Chapter 13

Firms may seek the help of full-service or limited-service advertising agencies for their advertising. Describe each.

A limited-service agency provides one or more specialized services, such as media buying or creative development. A full-service agency supplies most or all of the services a campaign requires, including research, creation of ad copy and art, media selection, and production of the final messages.

What is advertising, and what types of advertising do marketers use most often? What is an advertising campaign?

Advertising is non-personal communication from an identified sponsor using the mass media. Advertising is so much a part of marketing that many people think that advertising is marketing (but remember that product, price, and distribution strategies are crucial as well). Product advertising, where the message focuses on a specific good or service (Just do it, AFLAC duck). Rather than a focus on a specific brand, institutional advertising promotes the activities, personality, or point of view of an organization or company. While historically newspapers have been the medium of choice for retail and local advertising, today these ads may take the form of pop-up ads online or text messages on your mobile device.

Describe the steps in developing an advertising campaign. What is a creative brief? What is meant by the appeal, execution format, tonality, and creative tactics used in an ad campaign?

An advertising campaign is a coordinated, comprehensive plan that carries out promotion objectives and results in a series of creatively similar advertisements placed in various media over a period of time. Steps: understand the target audience, establish message and budget objectives, create the ads, pretest what the ads will say, choose the media types and media schedule, evaluate the advertising. The strategy is summarized in a written document known as a creative brief, a rough blueprint that guides the creative process.

What is promotion? What is integrated marketing communication (IMC)? What are multichannel promotion strategies?

Integrated marketing communication (IMC) is the process that marketers use "to plan, develop, execute, and evaluate coordinated, measurable, persuasive brand communication programs over time to targeted audiences." The IMC approach argues that consumers come in contact with a company or a brand in many different ways before, after, and during a purchase. Multichannel promotion strategy where they combine traditional marketing communication activities (advertising, sales promotion, public relations, and direct marketing) with social media and other online buzz-building activities

List and explain the steps in promotion planning.

Marketers begin the promotion planning process by identifying the target audience(s). Next, they establish communication objectives. Objectives often are to create awareness, inform the market, create desire, encourage purchase and trial, or build loyalty.

Describe the three steps in developing marketing communication budgets.

Marketers develop promotion budgets from rules of thumb, such as the percentage-of-sales method, the competitive-parity method, and the objective-task method. They then decide on a push or a pull strategy and allocate monies from the total budget to various elements of the promotion mix.

List the elements of the promotion mix and describe how they are used to deliver personal and mass appeals.

Marketers use the term promotion mix to refer to the communication elements that the marketer controls. The elements of the traditional promotion mix include advertising, sales promotion, public relations, personal selling, and direct marketing.

What is media planning? How do media planners use reach, frequency, gross rating points, and cost per thousand in developing effective media schedules?

Media planning gets a message to a target audience in the most effective way. The media planner must decide whether to place ads in traditional mass media or in digital media. Digital media are classified as owned media, paid or bought media, and earned media.

How do marketers pretest their ads? How do they posttest ads?

Posttesting means conducting research on consumers' responses to advertising messages they have seen or heard (as opposed to pretesting, which, as we've seen, collects reactions to messages before they're actually placed in "the real world"). Posttest examples: Unaided recall tests by telephone survey or personal interview whether a person remembers seeing an ad during a specified period without giving the person the name of the brand. Aided recall tests use the name of the brand and sometimes other clues to prompt answers. For example, a researcher might show a group of consumers a list of brands and ask them to choose which items they have seen advertised within the past week. Attitudinal measures probe a bit more deeply by testing consumers' beliefs or feelings about a product before and after they are exposed to messages about it. If, for example, Pepsi's messages about "freshness dating" make enough consumers believe that the freshness of soft drinks is important, marketers can consider the advertising campaign successful.

Explain the hierarchy of effects and how it is used in communication objectives.

The marketer "pushes" the consumer through a series of steps, or a hierarchy of effects, from initial awareness of a product to brand loyalty. (Awareness, knowledge, desire, purchase, loyalty)

What is digital media? What are owned, paid, and earned media? What are the different advertising activities or techniques included in website advertising, mobile advertising, and video sharing?

The term digital media refers to any media that are digital rather than old-school analog, the technology used for landline telephones and nondigital watches. Owned media, including their own websites, blogs, Facebook pages, YouTube channels, and Twitter accounts. The advantage of these owned media is that they are effective means for companies to build relationships with their customers while they maintain control of content. Paid media, the most similar form to traditional media, includes display ads, sponsorships, and paid key word searches on search engines such as Google. Consumers generally dislike paid ads, reducing their effectiveness. Earned media refers to word of mouth or buzz created by consumers themselves on social media. The positive of earned media is that it is the most credible to consumers, just like their friends and families have been most credible pretty much forever. The challenge is that marketers have little control over earned media where messages may be positive or negative; they can only listen and respond.

Describe the traditional communication model.

The traditional communication process includes a message source that creates an idea, encodes the idea into a message, and transmits the message through some medium. The message is delivered to the receiver, who decodes the message and may provide feedback to the source. Anything that interferes with the communication is called "noise."

What is consumer-generated advertising, and what are its advantages? What is crowdsourcing, and how is it used in advertising? What is native advertising?

User-generated content (UGC), also known as consumer-generated media (CGM), includes online consumer comments, opinions, advice, consumer-to-consumer discussions, reviews, photos, images, videos, podcasts and webcasts, and product-related stories available to other consumers through digital technology. Crowdsourcing is a practice in which firms outsource marketing activities (such as selecting an ad) to a community of users—that is, a crowd. Advergaming, native advertising, and content marketing are additional types of branded con