What is institutional advertising focused on promoting

Advertising, Public Relations, and Sales Promotion

Chapter 16

Topic Goals

Discuss the effects of advertising on consumers and market share

Identify the major types of advertising

Discuss the creative decisions in developing an advertising campaign

Describe media evaluation and selection techniques

Discuss the role of public relations in the promotional mix

Define and identify objectives of sales promotion and the tools used to achieve the objectives

Effects of Advertising

GOAL #1: Discuss the effects of advertising on consumers and market share

Effects of Advertising

GOAL #1: Discuss the effects of advertising on consumers and market share

Advertising helps marketers increase or maintain brand awareness and, subsequently, market share.

Typically, more is spent to advertise new brands with a small market share than to advertise older brands.

Brands with a large market share use advertising mainly to maintain their share of the market.

Effect of Advertising

Advertising affects consumers’ daily lives as well as their purchases.

Although advertising can seldom change strongly held consumer attitudes and values, it may transform a consumer’s negative attitude toward a product into a positive one.

Finally, advertising can also change the importance of a brand’s attributes to consumers.

By emphasizing different brand attributes, advertisers can change their appeal in response to consumers’ changing needs to try to achieve an advantage over competing brands.

GOAL #1: Discuss the effects of advertising on consumers and market share

Types of Advertising

GOAL #2: Discuss the effects of advertising on consumers and market share

Types of Advertising

Advertising is any form of (a) non-personal, (b) paid communication in which the (c) sponsor or company is identified.

The two major types of advertising are institutional advertising and product advertising.

Institutional advertising is not product-oriented; rather, its purpose is to foster a positive company image among the general public, investment community, customers, and employees.

Product advertising is designed primarily to promote goods or services, and it is classified into three main categories: pioneering, competitive, and comparative.

GOAL #2: Identify major types of advertising

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Types of Advertising

Corporate identity

Pioneering

Competitive

Comparative

Product

Advertising

Institutional

Advertising

Advocacy advertising

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Notes:

Types of Advertising

A product’s place in the product life cycle is a major determinant of the type of advertising used to promote it.

GOAL #2: Identify major types of advertising

Institutional advertising promotes the corporation as a whole and is designed to establish, change, or maintain the corporation’s identity.

A form of institutional advertising is advocacy advertising, typically used to safeguard against negative consumer attitudes and to enhance the company’s credibility among consumers who already favor its position.

Types of Advertising

A product’s place in the product life cycle forms the major determinant of the type of advertising used to promote it.

GOAL #2: Identify major types of advertising

Pioneering

Stimulates primary demand for new product or category. Used in the PLC introductory stage.

Competitive

Influences demand for brand in the growth phase of the PLC. Often uses emotional appeal.

Comparative

Compares two or more competing brands’ product attributes. Used if growth is sluggish, or if competition is strong.

Creative Decisions in Advertising

GOAL #3: Discuss the creative decisions in developing an advertising campaign

Creative Decisions in Advertising

ADVERTISING CAMPAIGN – A series of related advertisements focused on a common theme, slogan, and set of advertising appeals

ADVERTISING OBJECTIVE – Identifies the specific communication tasks that a campaign should accomplish fir a specified target audience during a specified period of time,

GOAL #3: Discuss the creative decisions in developing an advertising campaign

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Creative Decisions in Advertising

Determine the

advertising objectives

Make creative decisions

Make media decisions

Evaluate the campaign

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Notes:

Creative Decisions in Advertising

Before any creative work can begin on an advertising campaign, it is important to determine what goals and objectives the advertising is desired to achieve.

The objectives of a specific advertising campaign often depend on the overall corporate objectives and the product being advertised, and are often determined using the DAGMAR approach.

Defining Advertising Goals for Measured Advertising Results

GOAL #3: Discuss the creative decisions in developing an advertising campaign

The DAGMAR Approach

GOAL #3: Discuss the creative decisions in developing an advertising campaign

Define target audience

Define desired percentage change

Define the time frame for change

Creative Decisions in Advertising

Once objectives are defined, THEN creative work can begin (e.g., identifying the product’s benefits, developing possible advertising appeals, evaluating and selecting the advertising appeals, executing the advertising message, and evaluating the effectiveness of the campaign).

GOAL #3: Discuss the creative decisions in developing an advertising campaign

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Creative Decisions

Develop and evaluate advertising appeals

Execute the message

Evaluate the campaign’s effectiveness

Identify product benefits

GOAL #3: Discuss the creative decisions in developing an advertising campaign

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Exhibit 16.1 – Common Advertising Appeals

Creative Decisions

Message execution is the way an advertisement portrays its information.

