Chapter 16 – Marketing Exam #4

Advertising
Impersonal, one-way mass communication about a product or organization that is paid for by a marketer.
Institutional Advertising
Enhances a company’s image rather than promotes a particular product.
Product Advertising
Touts the benefits of a specific good or service.
3 Types of Product Advertising
Pioneering, Competitive, Comparative
Pioneering Advertising
-Stimulates primary demand for new product or category
-Used in the PLC introductory stage
Competitive Advertising
-Influence demand for brand in the growth phase of the PLC
-Often uses emotional appeal
Comparative Advertising
-Compares two or more competing brands’ product attributes
-Used if growth is sluggish, or if competition is strong
Advertising Campaign
A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals.
The DAGMAR Approach
Define target audience, desired percentage change, and the time frame for change
Common Advertising Appeals
Common Advertising Appeals
Unique Selling Proposition
A desirable, exclusive, and believable advertising appeal selected as the theme for a campaign.
Media Planning
The series of decisions advertisers make regarding the use of media, allowing optimal and cost-effective communication to the target market.
Internet
-Fastest growing of “major” ad media
-Advantages: ability to reach a narrow target audience and short lead times at a moderate cost
Media Selection Considerations
Cost per Contact, Audience Selectivity, Reach, Medium Flexibility, Frequency, Noise Level, Medium Life Span
Cost per Contact
The cost of reaching one member of the target market
Audience Selectivity
The ability of an advertising medium to reach a precisely defined market
Reach
The number of target consumers exposed to a commercial at least once during a specific period, usually four weeks
Frequency
The number of times an individual is exposed to a given message during a specific period
Noise Level
The level of distraction experienced by the target audience in a medium
Media Schedule
Designation of the media, the specific publications or programs, and the insertion dates of advertising
Continuous Media Schedule
Advertising is run steadily throughout the advertising period; used for products in the later stages of the PLC
Flighted Media Schedule
Ads are run heavily every other month or every two weeks to achieve a greater impact with an increased frequency and reach at those times
Pulsing Media Schedule
Uses continuous scheduling throughout the year coupled with a flighted schedule during the best sales periods
Seasonal Media Schedule
Runs advertising only during times of the year when the product is most likely to be used
Public Relations
-Evaluates public attitudes
-Identifies issues of public concern
-Executes programs to gain public acceptance
Public Relations Tools
New Product Publicity, Product Placement, Consumer Education, Sponsorship, Company Web Sites
Crisis Management
A coordinated effort to handle the effects of unfavorable publicity or of an unfavorable event
Sales Promotion
Marketing communication activities, other than advertising, personal selling, and public relations, in which short-term incentive motivates a purchase
Consumer Sales Promotion
Ultimate consumer market
Trade Sales Promotion
Marketing channel members
Trade Allowance
A price reduction offered by manufacturers to intermediaries, such as wholesalers and retailers
Push Money
Money offered to channel intermediaries to encourage them to “push” products
Coupon
A certificate that entitles consumers to an immediate price reduction when they buy the product
Rebate
A cash refund given for the purchase of a product during a specific period
Premium
An extra item offered to the consumer, usually in exchange for some proof of purchase of the promoted product