Marketing 4050 Final (Chapters 10-18)

Consequences of Sales Promotion Abuse

- Overuse of sales promotion leads to: • Loss of a brand's perceived value • Purchase of product being attributed to the promotional incentive and not to a favorable attitude toward the brand • Sales promotion trap or spiral

Refunds and Rebates: Limitations

-Delay and effort to obtain savings is a deterrent. -Rebates perceived as attempts to sell products that are not faring well. -For small refunds, other promotional incentives are more effective. -Dependence on rebates leads to: a. Delayed purchases b. Purchase only if rebates are available.

Concerns about the Increased Role of Sales Promotion

-Devalues the brand. -Encourages consumers to purchase primarily on basis of price/discount. -Leads to companies funding short-term promotions and neglecting advertising

The Future for Newspapers

-Dramatic decline of advertising revenue. -Most effective medium for local advertisers. -Challenges include competition from other advertising media, maintenance and management of circulation, cross-media opportunities, and declining readership. Competition from other media. -Including traditional and digital media. -Newspapers expanding their marketing capabilities and services offered. Circulation. -Newspapers using "subscription-first model" to reduce declining circulation. Attracting and retaining readers. -Biggest readership decline in women and young adults.

Must match media to markets.

-Each medium has unique characteristics. -Each situation and media options must be analyzed.

Factors to Consider

-Effectiveness of the strategies in achieving media objectives. -Media plan's contribution in attaining overall marketing and communications objectives. -How you will measure effectiveness a. Some believe it is difficult to measure ad effectiveness (I'm not one of those people)• b. It isn't impossible to measure c. Find a way and implement it - less-than-perfect measurement is better than no measurement

Media Mix

-Even though a wide variety of media and media vehicles are available to advertisers, it is possible that only one medium and/or vehicle might be employed -The most likely scenario is that a number of media choices will be used -By employing a media mix, advertisers can add more versatility to their media strategies, since each medium contributes its own distinct advantages. -By combining media, marketers can increase coverage, reach, and frequency levels while improving the likelihood of achieving overall communications and marketing goals.

Audience Measures and Measures of Effectiveness

-IAB (Internet Advertising Bureau) guidelines. -Internet-specific measures:•Measures commercial effectiveness in real time.•Facebook Analytics.•Google Analytics. Traditional measures: -Recall and retention. -Surveys -Sales -Tracking -ROI.

Determine the best way to get the advertiser's message to the market

-In the most effective manner -To the largest number of potential customers -At the lowest cost -In the most appropriate creative way

Target Market Coverage

-Match most appropriate media to a market. -Extend media coverage to members of target audience while minimizing waste coverage. a. Waste coverage: Media coverage that reaches people who are not potential buyers and/or users.

Media Objectives

-Media situation analysis should lead to determining specific media objectives -Designed to lead to attainment of communications and marketing objectives - Limited to goals that can be accomplished through media strategies

Objectives of Consumer-Oriented Sales Promotion

-Obtaining trial and repurchase. -Increasing consumption of an established brand. -Defending current customers. -Targeting a specific market segment. -Enhancing integrated marketing communications and building brand equity.

Circulation

-Primary circulation: a. Number of copies distributed to original subscribers or purchasers. b. Determines magazine's rate structure. Guaranteed circulation: a. Publishers give advertisers a rebate if number of delivered magazines falls below the guarantee. b. Figures set safely below average actual delivered circulation. Circulation rate base system: a. Rates based on average circulation below actual circulation delivered but carries no guarantee

The Players in Programmatic

-Publishers -Ad Exchanges: (Mediators that connect publishers and advertisers, assess the price of the ad and the number of impressions) -Advertisers -DMPs: Data Management PlatformStores all the data to help assess and categorize consumers, ads, websites, mobile apps, social, etc. -Demand Side Platform: Helps advertisers buy ad space (inventory) and places bids when the site profile matches the consumer profile the advertiser is targeting. -Supply Side Platform: Helps publishers (website and content owners) manage and sell their ad space (inventory).

Measurement in Promotional Products Marketing

-Specialty advertising has no established ongoing audience measurement system.• -Studies show that: •Promotional products have positive impact on brand image. •Brand impressions and purchase intent improves by adding promotional products to integrated media mix.

Business and health care publications

-Specific professional groups, such as National Law Review for lawyers and Architectural Forum for architects.• -Industrial magazines, targeted to those in various manufacturing and productions industries. Examples are Iron and Steelmaker, Chemical Week, and Industrial Engineering. -Trade magazines, targeted to wholesalers, dealers, distributors, and retailers. Among them are Progressive Grocer, Drug Store News, Women's Wear Daily, and Restaurant Business. -General business magazines, aimed at executives in all areas of business. Examples are Forbes, Fortune, and BusinessWeek. -Healthcare publications, which target dental, medical, nursing, biotechnical sciences, and hospital administration.

The Role of Television as an Advertising Medium

-Television has been the dominant form of entertainment in household for ¾ of a century

Measuring the TV Audience

Audience measures: -Size and composition measured by ratings services. -The sole source of network TV and local audience information is the Nielsen Media Research, which gathers viewership information from a sample of TV homes and then projects it to the total viewing area. Television household: -Home with at least one operable TV or monitor with ability to deliver video. Program rating: -Percentage of TV households in an area that are tuned to a specific program during a specific period. -Ratings point: Represents 1 percent of all television households in a particular area tuned to a specific program. Households using television (HUT): -Percentage of homes in an area where TV is being watched during a specific period. Share of audience -Percentage of households using TV in a specified period that are tuned to a specific program. Total audience: -Total number of homes viewing any five-minute part of a telecast. Nielsen ratings: •Provides daily and weekly estimates of the size and composition of national viewing audiences. •For programs aired on broadcast and major cable networks. •Uses a national sample of approximately 40,000 homes in 56 markets across the country, which are carefully selected to be representative of the population of U.S. households. •Ratings are based on the viewing patterns of the homes, which are measured using the people meter. Data collected by The People Meter includes when the TV is turned on, which channel is viewed, when the channel is changed, when the TV is off, and who is viewing. •The demographic characteristics of the viewers are also in the system, and viewership can be matched to these traits. Local audience information: •Nielsen Station Index (NSI) measures viewing audiences in 210 local markets. -Known as designated market areas (DMAs): Nonoverlapping areas used for planning, buying, and evaluating TV audiences. -Group of counties in which stations located in metropolitan or central area achieve largest audience share. •NSI reports on:-Viewing times and programs watched.-Audience size and demographics. Local audience information: continued •Nielsen measures TV viewership in 56 largest local markets using electronic or metered technology. -Portable People Meter (PPM): Wearable device that tracks exposure to cable and satellite television; terrestrial, satellite, and online radio; cinema advertising; and other placed-based digital media. •Sweeps: Viewing audiences in every local television market are measured at least four times a year. -Measures may be inaccurate as networks often use special programming and promotion efforts to bolster ratings during sweeps. Developments in audience measurement. •Need to move beyond linear TV. -Viewer watches scheduled TV program at the time it's offered and on the channel it's on. •Advertisers have complained for years that measurement needs to change •Nielsen began to measure commercial ratings. -Average viewership of commercials both live and up to three days after ads are played back on DVR—C3. -C7 rating measures up to seven days after live airing Developments in audience measurement. continued •Total Audience Measurement system: -Single-sourced platform that accounts for all viewing across linear TV, DVRs, VOD, and connected TV devices. •Total Use of Television (TUT): -Adds connected TV usage to linear viewing to provide a complete view of TV usage. •Total Ad Ratings report: -Includes measurement of mobile audiences as well as over-the-top audiences that watch television using a streaming device.

