Marketing: Chapter 19 – Advertising, Sales Promotion

Advertising
Any paid form of nonpersonal communication about an organization, good, service or idea by an identified sponsor.
Types of Product Advertising
1. Pioneering (informational)
2. Competitive (persuasive)
3. Reminder
Pioneer Ads
Ads used in the introductory stage of the product life cycle. Tell people what a product is, what it can do, and where it can be found.
Competitive Ads
Ads that promote a specific brand’s features and benefits.
Comparative Ads
Ads showing one brand’s strengths relative to those of a competitor.
Reminder Ads
Ads used to reinforce previous knowledge of a product.
Institutional Advertising
Ads used to build goodwill or an image for an organization, rather than a good or service.
Types of Institutional Advertising
1. Advocacy – state the position of the company.
2. Pioneering Institutional – announce what a company is, what it can do, where it is located.
3. Competitive Institutional – promotes the advantages of one product class over another.
4. Reminder Institutional – bringing a company’s name to your attention again.
Developing the Advertising Program
1. Identify the Target Audience
2. Specify Advertising Objectives
3. Setting the Advertising Budget
4. Designing the Advertisement
Fear Appeals
That the consumer can avoid some negative experience through the purchase and use of some product or service, a change in behavior, or a reduction in use of a product.
Sex Appeals
Ads that suggest to the audience that the product will increase the attractiveness of the user.
Humorous Appeals
Ads that imply either directly or subtly that the product is more fun or exciting than competitors’ offerings.
Advertising Media
The means by which the message is communicated to the target audience.
Reach
The number of different people or households exposed to an ad.
Rating
The percentage of households in a market that are tuned to a particular TV show or radio station.
Frequency
The average number of times a person in the target audience is exposed to a message or advertisement.
Gross Rating Points (GRP)
Reach is multiplied by frequency.
Cost Per Thousand (CPM)
The cost of reaching 1,000 individuals or households with the advertising message in a given medium.
Different Media Alternatives
1. Television
2. Radio
3. Magazines
4. Newspapers
5. Yellow Pages
6. Internet
7. Outdoor
8. Direct Mail
Webtipping
Clicking on the ad banners to help keep the website free.
Place-based Media
Messages placed in locations that attract a specific target audience: doctors’ offices, health clubs, theaters, grocery stores, bathrooms.
Scheduling the Advertising
1. Continuous (steady) schedule
2. Flighting (intermittent) schedule
3. Pulse (burst) schedule
Continuous Scheduling
Advertising is run at a continuous or steady schedule throughout the year.
Flighting Scheduling
Periods of advertising are scheduled between periods of no advertising to reflect seasonal demand.
Pulse Scheduling
Flighting schedule combined with continuous scheduling because of increases in demand, heavy periods of promotion, or introduction of a new product.
Pretesting the Advertising
1. Portfolio Tests
2. Jury Tests
3. Theater Tests
Portfolio Tests
The test ad is placed in a portfolio with sever other ads and stores, consumers are asked to read through the portfolio and judge the ads on a scale. Hidden among other ads.
Jury Tests
Showing the ad copy to a panel of consumers and having them rate how they liked it and rate it. Not hidden among other ads.
Theater Tests
Most sophisticated. Consumers are invited to view the new show or movie. Then register their feelings about the ads either on handheld electronic recording devices or questionnaires afterwards.
Carrying Out the Advertising Program
1. Full-service agency
2. Limited-service agency
3. In-house agency
Assessing the Advertising Program
1. Posttesting the Advertising
2. Making Needed Changes
Types of Posttesting
1. Aided Recall
2. Unaided Recall
3. Attitude Tests
4. Inquire Tests
5. Sales Tests
Aided Recall
After being shown an ad, respondents are asked whether their previous exposure to it was through reading, viewing, or listening.
Unaided Recall
Asking respondents to remember what ads they saw previously to determine whether they saw or heard advertising messages.
Attitude Tests
Respondents are asked questions to measure changes in their attitudes after an advertising campaign. “More favorable attitude toward product advertised?”
Inquiry Tests
Ads generating the most inquiries for product information, samples or premiums, are presumed to be the most effective.
Sales Tests
Controlled experiments (radio vs. tv) and consumer purchase tests to see if sales increase.
Consumer Promotions
Sales tools used to support a company’s advertising and personal selling.
Types of Consumer Promotions
1. Coupons
2. Deals
3. Premiums
4. Contests
5. Sweepstakes
6. Samples
7. Loyalty Programs
8. Point-of-Purchase Displays
9. Rebates
10. Product Placements
Coupons
Offer a discounted price to the consumer, which encourages trial.
Deals
Short-term price reductions used to increase trial among potential customers or to retaliate against a competitor’s actions.
Premiums
Merchandise offered free or at a significant savings over its retail price, but incorporating the cost into the overall price to cover expenses. Happy Meal toys, shopping bags, mugs, cups, and desk accessories.
Contests
Applying skill or analytical or creating thinking to try to win a prize.
Sweepstakes
Submit some kind of entry but are purely games of chance.
Samples
Offering the the product free or at a greatly reduced price.
Loyalty Programs
Used to encourage and reward repeat purchases by acknowledging each purchase made by a consumer and offering a premium as purchases accumulate.
Point-of-Purchase Displays
Product displays or signs that hold the product and are often located in high-traffic areas near the cash register or the end of an aisle.
Rebates
The return of money based on proof of purchase.
Product Placement
The use of a brand name product in a movie, show, video game, or commercial for another product.
Reverse Product Placement
Bringing fictional products to the marketplace.
Trade Promotions
Support a company’s advertising and personal selling directed to wholesalers, retailers, or distributors.
Types of Trade Promotions
1. Allowances and Discounts
2. Cooperative Advertising
3. Training of Distributors’ Salesforces
Allowances and Discounts
To increase purchases made by intermediaries.
Merchandise Allowances
Reimbursing a retailer for extra in-store support or special featuring of the brand.
Case Allowances
Discount on each case ordered during a specific time period.
Finance Allowances
Paying retailers for financing costs or financial losses associated with consumer sales promotions. Stock protection program or freight allowances.
Cooperative Advertising
When a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products.
Training of Distributors’ Salesforces
When the manufacturer helps train the reseller’s sales force in order educate and motivate the salespeople to sell their products.
Public Relations
Communication management that seeks to influence the image of an organization and its products and services.
Publicity Tools
Nonpersonal presentation of an organization, good, or service without direct cost.
Types of Publicity Tools
1. News Conference
2. Public Service Announcement (PSA’s)
3. High-Visibility Individuals
Building Long-Term Relationships with Promotion
Promotion can contribute to brand and store loyalty by improving its ability to target individual preferences.
Self-Regulation
Imposing standards that reflect the values of society on themselves.