MARK 3000 Chapter 18

advertising

"a paid form of communication, delivered through media from an identifiable source, about an organization, product, or idea designed to persuade the receiver to take some action, now or in the future" this is an enormous industry that remains virtually everywhere and is continuing to grow, this is a highly selective process because consumers screen out messages that are not relevant to them or because they don't remember it so they must get the consumers attention to the message and brand

informative advertising

a communication used to create and build brand awareness, with the ultimate goal of moving/pushing the consumer through the buying cycle to a purchase, these help determine some important early stages of a products life cycle, particularly when consumers have little information about the specific product or type of product, retailers often use this to tell their customers about an upcoming sales event or the arrival of new merchandise

reminder advertising

a communication used to remind or prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle, appears in traditional media (television or print) also encompasses other forms of advertising

sales promotion

a natural link between advertising and this which are special incentives or excitement building programs that encourage consumers to purchase a particular product, typically used in conjunction with other advertising or personal selling programs, can be targeted at end user consumers or channel members, used in both push and pull strategies (includes: free samples, point of purchase displays (short term sales) loyalty programs, contests, sweepstakes (long term sales), coupons, deals, premiums, rebates, and product placement)

subhead of an advertisement

a smaller headline, providing more information about the product the firm is selling; specific information valuable to the consumer, should be short and use simple words, include the primary product benefits, name of the brand, and an interest provoking idea, should contain an action verb and give enough information for learning even if only the headline is read

time series analysis

a statistical technique in which sales data from the past is used to forecast the future, which can be composed into basic trend or natural demand of market, seasonal influences, and the lift

advertising plan

a subsection of the firm's overall marketing plan that explicitly analyzes the marketing and advertising situation, identifies the objectives of the advertising campaign, clarifies a specific strategy for accomplishing those objectives, and indicates how the firm can determine whether the campaign was successful

lift in purchases

additional sales caused by the advertising and/or promotion in a time series analysis

creating ad campaign (part of 6)

advertisers must convey their message using compelling visuals, headlines, subheads, body copies, and identifying brand elements

advertising versus promotion

advertising is not free, advertising must be carried by some medium (television, radio, print, the web, clothing, etc...), legally, the source of the message in advertising must be known or knowable, advertising represents a persuasive form of communication, designed to get the consumer to take some action

emotional appeal

aims to satisfy consumers emotional desires rather than their utilitarian needs, focus on feelings about the self, to be successful must use emotion to create a bond between the consumer and the brand (five types: fear/safety, humor, happiness, love/sex, comfort, and nostalgia)

advertising objectives

all advertising campaigns aim to achieve certain objectives: to inform, to persuade, and to remind customers, firms examine an advertisements focus (stimulate demand for a product, stimulate demand for an entire industry, stimulate demand for a specific brand, or inform of firms existence?)

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

contest

brand sponsored competition that requires some form of skill or effort that creates excitement about firm, advantages: increases consumer involvement, disadvantages: requires creativity and must be monitored

focus of advertising

campaigns objective determine each specific advertisements focus, can be: product, institutional, or public service focused

niche media

channels are more focused and generally used to reach narrow segments, often with unique demographic characteristics or interests, includes: specific TV channels, specialty magazines, some websites, and potential billboards

mass media

channels include national newspapers, magazines, radio, and television, these types of media are ideal for reaching large numbers of anonymous audience members

cause related marketing (public relations tool)

commercial activity in which businesses and charities form a partnership to market an image, a product, or a service for their mutual benefit (promotional campaign)

push strategy

designed to increase demand by focusing on wholesalers, retailers, or salespeople, these campaigns attempt to motivate the seller to highlight the product, rather than the products of competitors, and thereby push the product to consumers, target audience is the channel members (the trade), personal selling and trade promotion are used primarily (manufacturer promotes to wholesaler->wholesaler promotes to retailer->retailer promotes to consumer->consumer buys from retailer)

coupon

discount on the price of specific items when they're purchased, issued in newspapers, at the cash register, over the internet, through the mail, or on the shelf, advantages: stimulates demand and allows for direct tracing of sales (contain info about the customer who uses it, bar code, internet history) disadvantages: low redemption rates and high cost