The AIDA plan is a good means of executing an advertising message.

An ad should immediately get attention, and hold consumers’ interest, create desire for the good, and motivate the action of purchase.

Exhibit 16.2 provides examples of executional styles used by advertising.

Executional styles often dictate the type of media utilized.

Exhibit 16.2–Common Execution Styles for Advertising

Media Selection and Evaluation

GOAL #4: Describe media evaluation an selection techniques

Media Selection & Evaluation

Media evaluation and selection make up a crucial step in the advertising campaign process.

Major types of advertising media include newspapers, magazines, radio, television, the Internet, outdoor media such as billboards and bus panels.

Recent trends in advertising media include shopping carts, computer screen savers, DVDs, CDs, interactive kiosks, advertisements before movies, posters on bathroom stalls, and “advertainments.”

GOAL #4: Describe media evaluation an selection techniques

Media Selection & Evaluation

Promotion managers choose the advertising campaign’s media mix basis on the following:

cost per contact,

reach,

frequency,

characteristics of the target audience,

flexibility of the medium,

noise level, and

the life span of the medium.

After choosing the media mix, a media schedule designates when the advertisement will appear and the specific vehicles in which it will appear.

GOAL #4: Describe media evaluation an selection techniques

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Media Decisions in Advertising

Newspapers

Magazines

Radio

Television

Internet

Outdoor Media

Direct Mail

Trade Exhibits

Cooperative Advertising

Brochures

Coupons

Catalogs

Special Events

Monitored Media

Unmonitored Media

U.S. advertisers spend roughly $300 billion annually on monitored media.

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Newspapers

Advantages

Geographic selectivity

Short-term advertiser commitments

News value and immediacy

Year-round readership

High individual market coverage

Co-op and local tie-in availability

Short lead time

Disadvantages

Limited demographic selectivity

Limited color

Low pass-along rate

May be expensive

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Magazines

Advantages

Good reproduction

Demographic selectivity

Regional/local selectivity

Long advertising life

High pass-along rate

Disadvantages

Long-term advertiser commitments

Slow audience build-up

Limited demonstration capabilities

Lack of urgency

Long lead time

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Notes:

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Radio

Advantages

Low cost

Immediacy of message

Short notice scheduling

No seasonal audience change

Highly portable

Short-term advertiser commitments

Entertainment carryover

Disadvantages

No visual treatment

Short advertising life

High frequency to generate comprehension and retention

Background distractions

Commercial clutter

Local advertisers are the most frequent users of radio advertising. Radio also lends itself well to cooperative advertising.

The ability to target specific demographic groups is a major selling point for radio stations.

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Notes:

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Television

Advantages

Wide, diverse audience

Low cost per thousand

Creative opportunities for demonstration

Immediacy of messages

Entertainment carryover

Demographic selectivity with cable

Disadvantages

Short life of message

Consumer skepticism

High campaign cost

Little demographic selectivity with stations

Long-term advertiser commitments

Long lead times for production

Commercial clutter

Advertising on television can be very expensive. First-run prime-time shows command rates of $300,000 to $500,000 for a 30-second spot

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Notes:

Public Relations

GOAL #5: Discuss the role of public relations in the promotional mix

Media Selection & Evaluation

Public relations is a vital part of a firm’s promotional mix.

A company fosters good publicity to enhance its image and promote its products.

Popular public relations tools include new-product publicity, product placement, consumer education, sponsorship, company Web sites.

An equally important aspect of public relations is managing unfavorable publicity in a way that is least damaging to a firm’s image.

GOAL #5: Discuss the role of public relations in the promotional mix

Achieving Objectives

GOAL #6: Define and state objectives of sales promotion and the tools used to achieve those objectives

Achieving Objectives

Marketing managers can use sales promotion to increase the effectiveness of their promotional efforts.

Sales promotion can target either trade or consumer markets.

Trade promotions may push a product through the distribution channel using sales contests, premiums, P-O-P displays, trade allowances, push money, training, free merchandise, store demonstrations, and business meetings.

Consumer promotions may push a product through the distribution channel using coupons, rebates, premiums, loyalty marketing programs or frequent buyer programs, contests, sweepstakes, sampling, and point-of-purchase displays.

The biggest trend in sales promotions on both the trade and consumer side has been the increased use of(surprise!!) the Internet.

GOAL #6: Define and state objectives of sales promotion and the tools used to achieve those objectives