BDI Formula to Determine Market Potential

BDI=(% of total brands in Utah/Idaho/% of total U.S population in Utah/Idaho) x100

How to develop a Media Plan

1. Market Analysis 2. Establish Media Objectives 3. Develop and implement media strategy 4. Evaluate and measure effective

Developing the Media Plan

1. Market analysis 2. Establishment of media objectives 3. Develop and implement media strategy 4. Evaluation and measure effectiveness

Factors Important in Determining Frequency Levels

1. Marketing Factors -brand history -brand share -brand loyalty -purchase cycles -usage cycle 2. Message or Creative Factors -message complexity -message uniqueness -new vs continuing campaigns 3. Media Factors -clutter -editorial environment -attentiveness -scheduling

Factors That Make or Break Tracking Studies

1.Properly defined objectives. 2.Alignment with sales objectives. 3.Properly designed measures (for example, adequate sample size, maximum control over interviewing process, adequate time between tracking periods). 4.Consistency through replication of the sampling plan. 5.Random samples. 6.Continuous interviewing (that is, not seasonal). 7.Evaluation of measures related to behavior (attitudes meet this criterion; recall of ads does not). 8.Critical evaluative questions asked early to eliminate bias. 9.Measurement of competitors' performance. 10.Skepticism about questions that ask where the advertising was seen or heard (TV always wins). 11.Building of news value into the study. 12."Moving averages" used to spot long-term trends and avoid seasonality. 13.Data reported in terms of relationships rather than as isolated facts. 14.Integration of key marketplace events with tracking results (for example, advertising expenditures of self and competitors, promotional activities associated with price changes in ad campaigns, introductions of new brands, government announcements, changes in economic conditions).

Positioning Advertising Copy Testing (PACT)

1.Provide measurements that are relevant to the objectives of the advertising. 2.Require agreement about how the results will be used in advance of each specific test. 3.Provide multiple measurements (because single measurements are not adequate to assess ad performance). 4.Be based on a model of human response to communications—the reception of a stimulus, the comprehension of the stimulus, and the response to the stimulus. 5.Allow for consideration of whether the advertising stimulus should be exposed more than once. 6.Require that the more finished a piece of copy is, the more soundly it can be evaluated and require, as a minimum, that alternative executions be tested in the same degree of finish. 7.Provide controls to avoid the biasing effects of the exposure context. 8.Take into account basic considerations of sample definition. 9.Demonstrate reliability and validity.

Budget Considerations

Absolute cost: Actual total cost required to place the message. •Relative cost: Relationship between price paid for advertising time or space and size of audience delivered. -Used to compare media vehicles.

Advantages and Disadvantages of Television

Advantages -Excellent creativity and impact. -Excellent medium to convey emotions. -High coverage and more cost-effectiveness. -High captivity and attention. -Selectivity and flexibility. Disadvantages: -Costs. -Lack of selectivity. -Fleeting message. -Clutter. -Distrust. -Limited viewer attention. a. Zipping: Fast-forward through commercials when playing back a previously recorded program. b. Zapping: Changing channels to avoid commercials.

Advantages and Disadvantages of the Internet and Digital and Social Media

Advantages -Target marketing. -Message tailoring. -Interactive capabilities. -Information access. -Sales potential. -Creativity. -Exposure -Speed. -Timeliness. -Measurability Disadvantages• -Clutter. -Potential for deception. -Privacy -Irritation.

Radio Characteristics Adv/Dis adv

Advantages •Cost and efficiency. •Receptivity. •Selectivity. •Flexibility. •Mental imagery. •Image transfer: -Images of a TV commercial implanted into a radio spot. •Integrated marketing opportunities. Disadvantages: -Creative limitations. -Fragmentation. -Difficult buying procedures. -Limited research data. -Limited listener attention.• -Competition from digital media. -Clutter.

Adv. and disadvantages of Out of Home Media

Advantages of OOH: •Wide coverage of local markets. •Frequency. •Geographic flexibility. •Creativity. •Ability to create awareness. •Efficiency. •Effectiveness. •Production capabilities .•Timeliness. Disadvantages of OOH: •Waste coverage. •Limited message capabilities. •Wearout. •Cost. •Measurement problems. •Image problems.

Adv. and disadvantages of transit advertising

Advantages of transit advertising: •Exposure. •Frequency. •Cost. Disadvantages of transit advertising: •Reach. •Mood of the audience.

Advantages and Disadvantages of Corporate Advertising

Advantages: -Excellent vehicle for positioning the firm. -Takes advantage of benefits derived from public relations. -Reaches a selected target market. Disadvantages: -Questionable effectiveness. -Raises questions of constitutionality and ethics.

Advantages of Couponing

Advantages: •Appeals to price-sensitive customers. •Does not require retailers' cooperation. •Reduces consumer's perceived risk associated with trial of new brand. •Encourages repeat purchase. •Helps coax users to trade up to more expensive brands.

Miscellaneous Other Media Adv/Dis Adv

Advantages: •Awareness and attention. •Cost efficiencies. •Targeting. Disadvantages: •Irritation. •Wearout.

Refunds and Rebates: Advantages

Advantages: •Consumers are very responsive. •Create new users. •Encourage brand switching or repeat purchase behavior. •Perceived price reduction for consumers who plan to redeem but don't. •Well-promoted, high-value rebate can increase sales significantly.

Advertising in Movie Theaters Adv/Dis adv

Advantages: •Exposure. •Emotional attachment. •Cost. •Attention. •Clutter. •Proximity. •Segmentation. •Quality. •Integration. Disadvantages: •Irritation. •Cost. •Often not near point of purchase, depending on category.

Promotional Products Marketing Adv/Dis adv

Advantages• -Selectivity. -Flexibility. -Frequency. -Cost. -Goodwill. -High recall. -Supplementing other media. Disadvantages: -Image. -Saturation. -Lead time. -Reach

Programmatic advertising (also called Real Time Bidding (RTB) uses technology to automate media buying:

Advertisers bid in real-time to reach a specific audience, and the highest bidder wins the ad impressions that are up for auction—i.e., the winner's ads are served on a publisher's website.

CDI Formula to Determine Market Potential

(% of product category sales in Utah/Idaho % of total U.S Population in Utah/Idaho)x100

Index Formula

(Percentage of users in a demographic segment)/(percentage of population in the same segment)x100 -High indexes can be misleading

Advertising on the Internet

Banner ads:• -Create awareness or recognition.• -Enter consumers into contests and sweepstakes. -Fulfill direct-marketing objectives. Sponsorships: -Regular sponsorship: Company pays to sponsor a section of a site. -Content sponsorship: Sponsor provides money in return for name association and participates in providing content. Pop-Ups/Pop-Unders. -Pop-ups: Ads that appear when accessing certain sites. -Pop-unders: Ads that appear underneath the web page and become visible when user leaves the site.• Interstitials: -Ads that appear on screen while waiting for site's content to download. Search -The higher a site appears on search page, the more visitors it will receive. -Organic search results: Appear due to their relevance to search terms. -Nonorganic (paid search results): Placing ads on web pages that display results from search engine queries. a. Pay-per-click.• -Search engine optimization (SEO): Improving volume of traffic to a site from search engine through unpaid results a. Owned media, earned media, and paid media. Behavioral targeting: -Based on advertisers' targeting consumers by tracking their website surfing behaviors. -Retargeting: Ads follow a website user and are displayed on every participating subsequent website the user visits. a. Brands place bids to purchase ad space. Contextual ads: -Ads are determined by the content on web page. -Native advertising: a. Advertiser gains attention by providing valuable content in context of user's experience. Rich media: -Interactive digital media that exhibit dynamic motion. Online commercials: -Advertisements that appear on the Internet. -Pre-rolls: Commercials that appear before the content the user is seeking. Video on demand (VOD):Video clips of entertainment activities also available on the Internet. Webisodes: Short featured films created by advertiser.

Reach vs. Frequency

Because advertisers have budget constraints, they must make trade-offs between reach and frequency. Do they want the message seen and heard by more people (reach), or by fewer people more often (frequency)? -How much reach is necessary? a. Reach: exposing potential buyers to the message. b. High level for new brands/products and at later stages of hierarchy. -What frequency level is needed? a. Frequency: number of times person is exposed to media vehicle in a specified period Establishing reach and frequency objectives. -Unduplicated reach: Whenad is placed on two shows, the total number exposed once. -Duplicated reach: Whenad is placed on two shows, has potential exposure in both (overlap). -Program rating: Measure of potential reach in broadcast industry. Effective frequency. -Based on an analysis of 37 unique studies, it has been indicated that 10 exposures are necessary to maximize recall and attitude toward a brand. Recency. -Recency planning: Short interval reach at minimum frequency levels as close to purchase decision as possible. a. Continuous schedule over one-week period. b. Less targeting to gain exposure to reach as many potential consumers as possible. c.Flash sales and events are a modern example of this strategy.

The Newspaper Audience (circulation)

City zone: City where paper is published and contiguous areas similar in character to the city. Retail trading zone: Market outside city zone whose residents regularly trade with merchants within city zone. All other areas: All circulation not included in the city or retail trade zone. Data on newspaper audience size and characteristics are available through: -Kantar Media SRDS. -Syndicated research studies. -Studies conducted by the papers.