step 6: create advertisements

during this step, the message and appeal are translated creatively into words, pictures, colors, and/or music, the type of medium for an ad determines the execution style, ad must attract attention and provide a reason for the audience to spend its time viewing the ad, and accomplish what it has set out to do, creativity plays a key role in the execution stage (but should not overshadow the message), when using multiple media firms must maintain consistency across execution style (integrated marketing) so that different executions deliver a consistent and compelling message to the target audience, must consider: objectives of the ad and medium must match execution style, targeted customer segments, the products proposed value proposition/unique selling proposition, and how the ad will be coordinated with other IMC elements

choosing the right medium

each alternative form of media has a specific characteristic that makes it suitable for meeting specific objectives, consumers use different media for different purposes to which advertisers match their message (TV is used for escapism and entertainment so ads rely on visual and auditory techniques, radio ads good for fast food purchases because when most likely to occur->decision making process)

step 7: assess impact using marketing metrics

effectiveness of an ad campaign must be assessed before (pretesting), during (tracking), and after the campaign has run (posttesting), measuring sales impact is challenging because of the many influences other than advertising on consumers choices, purchase behavior, and attitudes

firms research for target audience

firms must keep in mind that their target audience may or may not be the same as current users of the product, for example a firm may use a symbol or personality to reach a target audience

public service (-focused) advertisements

focus on public welfare, generally they are sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups, also inform, persuade, or remind consumers but the focus is for the betterment of society, can also be targeted to decrease consumption, usually creative and stylistically appeasing, this represents a form of social marketing

sales volume vs advertising effectiveness (assessment)

for frequently purchased consumer goods in the maturity stage of the PLC, sales volume offers a good indicator of advertising effectiveness, in other stages of the PLC sales volume is not a good indicator of advertising effectiveness

Federal Trade Commission (1914)

general purpose is enforcing federal consumer protection laws and acting as enforcement agency for most mass media advertising, has specific jurisdiction in enforcing truth issues in advertising laws (defines deceptive and unfair advertising practices), this sometimes can investigate and enforce regulations with other agencies, position on puffery is that it will not pursue cases involving obviously exaggerated or puffing representation->those that ordinary consumers do not take seriously

Food and Drug Administration (1930)

general purpose is regulating food, dietary supplements, drugs, cosmetics, medical devices (including radiation-emitting devices such as cell phones), biologics (biological issues), and blood products and has specific jurisdiction in regulating package labeling and inserts, definitions of terms such as light and organic and required disclosure statements (warning labels, dosage requirements, etc...)

Federal Communications Commission (1934)

general purpose is regulating interstate and international communications by radio, television, wire, satellite, and cable and has specific jurisdiction in enforcing restrictions on broadcasting material that promotes lotteries (with some exceptions), cigarettes, little cigars, or smokeless tobacco products, or that perpetuates a fraud, also enforces laws that prohibit or limit obscene, indecent, or profane language

informational appeal

help consumers make purchase decisions by offering factual information that encourages consumers to evaluate the brand favorably on the basis of the key benefits it provides, informs consumers about a potential source of competitive advantage, including tangible features and images of science

presentation

https://prezi.com/musdvvvigdmp/social-marketing-october-2014/

brand elements of an advertisement

identify the sponsor of the advertisement, typically through a logo and a unique selling proposition

influences over purchase behavior (assessment)

include the level of competitors advertising, economic conditions in the target market, sociocultural changes, in store merchandise availability, and even the weather (advertisers must consider all of these)

types of media available for advertising

includes: TV, radio, magazines, newspapers, internet, outdoors, and direct marketing (page 404)

product placement

inclusion of a product in nontraditional situations, such as in a scene in a movie or TV program, which increases visibility of their products, can be subtle, advantages: displays products non-traditionally and demonstrates product use, disadvantages: firms have little control over display and product can be overshadowed

institutional (-focused) advertisements

inform, persuade, or remind consumers about issues related to places, politics, or an industry and can include public service advertising

