Chapter 18- Advertising PR and Sales Promotions

What is entailed in identifying the target audience? What question is a marketer trying to answer in this step? Why is identifying the target audience important?

A marketer must take into account the tone of message, target market, and media selection. They must perfectly balance all three to have an effective ad campaign.

Point-of-purchase display

A merchandise display located at the point of purchase, such as at the checkout counter in a grocery store EX: impulsively purchase things they see while waiting in line to check out

Advertising

A paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future

Advertising plan

A section of the firm's overall marketing plan that explicitly outlines the objectives of the advertising campaign, how the campaign might accomplish those objectives, and how the firm can determine whether the campaign was successful

Unique selling proposition (USP)

A strategy of differentiating a product by communicating its unique attributed; often becomes the common theme or slogan in the entire advertising campaign -Some of the most famous USP: "red bull..gives you wings" "Ford..built tough" "Oreo...milks favorite cookie"

Institutional advertisements

A type of advertisement that informs, persuades, or reminds consumers about issues related to places, political, or an industry (example: got milk?) ad

Lift

Additional sales caused by advertising

Public service advertising

Advertising that focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups; a form of social marketing -PSA elements in got milk ad- touts the improvement of people's health through milk consumption

Emotional appeal

Aims to satisfy consumers' emotional desires rather than their utilitarian needs -Most common types of emotional appeal: fear, safety, humor, happiness, love (or sex), comfort, nostalgia -Example: Fear/safety- ADT security "breaking into your apartment is easier than you think"

Flighting

An advertising schedule implemented in spurts, with periods of heavy advertising followed by periods of no advertising Ex: Sun tan lotion- advertise heavily in the months leading up to and during the summer

Premium

An item offered for free or at a bargain price to reward some type of behavior, such as buying, sampling or testing

Niche media

Channels that are focused and generally used to reach narrow segments, often with unique demographic characteristics or interests -Ex: specialty television channels (home and garden TV) and specialty magazines such as Skateboarder of Cosmo girl all provide examples of niche media

Mass media

Channels that are ideal for reaching large numbers of anonymous audience members; include national newspapers, magazines, radio and television

Pulsing

Combines the continuous and flighting schedules by maintaining a base level of advertising intensity during certain periods -Ex: Airlines, hotels and car rental companies might continuously advertise to ensure brand awareness but might increase the advertising in spikes during certain low demand periods

Cause-related marketing

Commercial activity which businesses and charities form a partnership to market an image, a product, or a service for their mutual benefit; a type of promotional campaign Ex: Chilis -> St Judes

Informative advertising

Communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase -Retailers often use this to tell their customers about an upcoming sales event or the arrival of new merchandise -Helps determine some important early stages of a products life cycle

Persuasive advertising

Communication used to motivate consumers to take action -Generally occurs in the growth and early maturity stages of the product life cycle, when competition is most intense

Reminder advertising

Communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle Ex: Kleenex tissues on the end of the isle; top of the mind awareness of kleenex; kleenex tissue paper maintains a prominent place in peoples memories and triggers their response, without them having to put any htought into it

Pull strategy

Designed to get consumers to pull the product into the supply chain by demanding it

Push strategy

Designed to increase demand by motivating sellers- wholesalers, distributors, or salespeople- to highlight the product, rather than the products of competitors, and thereby push the product onto consumers

Cross promoting

Efforts of two or more firms joining together to reach a specific target market Ex: J crew has teamed up with Times, Barbour, Levi's to offer exclusive products in the J crew stores and website

What must firms consider when setting an advertising budget?

Firms must consider role, Product life cycle, and nature of the market and product

Tracking

Includes monitoring key indicators, such as daily or weekly sales volume, while the advertisement is running to shed light on any problems with the message or the medium

Product placement

Inclusion of a product in nontraditional situations, such as in a scene in a movie or television program Ex: American Idol judges are seen drinking Coca Cola

Event sponsorship

Popular PR tool; occurs when corporations support various activities (financially or otherwise), usually in the cultural or sport and entertainment sectors Ex: red bull frequently sponsors various kinds of sport events, such as red bull air race and numerous extreme sports events (cliff diving)

Informational appeals

Used in a promotion to help consumers make purchase decisions by offering factual information and strong arguments built around relevant issues that encourage them to evaluate the brand favorably on the bases of the key benefits it provides -Exxon Mobile attempts to explain technical aspects of its products, such as lithium ion batteries in an attempt to convince consumers that the company is environmentally friendly. This appeal is well suited to this type of product: By informing consumers about a potential source of its competitive advantage, including tangible features and images of science, the advertising copy directly delivers an informational, persuasive message

Product-focused advertisements

Used to inform, persuade, or remind consumers about a specific product or service Ex: Pepsi "not all zeros are created equal" designed to inform, persuade and remind consumers about Pepsi Max->designed to generate sales

Advertising objectives are based on what? What are the overall objectives of advertisements and what is entailed in each? How is the product life cycle relevant?