Rough Art, Copy, and Commercial Testing

Comprehension and reaction tests: -Assess if ad conveys intended meaning. -Assess the reaction an ad generates to ensure it is not offensive. Consumer juries: -Use consumers representative of target market to evaluate the probable success of ad. Limitations of consumer jury method. -Consumer may become self-appointed expert. -Number of ads that can be evaluated is limited. -Halo effect: Overall rating is influenced by the judgment on one or few characteristics of the ad. -Preferences for types of advertising may overshadow objectivity. A/B testing: Test two versions of ad or homepage to see which will be more effective.

Concept Generation and Testing

Concept testing: Conducted very early in campaign development to explore consumer's response to a potential ad or campaign. -May just be a headline or rough sketch. -Use focus groups and mall intercepts

Consumer Franchise-Building versus Nonfranchise-Building Promotions

Consumer franchise-building (CFB) promotions •Communicate distinctive brand attributes and contribute to development and reinforcement of brand identity. •Build long-term brand preference. •Help achieve full-price purchases not dependent on promotional offers. •Capable of converting consumers to loyal customers. Nonfranchise-building (non-FB) promotions. -Accelerate purchase decision process and generate immediate increase in sales. -Do not contribute to building brand identity and image. -Merely borrow customers from other brands.

Why the Rapid Adoption of the Internet?

Consumers: -Increased desire for information. -Speed and convenience. -Ability to control flow of information being received. -Ability to conduct e commerce. Advertisers: -Ability to target customers effectively. -Increased accountability of businesses—more direct feedback on value of marketing efforts. Two-way flow.

Types of Trade-Oriented Promotions

Contests and incentives. •Stimulate greater selling effort and support from reseller management or sales personnel. •Push money (pm): Cash payments made directly to sales staff to encourage promotion of product. •Can cause conflict between retail sales personnel and management. Trade allowances: Deal offered to encourage resellers to stock, promote, or display manufacturers' products. •Buying allowances: -Price reduction on merchandise ordered during a fixed period. •Promotional allowances: -Given for performing certain promotional activities in support of manufacturer's brands. •Slotting allowances: -Fees retailers charge for providing a slot or position to accommodate a new product. -Failure fees: Fee charged to cover costs associated with stocking, maintaining inventories, and then pulling product.

Contests and Sweepstakes

Contests: •Consumers compete for prizes or money on basis of skills or ability. •Winners determined by judging entries or ascertaining which entry is closest to predetermined criteria. Sweepstakes: •Promotion where winners are determined purely by chance. •Cannot require proof of purchase as a condition for entry. •Winners chosen by random selection or generation of a number to match those held by entrants. •Games are a popular form of sweepstakes.

Selecting Time Periods and Programs

Cost of TV advertising time varies depending on: -Time of day. -Particular program. TV time periods are divided into dayparts. -Dayparts: Specific segments of a broadcast day. -Advertising rates depend on size and popularity of dayparts.

Cooperative (Co-op) Advertising

Cost of advertising is shared by more than one party. •Horizontal cooperative advertising:-Sponsored by group of retailers providing products or services to the market (e.g., automobile dealers in an auto park). •Ingredient-sponsored cooperative advertising:-Supported by raw materials manufacturers.-Establishes end products that include company's materials and/or ingredients (e.g., DuPont promotes Teflon, 3M promotes Thinsulate). •Vertical cooperative advertising:-Manufacturer pays for portion of the advertising a retailer runs to promote the manufacturer's product.

Coupon distribution

Freestanding inserts (FSIs): -Advertising booklet that contains consumer packaged-goods coupon offers delivered with newspapers (usually in Sunday editions). -Also delivered via direct mail. -Efficient and affordable. -Has led to clutter.

Sampling

Giving some quantity of a product for no charge to induce trial. •Works best when: •Products are of relatively low unit value, so samples don't cost much. •Products are divisible and can be broken into small sizes that reflect the product's features and benefits. •Purchase cycle is relatively short so consumer can soon purchase again. Benefits: •Provides consumers risk-free way to try new products. •Generates much higher trial rates than other sales promotion techniques •Consumers experience the brand directly. Limitations: •Brand must have unique or superior benefits. •Costs can be recovered only if consumers become regular users. •May require larger amounts of product to produce favorable results. Sampling methods: •Door-to-door sampling. •Sampling through the mail.•In-store sampling. •On-package sampling. •Event sampling. •Sampling through the Internet and social media.

IMC Using Social and Other Media

How marketers use social media.• -Drive traffic to one's site.• -Communicate with customers. -Gain brand exposure. Facebook: -Largest of all social networks with 2.3 billion subscribers worldwide. -Controversy over privacy issues. -Companies post information about products, promotions, events. -Advertisers target subsets of Facebook users. a. Based on demographic and geographic data and interests and activities. -Facebook offering new marketing tools. Twitter: -Users send and receive text-based messages up to 280 characters. -Experienced challenges in growth.• -Useful for: a. Direct communication with customers. b. Using words, images and customer engagement to promote brands. c. Reaching specific geographic markets. d. Responding to customer complaints and/or inquiries. Instagram: -Fastest-growing social network. -Effective site for micro-influencers. -Visual content allows companies to increase exposure, showcase products in a creative way, establish visual brand identity, and more. -Many marketers feel Instagram is most engaging of all social networks. Snapchat: -Originally developed as an app with disappearing pictures. -Now, a mix of private messaging and public content, including: a. Brand networks.- b. Publications. c. Live events. -Appeals to younger audience. Pinterest: -Pinboard-style photo-sharing site. -Users create and manage theme-based image collections. -Most attractive to younger females - 81% of their audience is young women -More virtuistic, less competitive than other social media sites. Linkedln: Social network for business professionals. -Over 400 million members. -Offers marketers opportunity to connect to customers with specific interests related to their brand. -Enables companies to promote their business to prospective hires, and recruit. Youtube: -Hosts content for information and entertainment.• -Users upload and share their videos and those placed by others. -Used by marketers as advertising medium or search platform. -YouTube stars and vloggers competing for advertising dollars. -Potential for exposure biggest attraction for marketers. Podcasting:• -Uses Internet to distribute audio/video files for downloading. -Ads or sponsorships. Blogs: -Web-based publications consisting primarily of periodic articles. -Writings of an individual, community, political organization, or corporation. -Reach large or targeted audiences at a small cost. a. Through banner ads, pay per click ads, and/or becoming an affiliate Augmented reality. -There are now thousands of augmented reality (AR) apps that are currently being used by marketers and consumers alike Virtual reality: Met with less success than AR QR codes. -Barcodes used in print ads that direct consumer to information. -Joint effort between Disney and Cargill which used mobile bar codes to entice consumers to buy through a "Wreck-It Ralph" Blu-ray combo pack promotion. -Threatened by near field communication (NFC).»Delivers content through an embedded chip that allows wireless communications by touching the material.»Same function as QR code but with less effort.

Programmatic advertising is a way to automatically buy and optimize digital campaigns.

It replaces human negotiations with machine learning and AI. •It increases efficiency and transparency to both the advertiser and the publisher. •Media is purchased via third parties rather than buying directly from publishers. •It all occurs via real-time auctions where ads are bought at the same as a visitor loads a website.

Sales Promotion Considerations

Marketers must consider: •Short-term impact of promotion and its long-term effect on the brand. •Competitor's likelihood of developing a retaliatory promotion. •Not damaging the brand franchise with sales promotions. •Other aspects of marketing program when faced with declining sales and other problems.

Bonus Packs

Offer consumer extra amount of product at regular price by providing larger containers or extra units. Advantages: •Direct way to provide extra value. •Strong impact on purchase decision at time of purchase. •Effective defense against competitor's promotion or new brand. •May result in larger purchase orders and favorable display space in stores. Limitations: -Require additional shelf space without providing extra profit margins for retailers. -Appeal primarily only to current users and promotion-sensitive consumers.

Media Strategies

Plans of action designed to attain the media objectives.

Coverage

Potential audience that might receive message through a vehicle.

Consumer-Oriented Sales Promotion Techniques

Premiums •Offer of an item of merchandise or service either free or at a low price. •Free premiums: •Small gifts or merchandise included in product package or sent to consumers who mail in request and proof of purchase. (Happy Meal toy) •Self-liquidating premiums: •Require consumer to pay some or all cost of the premium plus handling and mailing costs. •Lower-than-retail prices.

