Marketing Ch 15

Advertising agency

A marketing services firm that assists companies in planning, preparing, implementing and evaluating all or portions of their advertising programs.

Madison & Vine

A term that has come to represent the merging of advertising and entertainment in an effort to break through the clutter and create new avenues for reaching consumers with more engaging messages.

Advertising

Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an identified sponsor.

Public relations

Building good relations with the company's various publics by obtaining favorable publicity, building up a good corporate image, and handling or heading off unfavorable rumors, stories, and events.

Media

Reach; Frequency; Impact; Cost per thousand (CPM)

Media Types (Advantages and Disadvantages)

TV; Newspapers; Direct Mail; Magazines; Radio; Outdoor; Internet

Execution style

The approach, style, tone, words, and format used for executing an advertising message.

Creative concept

The compelling "big idea" that will bring the advertising message strategy to life in a distinctive and memorable way.

advertising budget

The dollars and other resources allocated to a product or company advertising program.

Return on advertising investment

The net return on advertising investment divided by the costs of the advertising investment.

Advertising strategy

The strategy by which the company accomplishes its advertising objectives It consists of two major elements: creating advertising messages and selecting advertising media.

Advertising media

The vehicles through which advertising messages are delivered to their intended audiences.

Negative Publicity

Tiger Woods, Michael Vick; can be good -- Tylenol poisoning; how its handled

Evaluating Advertising

based on sales, but hard to show relationship (many variables); evaluate before they show it (feedback from focus groups); post release surveys hard to do

Outdoor

billboards, busses

TV

changing due to DVR (fast forward through commercials); lots of product placement

Cost per thousand (CPM)

cost to reach 1,000 people; used to compare different media types

International Advertising

customize to each location, or keep one global ad?

Newspapers

declining media

Advertising Agencies

declining/changing due to DVRs; mergers (need international reach and enough work to level highs and lows); clients turnover ever 5 years; paid on % of media purchased; re-emergence of small, specialized companies paid flat fee.

Internet

difficult to use for ads; match ads to search profiles; viral ads

Impact

do people notice? not necessarily do they buy; color, shape, etc.

inform

good for new products

Frequency

how many times? not too many (annoying), but 3 or more

Advertising program objectives

inform; persuade; remind

Magazines

more interesting than newspapers, but still decline; some specialty magazines

Direct Mail

not good, most thrown out

remind

older products; recipes (jello)

Public Relations

reaching a mass audience without paying (charity event, host sports events, stunts); more credible than ads; press junkets (brings travel writers to Disney world); news stories (about ads?)

Advertising Message

slogans

Reach

the number of people

persuade

to choose a particular brand; show benefits of one over another

Alternative Media

tradeshows, shopping carts, pens; product placement (reality TV); guerrilla marketing; covert marketing (leaners); temporary tattoos; petvertising; meetings & events

Radio

use more specialized stations to focus ads on groups; subscription stations don't have ads