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, supporting other promotional efforts by generating free media attention and general goodwill, and maintaining positive relationships with the media, firms orchestrate events of publicity to get the maximum benefit for both parties->good this, consumers value this aspect of the IMC because it is not paid for by the firm

step 4: convey the message

marketers determine what they want to convey about the product, firm determines key message it wants to communicate to the target audience and then decides what appeal would most effectively convey the message (both message and appeal must be considered simultaneously)

using sales promotion tools

marketers must be careful in their use of sales promotions (like price reductions) because consumers can just stock up on the product (shifting future sales in favor of short run benefits) and firms are realizing the value of cross promoting

viral marketing campaign

marketing techniques that use pre-existing social networking services and other technologies to try to produce increases in brand awareness or to achieve other marketing objectives (such as product sales) through self-replicating viral processes, analogous to the spread of viruses or computer viruses, may take the form of video clips, interactive Flash games, advergames, ebooks, brandable software, images, text messages, email messages, or web pages, and spread through word of mouth

point of purchase displays

merchandise displays located at the point of purchase (checkout counter which can be online), considered the most valuable real estate in the store by retailers, advantages: provides high visibility and encourages brand trial, disadvantages: real estate is costly in the store and can be costly

tracking

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

event sponsorship (public relations tool)

occurs when corporations support various activities (financially or otherwise) usually in the cultural or sports and entertainment sectors

samples

offerings to potential customers of the opportunity to try a product before they make a buying decision, advantages: very effective promotion technique, encourages trial, and offers direct involvement, disadvantages: very costly

premium

offers an item for free or at a bargain price to reward some type of behavior, such as buying, sampling, or testing which in turn build goodwill among consumers, who often perceive high value in them, can be distributed in a variety of ways: included in product packaging (free toy in kids meal), handed out in the store, or delivered in the mail, disadvantages can be sometimes consumers buy for this and not the product, high cost, and it must be carefully manged

sweepstake

offers prizes based on a chance drawing of entrants names, also doesn't require entrants to complete a task other than buying a ticket or filling out a form, advantages: encourage current consumers to consumer more if its form appears inside the packing or with the product so increased involvement, disadvantages: some states specify no purchase requirement for this and sales often decline after

rebates

particular type of price reduction in which a portion of the purchase price is returned by the seller to the buyer in the form of cash, can be delivered online or through the mail, advantages: stimulates demand and increases value perception, disadvantages: easily copies by competition and may just advance future sales

the message

provides the target audience with reason to respond in the desired way, first tout the key benefits of the product, this should communicate its problem solving ability clearly and in a compelling fashion (advertisers must remember that products solve problems whether real or perceived), another common strategy used is to differentiate a product by establishing its unique benefits which forms the basis for the unique selling proposition, this communication must be not only unique to the brand but also meaningful to the consumer (sustainable over time)

regulatory and ethical issues in advertising

regulation of ads involves a complex mix of formal laws and informal restrictions designed to protect consumers from deceptive practices, parts: federal and state laws and wide range of self regulatory agencies and agreements, includes: FTC, FCC, and FDA

body copy of an advertisement

represents the main portion of the advertisement, used to build on the interest generated by the visual and headlines, explains in more depth what the headline and subheads introduced, arouses desire for the product, and provides enough information to move the target consumer to action

pulsing media schedule

schedule combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods (airlines, hotels?)

flighting media schedule

schedule is implemented in spurts, with periods of heavy advertising followed by periods of no advertising, generally functions for products whose demand fluctuates (eg: suntan lotion->summer)

continuous media schedule

schedule runs steadily throughout the year and therefore is suited to products that are consumed continually at relatively steady rates and that require a steady level of persuasive and/or reminder advertising

deal

short term price reduction that can take several forms: featured price, a price lower than regular price, financial arrangement (reduced interest and loan), buy one get one free offer, or more free offering for larger orders, advantages: encourages trial and reduces consumer risk, disadvantages: reduction in perception of value (price/quality relationship)

elements of the public relations toolkit

some elements designed to communicate with various audiences while others are meant to generate media attention and disseminate information, this includes: publications (brochures and special purpose single issue publications like books), video and audio programs and public service announcements, annual reports, media relations (press kits, news releases, speeches, events sponsorship), and electronic media (websites and email campaigns) page 412