The Five Guiding Principles of Digital Measurement

Principle #1 Move to a "viewable impressions" standard and count real exposures online. Principle #2 Online advertising must migrate to a currency based on audience impressions, not gross impressions. Principle #3 Because all ad units are not created equal, we must create a transparent classification system. Principle #4 Determine interactivity "metrics that matter" for brand marketers, so that marketers can better evaluate the online's contribution to brand building. Principle #5 Digital media measurement must become increasingly comparable and integrated with other media.

Three Forms of Promotion Targeted to Resellers

Product or Program Sales •Awards are tied to the selling of a product; for example: -Selling a specified number of cases. -Selling a specified number of units. -Selling a specified number of promotional programs. New Account Placements •Awards are tied to: -The number of new accounts opened. -The number of new accounts ordering a minimum number of units. -Promotional programs placed in new accounts. Merchandising Efforts •Awards are tied to: -Establishing promotional programs (such as theme programs). -Placing display racks, counter displays, and the like.

The Traditional Definition of PR

Public relations (PR): -Evaluates public attitudes -Identifies policies and procedures of an organization with the public interest. -Executes a program of action to earn public understanding and acceptance.

The Power of Publicity

Publicity more powerful than advertising, sales promotion, and other forms of public relations because: -Publicity is highly credible. -Publicity information may be perceived as endorsed by the medium in which it appears. -Publicity has news value and frequently generates exposure.

Refunds and Rebates

Refunds: •Also known as rebates. •Offers by manufacturer to return a portion of purchase price. •Enhances repeat purchases.

Advantages of Magazines

Selectivity: Ability to reach a specific target audience by: •Interests. •Demographic selectivity. -Editorial content. -Special editions. Geographic selectivity. -Targets particular area. -Purchase ad space in specific geographic editions of national or regional magazines. Reproduction quality. -High-quality visual medium. Creative flexibility. -Gatefolds: A third page ad that folds out into extra-large spread. -Bleed pages: Ad extends to end of the page. -Unusual page sizes and shapes. -Inserts. -Creative space buys. Permanence. -Longer life span -magazines remain in the home longer than any other medium. -Readers are exposed to ads on multiple occasions and can pass magazines along to other readers. Prestige -Brands enhance prestige by advertising in magazines with favorable image and high-quality editorial content. -Advertising for high-reputation brands benefit evaluations of magazines. Consumer receptivity and engagement. -Consumers buy magazines because they are interested in the content, making them more receptive to advertising in magazines than other mediums, with one exception...newspapers. -Primary source of information for consumers for variety of products (automobiles, beauty, clothing, travel, etc). -Engage readers and retain their attention. -Directly related to increased advertising recall and specific actions taken.

Media Planning

Series of decisions involved in delivering promotional message to prospective consumers.

Measurement in Out of Home Media

Sources: •Competitive Media Reports. •Experian Simmons Market Research Bureau and GfK-Mediamark Research & Intelligence (MRI). •Point of Purchase Advertising International. •Outdoor Advertising Association of America (OAAA). •The Digital Signage Association. •American Public Transportation Association (APTA).

Market Testing of Ads (Posttests of Broadcasts commercials - Tracking Studies)

Tracking studies: Measure effects of advertising on awareness, recall, interest, and attitudes toward ad or brand and purchase intentions. -Standard set of questions asked at regular intervals. -Advantage: »Can be tailored to each specific campaign and/or situation.

Conducting Research to Measure Advertising Effectiveness (When to Test)

When to Test •All test measures classified according to when they are conducted. -Pretests: Measures taken before campaign is implemented. -Posttests: Occur after ad or commercial has been in the field. •Variety of pretests and posttests available and each has its own methodology.

Problems with Current Research Methods

•Accomplishing some factors important to good copy testing require more effort. •Most current methods do little more than provide recall scores. •Lab measures—Artificial and vulnerable to testing effects. •Field measures—Result in loss of control.

Branded Entertainment Adv/Dis

•Advantages: -Exposure. -Frequency. -Support for other media. -Source association. -Cost.•Recall. -Bypassing regulations. -Acceptance. -Targeting Disadvantages: •High absolute cost. •Time of exposure. •Limited appeal. •Lack of control •Public reaction. •Competition. •Negative placements. •Clutter.

Out of Home Advertising (OOH)

•Advertising formats found out of the home. -Billboards, street furniture, place-based media, and transit. •Factors contributing to its success: -Increase in number of women in workforce and vehicles on the road. -Ability to remain innovative through technology. •Controversy over billboards (restrictions banning types of ads and locations). Digital out of home (DOOH) media. •Video advertising networks. •Digital billboards. •Place-based advertising.

Place-Based Out of Home Media

•Aerial advertising: -Outdoor advertising incorporating use of airplanes pulling banners, skywriting, and blimps. -Not expensive and reaches specific target markets. •Mobile billboards: -Devices that carry advertisements and are mobile.-Cars, small billboards on trailers. -Costs depend on area and mobile board company's fees.

Measuring the Effectiveness of Corporate Advertising - similar to other forms of advertising (there's no magic)

•Attitude surveys. •Studies relating corporate advertising and stock prices. •Focus group research.

Reasons to Measure Effectiveness

•Avoid costly mistakes. •Evaluate alternative strategies. •Increased advertising efficiency. •Determine if objectives are achieved.

Branded Entertainment

•Blends marketing and entertainment through television, film, music talent, and technology. •Use entertainment media to gain consumers' attention and exposure to products and/or brands. •Brand is woven into story line at high level of integration. •Product placements: -Advertising within another program. -Increasing steadily in both TV and film. •Product integration: -Placement integrated throughout program content and/or script. •Advertainment: -Create video and/or music content to entertain users while advertising products. -Advergames: Online games to promote products. •Content sponsorship. •Ad-supported video on demand (VOD). •Others. Measurement in branded entertainment. •Nielsen Media Research. •Brandchannel Product Placement Watch. •Rentrak.

When properly planned and executed to work together, advertising and sales promotion can have a synergistic effect much greater than that of the individual components.

•Budget allocation—Depends on the specific promotional objectives of the campaign, the market and competitive situation, and the brand's stage in the life cycle - coordinating budgets is critical. •Coordination of ad and promotion themes—Sales promotion tools should communicate a brand's unique attributes or benefits and reinforce the sales message or advertising campaign theme, in order to contribute to the consumer franchise-building for the brand. •Media support and timing—Media support for a sales promotion is critical and should be coordinated with the media program for the ad campaign. By using advertising in conjunction with a sales promotion program, marketers can make consumers aware of the brand and its benefits, thereby increasing their responsiveness to the promotion.

Event sponsorship:

•Company develops sponsorship relations with an event and provides financial support in return for: »Right to display brand name, logo, or advertising message. »Being identified as supporter of the event.•Associate brand with lifestyles, interests, activities. •Consumers welcome sponsors.

Loyalty Programs Limitations

•Consumers drop out as it takes too long to accumulate reward points. •Many require smartphone apps.

Reasons Not to Measure Effectiveness

•Costs involved. •Research problems. •Disagreement on what to test. •Objections of creative department. •Lack of time.

Objectives of Corporate Advertising

•Creating positive image for the firm. •Communicating a firm's views on social, business, and environmental issues. •Boosting employee morale and smoothing labor relations. •Helping newly deregulated industries ease consumer uncertainty and answer investor questions. •Helping diversified companies establish identity for parent firm rather than relying solely on brand names.

Market Testing of Ads (Posttests of Broadcasts commercials - Day after)

•Day-after recall tests—Measure recall of ad day after viewing it. -Known as Burke Day-After Recall test. •Advantages of day-after recall tests: -Natural setting provides more realistic response profile. -Provide norms against which ad performance can be measured. -Persuasive and diagnostics measures also available. •Disadvantages of day-after recall tests: -Have limited samples, high costs, and security issues. -Favor unemotional appeals. -Program content may influence recall. -Respondents aware of test and will be more attentive. -Recall is not a measure of acceptance or predictive of sales.

Problems with contests and sweepstakes

•Do not contribute to consumer franchise building (and may even detract from the brand). •Presence of professional entrants defeats purpose of promotion and discourages some from entering. •Numerous legal considerations.