-Based on the advertising plan and either the push or pull strategies. -The overall objective is either; to inform (new product), Persuade (repositioning happens here) and Remind (keeps firm relevant). -The Product lifestyle is important because this stage is very product-focused

What is the advertising schedule and what are the three types of schedules?

-Continuous- same all year (i.e. coke ads) -Flighting- Vary amounts through year (i.e. jewelry store during holidays) -Pushing- Increase and decrease Ads through year but is always advertising (i.e. Home Depot -Advertising schedule is the specification of the timing and duration of advertising

Who is the FCC and what is puffery? How does the FTC relate to advertising?

-FCC or Federal Communications Commission regulates commerce across state and federal boarders. -Puffery is the legal exaggeration of praise, stopping just short of deception, lavished on a product. -FTC or Federal Trade Commission regulates the truth in advertising (regulate the deception of Ads).

What types of appeals do marketers use to portray their products/services? How do marketers assess which type of appeal to use?

-Informational appeals- Used in a promotion to help consumers make purchase decisions by offering factual information and strong arguments built around relevant issues that encourage them to evaluate the brand favorably on the basis of the key benefits it provides. -Emotional appeals- aims to satisfy consumers' emotional desires rather than their utilitarian needs -A marketer will access their product and then decide which appeal from there. Some products such as gas use informational to show their competitive advantage

What are the various focuses of advertisements and what is entailed in each?

-Product-focused- where a firm is trying to sell a product -Institutional focus→ about politics, industries, and issues

What is entailed in assessing an advertisement's impact?

-Tests are done before the ad (Pretesting), during the ad (Tracking), and after the ad (Post testing). -Effectiveness of an advertising campaign must be assessed before, during, and after the campaign

What is entailed in selecting and evaluating media? Which element is generally the largest expense in the advertising budget? What is the difference between the mass media and the niche media?

-The Media planning refers to the process of evaluating and selecting the media mix—the combination of the media used and the frequency of advertising in each medium. -Media Buy is the actual purchase of airtime or print pages (THE MOST EXPENSIVE) -Mass media focuses on the national scene focusing on large segments which niche marketing focuses on small segments with more focused campaigns.

What is entailed in the process of creating advertisements? The execution style and medium utilized are related in what way? What is important to keep in mind in terms of creativity?

-The medium, creativity, and objects are all involved in the creation of an advertisement. -Advertisers simultaneously consider the objectives of the ad, the targeted customer segment(s), the product or service's value proposition or the unique selling proposition and how the ad will be coordinated with other IMC elements. -During this step, the message and appeal are translated creatively into words, pictures, colors and or music -Creativity: will arouse the reader's interest -First component that the reader generally notices is the visual, and as such it should be eye-catching

What is the purpose of the message in advertising? What is the purpose of the unique selling proposition (USP)?

-The message provides the target audience with reasons to respond in the desired way. The message should communicate its problem solving ability clearly and in a compelling fashion. -USP (unique selling proposition) is a strategy of differentiating a product by communicating its unique attributes (i.e. Red Bull...It gives you wings)

Pretesting

Assessments performed before an ad campaign is implemented to ensure that the various elements are working in an integrated fashion and doing what they are intended to do

Public relations

Involves managing communications and relationships to achieve various objectives, such as building and maintaining a positive image of the firm, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media Ex: Placement of designer apparel at media events benefits both the designer and the celebrity. PR people on both sides help orchestrate the events to get the maximum benefit for both parties

Continuous schedule

Runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and that require a steady level of persuasive or reminder advertising Ex: Proctor and Gamble advertises its Tide brand of laundry detergent continuously

Sales promotions

Special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of-purchase displays

Loyalty programs

Specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time -Need to be carefully managed bc they can be costly

What are the steps when planning an ad campaign?

Step 1: Identify Target Audience Step 2: Set Advertising Objectives Step 3: Determine the Advertising Budget Step 4: Convey the Message Step 5: Evaluate and Select Media Step 6: Create Advertisements Step 7: Assess Impact

Media buy

The actual purchase of airtime or print pages

Media Mix

The combination of the media used and the frequency of advertising in each medium -Ex: Macy's may determine that a heavy dose of television, radio, print, and billboards is appropriate for the holiday selling season between thanksgiving and the end of the year

Social marketing

The content distributed through online and mobile technologies to facilitate interpersonal interactions

Posttesting

The evaluation of an IMC campaign's impact after is has been implemented

Puffery

The legal exaggeration of praise, stopping just short of deception, lavished on a product -Ex: Match.com claims that it leads to Better First Dates its puffery bc better is a subjective measure

Media planning

The process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience

Advertising schedule

The specification of the timing and duration of advertising