loyalty programs

specifically designed to retail customers by offering premiums or other incentives to customers who make multiple purchases over time, if well designed, it can encourage consumers to increase their engagement and purchases from a given firm (CRM system) disadvantages: need to be monitored, costly

steps in planning and executing an advertisement campaign

steps include: (1) identify target audience (2) set advertising objectives (3) determine the advertising budget (4) convey the message (5) evaluate and select media (6) create advertisements and (7) assess impact

step 1: identify target audience

success of advertisement depends on marketers ability to do this, firms conduct research to identify their target audience then use the information they gain to set the tone for the advertising program and help them select the media they will use to deliver the message to that audience

media buy

the actual purchase of airtime or print pages which is generally the largest expense in the advertising budget, marketers must make decisions about this carefully (TV is the most expensive, digital and Spanish language is growing)

social marketing

the application of marketing principles to a social issue to bring about attitudinal and behavioral change among the general public or a specific population segment

media mix

the combination of the media used and the frequency of advertising in each medium, that will deliver a clear, consistent, compelling message to the intended audience

step 5: evaluate and select media

the content of an advertisement is tied closely to the characteristics of the media that firms select to carry the message and vice versa, this step includes: media planning for the media mix and media buy, this can be characterized into a dichotomy: mass and niche media

posttesting

the evaluation of the campaigns impact after it is has been implemented, its the last stage assessment and advertisers assess the sales and communication impact of the advertisement or campaign

pull strategy

the goal is to get consumers to pull the product into the marketing channel by demanding it, the target audience is the consumer, and primarily advertising and consumer sales promotions are used (manufacturer promotes to consumer->consumer demands product from retailer->retailer demands product from wholesaler->wholesaler demands product from manufacturer)

headline of an advertisement

the large type in an ad that is designed to draw attention, should be short and use simple words, include the primary product benefits, name of the brand, and an interest provoking idea, should contain an action verb and give enough information for learning even if only this is read

puffery

the line between what is legal and illegal is more difficult to discern when it comes to this, which is the legal exaggeration of praise, stopping just short of deception, lavished on a product (example: using subjective measures which don't need to be backed up by numerical, quantitative assertions) so this is acceptable as long as consumers know that the firm is stretching the truth through exaggeration

media planning

the process of evaluating and selecting the media mix

unique selling proposition (USP)

the value proposition which is often the common theme or slogan in an advertising campaign, communicates the unique attributes of the product and thereby becomes a snapshot of the entire campaign

step 2: set advertising objective

these campaign objectives are derived from the overall objectives of the marketing program and clarify the specific goals that the ads are designed to accomplish, these objectives appear in the advertising plan which is crucial because it will later serve as the yardstick against which advertising success or failure is measured, generally the overall objective in advertising to consumers is a pull strategy but can be a push strategy

product-focused advertisement

these inform, persuade, or remind consumers about a specific product

persuasive advertising

this happens when a product has gained a certain level of brand awareness, firms use this 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, and attempts to accelerate the market's acceptance of the product and in later stages of the product life cycle this can be used to reposition an established brand by persuading consumers to change their existing perceptions of the advertised product

determining the advertising schedule

this is another important decision for media planners, it specifies the timing and duration of advertising, there are three types of schedules: continuous, flighting, and pulsing

goal of sales promotion

to create value for both the consumers and the firm, must understand needs of consumer as well as how best to entice them to purchase or consume a particular product to effectively develop promotional messages and events that are of interest to and achieve the desired response from those customers (traditionally it was to generate short term sales results and advertising was to generate long term results but both can achieve each)

the appeal

traditionally, three main types that an argument may use: logos (logical), ethos (ethical), and pathos (emotional), advertisers similarly use different appeals to portray their product or service and persuade consumers to purchase them, though advertising tends to combine the types of appeals into two categories: informational and emotional

step 3: determine the advertising budget

various budgeting methods for marketing communication also apply to budgeting for advertising, certain factors affect the budge, firms must consider: the role advertising plays in their attempt to meet their overall promotional objectives, that advertising expenditures vary over the course of the product life cycle, and the nature of the market and the products influence

cross promoting

when two or more firms join to reach a specific target market, the two products from each firm must appeal to the same target market and together create value for consumers