Specialty Advertising

•Employs imprinted, useful, or decorative products for such as a thank you for patronage, keeping the name of company in front of the customer, and introducing new products or services. They include: -Advertising. -Sales promotion. -Motivational communication. •Always distributed free.

Loyalty Programs Advantages

•Encourage consumers to use products or services on continual basis. •Develop strong customer loyalty. •Help develop customer databases.

Essentials of Effective Testing

•Establish communications objectives. •Use a consumer response model. •Use both pretests and posttests. •Use multiple measures. •Understand and implement proper research.

Limitations of Couponing

•Estimating how many consumers will use coupon and when is difficult. •Less effective than sampling for inducing initial product trial in a short period. •Consumers already using the brand can still use coupons. •Low redemption rates and high costs. •Can result in mis-redemptions.

Measuring the Effectiveness of Sponsorships

•Exposure methods. -Monitor quantity and nature of media coverage obtained for sponsored event. -Estimate direct and indirect audiences. •Tracking measures. -Evaluate awareness, familiarity, and preferences produced by sponsorship based on surveys.

Sales training programs.

•For salespeople to provide consumers with information about features, benefits, and advantages. •Provided through: -Sponsored classes or training sessions. -Ongoing in-house training on regular basis. -Detailed manuals, product brochures, reference manuals, and DVDs.

Trade shows:

•Forum where manufacturers can display products to current and prospective buyers •Demonstrate or introduce new products, generate leads, develop and maintain relationships.

Advertising in Movie Theaters

•Increasing quickly. •Commercials before previews and film. •Ads in lobbies, at kiosks, on product packaging. •$781 million in 2018.

Conducting Research to Measure Advertising Effectiveness (Where to Test)

•Laboratory tests: People brought to a location where they are shown ads and/or commercials. -Testing bias: People may scrutinize ads much more closely than they would at home. •Field tests: Tests under natural viewing situations. -Carried out with realism of noise, distractions, and comforts of home.

Displays and point-of-purchase (POP) materials.

•Many consumers make purchase decisions in the store. •Retailers eliminating displays or wanting more control over them. •Planograms: Configurations of products that occupy a shelf section.

Couponing Trends

•Most effective sales promotion tool for influencing consumers' purchase decisions. •Coupon usage remained high after recent recession. •Marketers use to compete against lower-priced competitors and private-label store brands. •Internet used to distribute coupons. -Coupon.com, Valpak.com, Groupon, Living Social. •Rise of mobile coupons (in the moment with geo-targeting and as a long-term marketing strategy to capture mobile numbers).

Guerrilla Marketing

•Nontraditional method of marketing. •Also known as: -Stealth. -Street. -Buzz. -Ambush. -Viral marketing.

Objectives of Trade-Oriented Promotions

•Obtain distribution for new products. •Maintain trade support for established brands. •Encourage retailers to display established brands. •Build retail inventories.

Loyalty Programs

•Opportunity to accumulate points for continuing to purchase specific brands. •Also referred to as continuity or frequency programs. •Points redeemed for discounts, gifts, prizes, free items .•Used by airlines, hotels, packaged-goods, supermarkets, all types of retailers.

Miscellaneous Other Media

•Parking lot ads. •Gas station pump ads. •Place-based media. •Others.

Market Testing of Ads (Posttests of Broadcasts commercials)

•Persuasive measures. -Evaluates commercial's persuasive effectiveness. •Diagnostics. -Garner viewers' evaluations of ads: »How clearly creative idea is understood. »How well proposition is communicated. •Comprehensive measures. -Different measures obtained through one testing program.

Conducting Research to Measure Advertising Effectiveness (How to Test)

•Positioning Advertising Copy Testing (PACT): Improves the research used in preparing and testing ads by: -Providing a better creative product for clients. -Controlling the cost of TV commercials. •Making Measurement Make Sense: -Joint effort to make digital media measurements comparable to those of traditional media, while still evaluating the unique value of interactivity.

Market Testing of Ads (Posttests of Print Ads - Inquiry)

•Posttests of print ads: •Inquiry tests: Measure advertising effectiveness on basis of inquiries generated from ads. -Run ad in successive issues of same medium. -Spilt-run tests: Variations of ad appear in different copies of same print medium. -Run same ad in different media. •Advantages of inquiry tests: -Implementation is inexpensive. -Provide feedback about general effectiveness of ad or medium used. •Disadvantages of inquiry tests: -Inquiries may not be true measure of the attention-getting or information-providing aspects of ad. -Ineffective for comparing different versions or specific creative aspects of ad.

Market Testing of Ads (Posttests of Print Ads - Recall Tests)

•Posttests of print ads: continued •Recall tests: Attempt to measure recall of specific ads. •Advantages of recall tests: -Ability to assess ad's impact on memory. •Disadvantages of recall tests: -Reader's degree of involvement with product and/or the appeals and visuals may lead to higher-than-accurate recall scores.

Pretesting of Finished Ads

•Pretesting finished print messages: -Portfolio tests: Expose group of respondents to a portfolio consisting of control and test ads. -Limitations: »Factors other than advertising creativity may affect recall. »Ability to recognize the ad when shown may be better measure than recall. •Readability tests: Communications efficiency of the copy in print ad tested without reader interviews. -Flesch formula: Assesses readability of copy by determining the average number of syllables per 100 words. -Limitations: »Copy may become too mechanical. »Direct input from receiver is not available Pretesting finished print messages: continued •New print pretesting measures. -New methodologies involve hybrid measures that measure effectiveness in different ways or in different channels. »Ipsos-ASI Next*Connect. -PTG measures time a respondent spends with print ad or tablet using a hidden camera to track eye movement. -Link uses a comprehensive set of diagnostic questions to evoke viewer reactions to ads. •Pretesting finished broadcast ads: continued •Advantages of theater testing: -Established norms indicate how ad will fare against others tested in same product class. -Brand preference measure is supported by actual sales results. •Disadvantages of theater testing: -Environment is artificial. -Contrived measure of brand preference change is easily recognizable. -Group effect may influence viewer's reaction.

Measuring the Effectiveness of Nontraditional Media

•Print versus online. -Measures effects on memory and purchase behaviors of each medium. •Parking lot-based media. -Measures ad impressions and advertising recall and combines with sales tracking data. •In-store radio and television. -Software from IMS measures effectiveness. •Other media. -Resources available to measure impact of various IMC elements.

Event Marketing

•Promotion that links company or brand to an event. •Promotion where a themed activity is developed to create experiences for consumers and promote product or service.

Promotional Products Marketing

•Promotional medium or method that uses promotional products. •Promotional products marketing is the more up-to-date name for what used to be called specialty advertising, and includes: -Ad specialties. -Premiums. -Business gifts. -Awards. -Prizes. -Commemoratives.

In-Store Media

•Reach shoppers at the place where they buy. •Includes: -In-store ads. -Aisle displays. -Store leaflets. -Shopping cart signage. -In-store TV.

Market Testing of Ads (Posttests of Print Ads - Recognition)

•Recognition method: Determines recognition of print ads and provides involvement readers have with specific ads. -Most common type of posttest of print ads. -Closely associated with GfK-Starch and the Starch Ad Readership Report. •Advantages of recognition method: -Pulling power of aspects of ad can be assessed through control offered. -Effectiveness of competitors' ads can be compared through the norms provided. -Alternative ad executions can be tested. -Readership scores indicate consumers' involvement in ad or campaign. •Disadvantages of recognition method: -False claiming. -Interviewer sensitivities. -Unreliable recognition scores.

Price-Off Deals

•Reduces price of the brand. •Offered on the package through specially marked price packs. •Advantages: -Ensure discounts reach consumers. -Present a readily apparent value to shoppers. -Encourage consumers to purchase larger quantities. Limitations: -Can create pricing and inventory problems. -Appeal primarily to regular users, not new users. -Must adhere to regulations set by Federal Trade Commission.

Audience Information and Research

•SRDS provides complete planning information on nearly all publications via a proprietary database. •Publisher's Information on readers via their own research studies—available as media kits. •Syndicated research studies provide reader information (Simmons, MRI, GfK, etc). •Business Publication Audits provide titles of people who receive publication and industry they work in.

Measuring the Effectiveness of Sales Promotions

•Scanner date captures shoppers' weekly transactions. •Give retailers information about effectiveness of promotions. •Using awareness tracking studies. •Tracking sales during promotional and nonpromotional periods. •Using heat map sensors in store to track customers and gauge traffic patterns.

