positioning
• Remember Chpt 3
• Positioning involves developing a
marketing strategy aimed at a particular
market segment - in order to achieve a
desired position with respect to the
competition, in the mind of the buyer.
• ie. That buyers will think a certain way
about a product - re: its competitor
23. Slide 23Advertising
Positioning
1. By attributes - shampoo (Pantene Pro V)
2. By price - Zeller’s “lowest price is the law”
3. By competitor- Snapple, “We’re #3”
4. By application - Nutrigrain - until we get
beamed to work!
5. By product user - consumer, industry, govt
6. By product class - convenience, shopping,
specialty goods
24. Slide 24Advertising
• Newspapers
• Magazines
• Television
• Radio
• Direct Mail
• Outdoor
Media Selection
? - in which
category is the
most money
spent
25. Slide 25Advertising
• Newspapers - largest share of advertising, 26%
• Magazines - 12%
• Television - 2nd major category, 14%
• Radio - 7%
• Direct Mail
• Outdoor, billboards etc. - 6%
Media Selection
26. Media Advantages Disadvantages
Newspapers Flexibility Short lifespan
Community prestige Hasty reading
Intense coverage Poor reproduction
Reader control of exposure
Co-ordination with
national advertising
Merchandising service
Magazines Selectivity Lack of flexibility
Quality reproduction
Long life
Prestige associated with
some magazines
Extra services
Television Great impact Temporary nature of
Mass Coverage message
Repetition High cost
Flexibility High mortality rate for
Prestige commercials
Evidence of public distrust
Lack of selectivity
Advantages and Disadvantages of the Various Advertising Media
27. Media Advantages Disadvantages
Radio Immediacy Fragmentation
Low cost Temporary nature of
Practical audience message
selection Little research information
Mobility
Outdoor Quick communication of Brevity of the message
Advertising simple ideas Public concern over
Repetition aesthetics
Ability to promote products
available for sale nearby
Direct Mail Selectivity High cost per person
Intense coverage Dependence on quality of
Speed mailing list
Flexibility of format Consumer resistance
Complete information
Personalization
Advantages and Disadvantages of the Various Advertising Media
31. Slide 31Advertising
Planning The Best Message
What should an ad accomplish
1. Gain attention and interest
2. Inform and persuade
3. Lead to the person buying
32. Slide 32Advertising
Planning The Best Message
“Copy Thrust”
the words you say to get the attention
1. Copy - the text
2. Thrust - the intention, direction
35. Slide 35Advertising
The Advertising Campaign
• When developing a mktg comms
strategy, you do not restrict your
plan to just advertising
• Many things are also done such as
direct mailing, PR, special events,
radio, media
36. Slide 36Advertising
• Pretesting
The assessment of an advertisement’s
effectiveness before it is actually used.
• Post-testing
The assessment of advertising copy
after is has been used.
Assessing the Effectiveness of an Advertisement
37. Slide 37Advertising
A marketing specialist firm that assists the
advertiser in planning and preparing its
advertisements.
They have specialists who know all about the
effect of different advertising methods and
can help a company with their strategy.
Advertising Agency
39. Slide 39Advertising
Marketing technique
that associates a
product with the
positive perception of
a type of individual or
role.
(ie. Naya water with
healthy lifeguards)
Role Model Marketing
Sometimes used by companies who cannot afford to
pay a celebrity.