Market Testing of Ads (Posttests of Broadcasts commercials - Single Source Tracking Methods)

•Single-source tracking methods: Track consumer behavior from television set to supermarket checkout. •Advantages: -Track effects of increased budgets, different versions of ad copy, and sales. -Offer control. •Disadvantages: -Only capture short-term sales effects. -Data highly complicated. -High cost of collecting data.

Conducting Research to Measure Advertising Effectiveness (What to Test)

•Source factors. •Message variables. •Media strategies. Budgeting decisions

Transit Advertising

•Targets people who are exposed to commercial transportation facilities. •Gained popularity due to: -Increased number of women in workforce. -Audience segmentation. -People spending more time outdoors. Types of transit advertising: •Inside cards: -Placed above seats and luggage area inside public transport vehicles. •Outside posters: -Appear on sides, backs, and/or roofs of buses, taxis, trains, and subway and trolley cars. •Station, platform, and terminal posters. -Floor displays, island showcases, and electronic signs that appear in train or subway stations or airline terminals.

Market Testing of Ads (Posttests of Broadcasts commercials - Test Marketing)

•Test marketing—Measure advertising effects in specific test markets before releasing them nationally. •Advantage: -Realism and high degree of control. •Disadvantages: -Time-consuming and expensive. -Competitors may discover and intervene in the process.

Weaknesses Associated with Focus Group Research

•The results are not quantifiable. •Sample sizes are too small to generalize to larger populations. •Group influences may bias participants' responses. •One or two members of the group may steer the conversation or dominate the discussion. •Consumers become instant "experts." •Members may not represent the target market. (Are focus group participants a certain type of person?) •Results may be taken to be more representative and/or definitive than they really are.

Support Media

•Variety of nontraditional channels to deliver communications and promote products and services. •Other names: -Alternative media. -Below-the-line media. -Non-measured media. -Nontraditional media.

Disadvantages of Magazines

-Costs. -Limited reach and frequency due to their audience fragmentation. -Long lead time. -Clutter and competition.

Reasons for the Increase in Sales Promotion

-Growing power of retailers—Manufacturers used to have most of the power, now retailers, through technology, consolidation, and private labeling, have more. -Declining brand loyalty—Consumers are purchasing more on the basis of price, value, and convenience. -Increased promotional sensitivity—Consumers want to save money and respond well to promotions that allow them to do so. -Brand proliferation—The market has become saturated with new products, many of which lack any significant advantages that can be used as the basis of an advertising campaign. Short-term focus - generates immediate sales increases. •Increased accountability to produce results - sales managers are under pressure. •Competition - helps gain competitive advantage (and stem competitor's promotional efforts at the same time). •Growth of digital marketing- and an overall shift away from mass media advertising lends itself to promotional activities.

Radio Characteristics

-Often viewed as old-school. -Primarily local advertising medium. -Broadest mass reach among all media. -Offers advertisers narrow targeting capabilities. -Considered a pervasive medium.

Online Delivery and Multiple Platforms

-Online newspapers preferred mode of reading for many, particularly younger consumers. a. Highly engaged and upscale audience. -Networks help local newspapers sell online ads on their websites to national advertisers. -Newspapers creating a variety of products and engaging consumers across multiple platforms.

Mobile

-Rapid adoption of smartphones and tablets. -Has significant impact on companies' IMC programs. -Tablets led to increases in search behavior, online purchasing, and TV viewing. -Reach potential consumers at almost any time and any place. -Effective for: a. Nearly any industry. b.Mobile search. c.Mobile coupons, sponsorship of data costs, messages, native ads. Disadvantages of Mobile Creative challenges: -Small screens are limiting. Time: -Viewers are on the move. Sharing: -99 percent of mobile device users do not share what they see. Irritation: -As more ads are sent to smartphones and other mobile devices, consumers likely to become irritated.

Varieties of Magazines

-Serve wide range of readers' needs in both consumer and business markets. -More companies advertise in magazines than in any other medium.

Sales Promotion on the Internet

-Tie promotions to websites and other forms of digital media. -Print online coupons.

Geographic Coverage

-Weighting certain geographic areas more than others depending on product. -For instance, it would not be the wisest of strategies to promote skis in those areas where interest is not high—such as southeast United States.

Determining relative costs of media

1. Cost per thousand (CPM): most common CPM= ((Cost of ad space (absolute cost)/Circulation))*cost of ad space x100 2. Cost per ratings point (CPRP): CPRP= Cost of commercial time/program rating 3. Daily inch rate: Newspapers= (Cost of ad space x100)/Circulation 4. Cost per click (CPC): CPC=Cost of ad space/# of clicks 5. Cost per lead (CPL): CPL= Cost of ad space/# of leads 6. Cost per acquisition (CPA): CPA=Cost of ad space/# of new customers

Types of Corporate Advertising

1. Image advertising: -Promotes organization's overall image. -Methods: -General image or positioning ads. -Sponsorships. -Recruiting. -Generating financial support. 2. Event sponsorships: •Sponsoring specific events or causes as part of a marketing strategy. •Builds equity and gains affinity with target audiences. 3. Advocacy advertising: •Spreading ideas and explaining controversial social issues of public importance. •Indirectly supports sponsor's interests. •Issue ads: Sponsored by organization to bring attention to what they consider to be an important issue, like this one from the US Dept of Health & Human Services (HHS). 4. Cause-related advertising: -Linking with charities or nonprofit organizations as contributing sponsors. -Takes time and effort to be successful.

Activities in Media Plan

1. Situation Analysis: Purpose: understand the marketing problem Includes: information on the market, sales trends, the prospect audience, and the current situation surrounding the 4P's 2. Marketing Strategy: Purpose: plan activities to solve one or more of the marketing problems Includes: SMART objectives, identifies "best market" segments & builds on the strategy for each of the 4P's 3. Creative Strategy: Purpose: determine what to communicate through advertisements Includes: how product meets consumer needs, how to position, copy themes, objectives & mandatories (like the number and size of ads)

Methods of Buying Time

1. Sponsorship: -Advertiser assumes responsibility for production and content of the program and the advertising that appears within it. -For example, Procter & Gamble, entered into an agreement with Paramount Television Groups to develop shows for network TV and first-run syndication. -Sponsorships allow a firm to capitalize on the prestige of a high-quality program, to control the number, placement, and content of its commercials. Commercials can be of any length as long as the total amount of commercial time does not exceed network or station regulations. -Allows firm to:-Capitalize on prestige of high-quality program.-Have more control over the shows carrying their commercials. 2. Participations:• -Several advertisers buying commercial time on a program. -How almost 90% of all network advertising time is sold. -Advantages: a. Advertiser has no long-term commitment to program. b. Can adjust expenditures to buy spots that fit within budget. c. Provides greater reach in the media schedule. Disadvantages: a. Advertiser has little control over placement of ads. b. Availability may be limited. 3. Spot announcements: -Purchased from local stations, appear during adjacencies to network programs. -Most often used by purely local advertisers, but can also be bought by companies with no network schedule or by large advertisers that use both network and spot advertising. -Adjacencies: Time periods adjacent to network programs.

Ten Questions for Evaluating PR Plans

1.Does the plan reflect a thorough understanding of the company's business situation? 2.Has the PR program made good use of research and background sources?3.Does the plan include full analysis of recent editorial coverage? 4.Do the PR people fully understand the product's strengths and weaknesses?5.Does the PR program describe several cogent, relevant conclusions from the research? 6.Are the program objectives specific and measurable? 7.Does the program clearly describe what the PR activity will be and how it will benefit the company?8.Does the program describe how its results will be measured? 9.Do the research, objectives, activities, and evaluations tie together?10.Has the PR department communicated with marketing throughout the development of the program?

Corporate Advertising

3 types of corporate advertising Designed to promote the firm by: •Enhancing its image. •Assuming a position on a social cause. •Seeking direct involvement in something (advocacy). Controversial because: •Consumers are not interested. •Costly form of self-indulgence .•Belief that the firm must be in trouble.•Perceived as a waste of money.

Social Media Mgmt Tools

Companies provide management services for small, medium, and large companies. -Media management, content development, publishing, monitoring the environment, and more.

Advantages and Disadvantages of Newspapers

Advantages -Market penetration. -Flexibility. -Geographic selectivity. -Reader involvement and acceptance. -Services offered Disadvantages: -Poor reproduction. -Short life span. -Lack of reader selectivity.

Advantages and Disadvantages of Cable

Advantages -Offers selectivity. -Offers chance for narrowcasting. a. Narrowcasting:Reaching very specialized markets. -Low cost. -Flexibility. Disadvantages: -Overshadowed by major networks. -Audience fragmentation. -Lacks penetration in major markets.

Spot and local advertising Adv. vs. Disadv.

Advantages: -Offers flexibility to national advertisers. -Growth in syndication. Disadvantages: -Difficult to acquire - media buyers have to negotiate with multiple reps in multiple markets. -Greater variations in pricing policies and discount structure of individual stations. »Somewhat reduced by station reps: Individuals who act as sales representatives for local stations in dealing with national advertisers. -Subject to more commercial clutter.

Syndication Adv vs. Disadv

Advantages: -Saves money. -Broadens reach for national advertisers. -Targets specific audiences. Disadvantages: -Audiences are often rural and older. -Syndicators do not supply much research information -Requires media buyers to come up with syndication schedule to ensure maximum reach.

Network versus Spot (Adv vs. Disadv)

Advantages: -Simple purchase process—one advertiser deals with one network. -Effective way to reach large audiences. Disadvantages: -Very high cost of advertising on prime time. -Lack of availability of time slots. »Networks reserve at least 10 percent of advertising time for themselves. »Up-front market: Buying period before TV season begins. »Scatter market: Buying period throughout the season.

Advantages and Disadvantages of Publicity

Advantages: •Substantial credibility. •News value. •Significant word-of-mouth. •Perception of media endorsement. Disadvantages: •Lack of control. •Timing. •Accuracy.

Advantages and Disadvantages of PR

Advantages: •Credibility. •Cost. •Avoid clutter. •Lead generation .•Ability to reach specific groups. •Image building. Disadvantage: Potential for incomplete communication process. -Lack of connection between receiver and sender. -Lack of coordination with marketing unit.

The Future for Magazines

Challenges: •Reduced revenue as advertisers shift to digital media. •Difficulty in increasing rates. •Increased cost of paper and ink. •Increased postal rates. •Strong competition from other media. Publishers focused on: •Stronger editorial platforms. -Appeal to interests, lifestyles, and changing demographics. •Circulation management. -Carefully manage costs of attracting and maintaining additional readers or subscribers without increasing rates. •Digital magazines .-Native advertising: Integrates advertising in online publications with the environment and editorial content. -Digital editions of magazines developed specifically for tablets.

Circulation and Readership

Circulation verification. -Alliance for Audited Media (AAM). a. Audits consumer magazines and farm publications. b. Provides data and information critical to evaluating and purchasing media. c. Audits digital replica editions of magazines. Controlled-circulation basis: Copies sent to individuals the publisher believes can influence a company's purchases. Readership and total audience. Pass-along readership: -Primary subscriber gives magazine to another person. -Publication is read in doctors' waiting rooms, on airplanes, etc. Total audience/readership: Calculated by multiplying the readers per copy by the circulation of an average issue.

Purchasing Magazine Advertising Space

Cost elements: -Magazine's circulation.-Size of ad -Ad position in publication. -Particular editions chosen. -Special mechanical or production requirements. -Number and frequency of insertions. Positions available for ads: -First cover: Outside front. -Second cover: Inside front. -Third cover: Inside back. -Fourth cover: Outside back; sold at higher rate than other positions. •Advertising space sold on basis of space units.-Full page, half page, and quarter page. •More colors used, greater the expense. •Advertisers save money through: -Volume discounts—Based on total space purchased within contract year. -Magazine networks: Buy space in a group of publications as a package deal.

Types of Newspapers

Daily newspapers (Star Tribune) .•In cities and larger towns. •Provide detailed coverage of events, issues concerning local area. •Classifications: Morning, evening, or Sunday publications. •Weekly newspapers (Ely Echo). a. In small towns or suburbs. b. Focus on news, sports, and events relevant to local area. c. Appeal primarily to local advertisers. National newspapers (WSJ). •National circulation and editorial content with nationwide appeal. •Appeal to: -Large national advertisers. -Regional advertisers that use specific geographic editions. Special-audience newspapers (Labor Union). •Specialized editorial content. •Published for particular groups. -Labor unions, professional organizations, industries, hobbyists, foreign-language-speaking ethnic groups, religious groups, etc. •Newspaper supplements (USA Weekend). -Magazine-type supplements included by papers primarily with Sunday editions. Display advertising: Uses visual devices in addition to the copy text. Classified advertising:Ads arranged under subheads according to product, service, or offering being advertised. Special ads and inserts: -Government and financial reports and notices. -Public notices of changes in business and personal relationships.• -Preprinted inserts: Printed by advertiser and taken to newspaper to be inserted.

Cable Television

Delivers TV signals through fiber or coaxial wire. -Alternative delivery systems (ADS) such as direct broadcast satellite (DBS). Cable networks and channels have a dual revenue stream: from ads and subscriber fees. Audience fragmentation due to expanded viewing options - good for advertisers who want to target their messaging. The future of cable. -Depends on size and quality of audience cable networks can reach. -Depends on cable's ability to offer programs that attract viewers and subscribers. a. Cable networks now developing high-quality and critically acclaimed programs. b. Cable popular source of sports programming. Challenges: -Cord-cutting and competition from other viewing options such as streaming content.

Developing and Executing the PR Program

Determining relevant target audiences: Internal audiences: People who are connected to a firm with whom the firm communicates regularly. »Employees of the firm. »Stockholders and investors. »Community members. »Suppliers and customers. External audiences: People who are not closely connected with the organization. »Media. »Educators. »Civic and business organizations. »Governments. »Financial groups.

Sales Promotion

Direct inducement that offers extra value or incentive for the product to: •Sales force. •Distributors. •Ultimate consumer. •Primary objective is to create an immediate sale •Extra incentive to buy. -Coupon, price reduction, sweepstakes, rebate, free sample. •Acceleration tool. -Limited-time offers. •Targeted to different parties. -Consumer-oriented sales promotion. -Trade-oriented sales promotion.

Social Media

Electronic communication through which people create online communities.• -Social networking sites: Platforms for networks or social relations. Allow sharing interests, activities, backgrounds, or real-life connections. Motivations for using social media: -To gain. information. -Entertainment. -Remuneration. Who is using social media: -Especially appealing to those between the ages of 18-29

Consumer Magazines

Farm publications: -There are 300 different farming and agricultural publications. -Directed to farmers and their families. -Range from general-interest magazines to specialized agricultural areas. -Not classified with business publications.

Establishing a PR Plan

Four-step process: 1.Define public relations problems. 2.Plan and program. 3.Take action and communicate. 4.Evaluate the program.

Medium

General category of available delivery systems (TV, radio, print, direct, outdoor, digital, mobile, social, etc).

Purchasing Newspaper Space

General versus local rates. •Retail or local advertising rates: -Apply to advertisers that conduct business or sell goods or services within the DMA. -Big discounts. General advertising rates: »Display advertisers outside newspaper's designated market area (DMA). »Any classification deemed to be general in nature. »Rates often 75% higher than those paid by local advertisers. »Not very common. Rate structures - how you buy it. •Column inch. •Standard advertising units (SAUs). •Flat rates: -No discount for quantity or repeated space buys. •Open-rate structure :-Discounts based on frequency or bulk purchases of space. Rate structures - where it runs. •Run of paper (ROP): -Paper can place the ad on any page or in any position it desires. •Preferred positionrate :-Advertisers choose a specific section and/or position on a page. •Combination rates: -Advertisers get discount for using several newspapers as a group.

Publicity

Generation of news about a person, product, or service that appears in broadcast or print media. •Differs from public relations by: -Being a short-term strategy. -Not always being positive. -Not always being controlled or paid by the organization.

To determine how much advertising is necessary to accomplish the advertiser's objectives, marketers rely on ratings (the number of people reached) and use calculations called GRPs and TRPs.

Gross ratings points (GRPs): -GRP = Reach × Frequency -Combines the program rating and the average number of times the home is reached during this period •Target ratings points (TRPs): -Number of people in primary target audience the media buy will reach, and the number of times. -Does not include waste coverage *500-700 GRP is a typical target

Media Plan

Guide for media selection. It requires development of specific media objectives and specific media strategies (plans of action) designed to attain these objectives. Purpose: is to determine the best way to get the advertiser's message to the market. -Aims to find the ideal combination of media to communicate the creative message: -in the most effective manner -to the largest # of potential customers -at the lowest cost -in the most appropriate creative way

Marketing Public Relations Functions

Marketing public relations (MPR): Public relations activities designed to support marketing objectives, including: -Build marketplace excitement before media advertising breaks. -Improve ROI. -Create advertising news where there is no product news. -Introduce product with little or no advertising. -Provide value-added customer service. -Build brand-to-customer bonds. -Influence the influentials. -Defend products at risk and giving consumers a reason to buy

Reach

Measure of the number of different audience members exposed at least once to media vehicle in a specified period.

Network versus Spot

Network advertising. -Spreading messages by purchasing airtime from a television network. a. Television network: Assembles a series of affiliates to which it supplies programming and services. »Affiliates: Allied local TV stations. »NBC, ABC, CBS, FOX, CW, Univision, Telemundo. Networks have affiliates throughout the nation for complete national coverage. Spot advertising: Commercials shown on local TV stations. -Time is negotiated and purchased directly from individual stations. National spot advertising: Nonnetwork advertising done by a national advertiser. Local advertising: Airtime sold to local firms, such as retailers, restaurants, banks, and auto dealers is known as local advertising. Syndication: Syndicated programs: Sold and distributed station by station. Types: -Off-network syndication—Reruns. -First-run syndication—Shows produced specifically for syndication market. -Advertiser-supported or barter syndication—Shows sold to stations in return for portion of commercial time. »Offers both off-network and first-run syndicated programs.

Buying Radio Time

Network radio—Purchased on a network basis using a national network. •Seven national radio networks •More than 100 regional area networks •Many syndicated programs Spot radio provides: •Greater flexibility in selecting markets, individual stations, and airtime (accounts for 20% of all radio time sold) •Ability to adjust message for local market conditions. •Local radio—Purchased from individual stations by local companies.

Audience Information

Nielsen Audio. •Covers nearly 265 local radio markets with two to four ratings reports per year in the Topline Radio Rating. •Because there are so many radio stations, and thus many small, fragmented audiences, the stations cannot support the expense of detailed audience measurement. •The three basic estimates in the report are: -Person estimates: Estimated number of people listening. -Rating: Percentage of listeners in the survey area population -Share: Percentage of total estimated listening audience. Nielsen Continued. Average quarter-hour (AQH) figure: Average number of people estimated to have listened to station for a minimum of five minutes during any quarter-hour in a time period. •Cume: Total number of different people who listened to station for at least five minutes in a quarter-hour period within a reported daypart. •Average quarter-hour rating (AQH RTG): Estimated number of listeners as a percentage of the survey area population. •Average quarter-hour share (AQG SHR): Percentage of total listening audience tuned to each station. •Portable People Meter (PPM) is a wearable device that electronically tracks what consumers listen to on the radio. RADAR. •Radio's All Dimension Audience Research. •Measures national radio listening and audiences for network radio stations and syndicated radio shows. •RADAR reports are based on a probability sample of nearly 400,000 respondents, aged 12 and older.

Frequency

Number of times receiver is exposed to media vehicle in a specified period.

Media Objectives

Objectives formulated to organize a media plan.

Implementing the PR program:

Press release: Statement provided to the media -Must be factual, true, and of interest to the medium and its audience. •Press conferences: Delivering information by interacting directly with the media. •Exclusives: Offering one medium exclusive rights to the story. •Interviews: Interactions involving a spokesperson answering questions directed toward him or her. •Community involvement: Supporting and contributing to a community. •Internet: Disseminate information electronically. •Social networks and blogs: Online social platforms -Digital public relations: Intersection between traditional public relations activities and new digital marketing functions.

Define the problem

Similar to any marketing campaign, PR managers need to start by defining the problem they are trying to solve. •Brand •Product •Corporate Image •Crisis •Something else Many companies and individuals enhance their public image through involvement in the local community. Conducting research to help define the problem: Reasons for conducting research: -Determines/evaluates public attitudes -Provides input into planning process. -Serves as early warning system. -Secures support internally. -Increases effectiveness of the communication.

Media Vehicle

Specific carrier within a medium category (Facebook - Social).

Scheduling

Timing promotional efforts such that they coincide with the highest potential buying times Methods: 1. Continuity: regular pattern of advertising without gaps or non advertising periods. Appropriate with food products, household products, and products consumed on an ongoing basis 2. Flighting: intermittent periods of advertising and non-advertising. Well suited to seasonal or other products that are consumed mostly during certain time periods. 3. Pulsing: Maintains continuity, but promotional efforts are stepped up at times. Used for products with little sales variation from period to period, but might see some increase in certain times, such as cold beverages in the hot summer months.

Creative Aspects and Mood

The context of the medium in which an ad is placed has an effect on viewers' perceptions. A specific strategy may require certain media (or require you to steer clear) •Creative aspects: -Effective implementation of creativity requires appropriate medium. -Requires media and creative departments to work together to achieve greatest impact with audience. Mood: -Appropriate media used to create a mood that enhances the creativity of message.

Market Analysis and Target Market Identification

To whom will be advertise? - primary research and/or secondary sources help determine which specific groups to target -Media planners, for a variety of reasons, are often more concerned with percentages and index #'s than with raw numbers when trying to determine the market potential -Index number: a good indicator of the potential of a market -Determine where to promote (geographically) a. Survey of buying power index: -the survey of buying power index is based on a number of factors, including population, effective buying income, and total retail sales in the area -Each of these factors is individually weighted to drive a buying power index that charts the potential of a particular metro area, county, or city b. Brand development index (BDI): -factors rate of product usage by geographic area into the decision process c. Category development index (CDI): -provides information on the potential for development of total product category and not specific brands

The New Role of PR

Traditional role: -Maintain mutually beneficial relationships between the organization and its publics. -Act as a marketing communications function. New role: -Work together with marketing department. -Contribute to IMC process that is consistent with marketing goals. Integrating PR into the Promotional Mix•Must include traditional and new responsibilities.

Web Objectives

Websites were initially just for informational purposes -One-way flow of information The Internet is really a hybrid media. -Communications -Direct-response -Branding vehicle -Sales platform -Relationship/loyalty builder Web Objectives: -Create awareness. -Generate interest. -Provide information. -Develop a brand. -Stimulate trial. -Sell product. -Build relationships.

Classifications of Magazines

•Bought by general public for information and/or entertainment. •Classifies 2,800 different magazines into 80 classifications, including: -Categories—Sports, lifestyle, travel, etc. -Distribution—Subscription, circulation, and store distribution. -Frequency—Weekly, monthly, and bimonthly. •Special-interest magazines reach target audience with little wasted coverage or circulation.

Time Classifications

•Dayparts: •Size of listening audience varies across dayparts. •Advertising rates vary across many factors: •Dayparts. •Number of spots or type of audience plan purchased. •Supply and demand of time available in local market. •Ratings of individual station.

Measuring the Effectiveness of PR

•Determines what has been achieved •Provides a way to measure achievements quantitatively. •Provides a way to judge the quality of achievements and activities. PR evaluation enables organizations to: •Validate results of their efforts. •Link results to business outcomes. •Credibly merchandise impact of results to PR program funders. •Set and develop better objectives and strategies. •Make midcourse adjustments and corrections. •Regularly adapt their measurement approaches. Methods: •Media content analysis. •Survey research .•Marketing-mix modeling.

Determining Effective Reach

•Effective reach: Percentage of audience reached at each effective frequency increment. •Based on assumption that one exposure to ad may not be enough to convey desired message. •Effective reach (exposure) is 3 to 10 exposures. •Since we do not know how many times the viewer will actually be exposed, advertisers typically purchase GRPs that lead to 3+ exposures to increase the likelihood of effective reach and frequency. •Use average frequency when calculating GRPs. -Average number of times target audience reached by a media schedule is exposed to vehicle over specified period.

Couponing

•Oldest and most widely used sales promotion tool. •60% of consumers use coupons; 13% use regularly. •258 billion distributed in 2018 in U.S.

The Control and Dissemination of Publicity

•Sometimes information leaks out—adverse publicity. •Some publicity can benefit marketers. •Video news release (VNR): -Publicity piece produced by publicists so stations air it as a news story. -Marketers have control over time and place where information is released.