MRKT Final.Chapters 14-17

promotional mix
the combination of one or more communication tools used to:
a. Inform prospective buyers about the benefits of the product.
b. Persuade them to try it.
c. Remind them later about the benefits they enjoyed by using the product.
In the past, marketers often viewed the communication tools
separate and independent.
a. The advertising department often designed and managed its activities without consulting departments or agencies that had responsibility for sales promotion or public relations.
b. The result was often an overall communication effort that was usually uncoordinated and inconsistent.
Each manufacturer has developed integrated marketing communications (IMC) campaigns that emphasize a single theme:
a. Sony is trying to communicate a message that the PS3 is “an experience ‘beyond’ games, harnessing the power of imagination.”
b. Microsoft’s message for the Xbox 360 is “Jump In” and move to the next generation of gaming.
c. Nintendo is positioning its Wii as a gaming system for the entire family.
· Promotion:
a. Represents the fourth element of the marketing mix.
b. Consists of advertising, personal selling, sales promotion, public relations, and direct marketing.
Integrated marketing communications (IMC).
a. Is the concept of designing marketing communications programs.
b. Coordinates all promotional activities (advertising, personal selling,
sales promotion, public relations, and direct marketing).
c. Provides a consistent message across all audiences.
Communication
a. Is the process of conveying a message to others.
b. Requires six elements: a source, a message, a channel of communication,
a receiver, and the processes of encoding and decoding.
· A source is a company or person who has information to convey.
· A message is the information sent by a source to a receiver.
· A channel of communication is the means (e.g., a salesperson, advertising media, or public relations tools) of conveying a message to a receiver.
Receivers
consumers who read, hear, or see the message sent by a source.
Encoding
the process of having the sender transform an idea into a set of symbols.
Decoding
a. Is the process of having the receiver take a set of symbols, the message, and transform them back to an idea.
b. Receivers perform decoding according to their own frame of reference (attitudes, values, and beliefs).
Errors during the communication process occur in several ways
a. The source may not transform the idea into an effective set of symbols.

b. A properly encoded message may be sent through the wrong channel and never make it to the receiver.

c. The receiver does not transform the set of symbols into the intended idea.

d. Feedback may be so delayed or distorted that it is of no use to the sender.

Field of experience
a. Is a mutually shared understanding and knowledge that a sender and receiver apply to a message so that it can be communicated effectively.

b. Misinterpretations can occur when messages are taken to cultures with different fields of experience or are the result of bad translations.

Feedback
A feedback loop consists of a response and feedback.
· A response is the impact the message had on the receiver’s knowledge, attitudes, or behaviors.
· Feedback is the sender’s interpretation of the response, which indicates whether a message was decoded and understood as intended.
· Pretesting consists of approaches to ensure that messages are decoded properly.
Noise
Noise consists of extraneous factors that can work against effective communication by distorting a message or the feedback received.
· Noise are simple errors that occur when:
a. A printing mistake affects the meaning of a newspaper ad.
b. Words or pictures are used that fail to communicate the message clearly.
c. A salesperson’s accent, use of slang terms, or communication style causes a prospective buyer to misunderstand the message.
What are the six elements required for communication to occur?
They are a source, a message, a channel of communication, a receiver, and the processes of encoding and decoding.
A difficulty for U.S. companies advertising in international markets is that the audience does not share the same ___________.
field of experience
A misprint in a newspaper ad is an example of ___________.
noise
Firms use one or more of five promotional alternatives to communicate with consumers:
Advertising, sales promotion, and public relations use mass selling because they are used with groups of prospective buyers.
· Personal selling uses customized interaction between a seller and a prospective buyer, and includes face-to-face, telephone, and interactive electronic communication.
· Direct marketing also uses messages customized for specific customers.
Advertising
any paid form of nonpersonal communication about an organization, good, service, or idea by an identified sponsor.
a. The paid aspect of advertising is important because the space for the advertising message normally must be bought.
b. The non-personal component of advertising involves mass media, which are non-personal and do not have an immediate feedback loop as does personal selling.
Advertising advantages
a. It is attention-getting.
b. It communicates specific product benefits to prospective buyers.
c. By paying for ad space to communicate a message, a firm controls what is said, to whom it is sent, and when to send it.
d. Once the pictorial, text, and brand elements of the message are created and properly tested, an advertiser can ensure that the ad’s ability to capture the attention of and be decoded by all receivers in a market segment.
Advertising disadvantages
a. The costs to produce and place a message are expensive.
b. The lack of direct feedback makes it difficult to know how well the message was received.
Personal selling
a. Is the two-way flow of communication between a buyer and seller.
b. Often in a face-to-face encounter.
c. Designed to influence a person’s or group’s purchase decision.
· Unlike advertising, personal selling is usually face-to-face communication between the sender and receiver.
Personal selling advantages
a. A salesperson can control to whom a presentation is made.
b. This reduces wasted coverage, or communication with consumers who are not in the target audience.
c. The salesperson can:
· See or hear the potential buyer’s reaction to the message.
· Modify the message if the feedback is unfavorable.
Personal selling disadvantages
a. Flexibility—different salespeople can change the message so no consistent communication is given to all customers.
b. On a cost-per-contact basis, it is the most expensive promotional element.
Public relations.
a. Is a form of communication management.
b. Seeks to influence the feelings, opinions, or beliefs held by customers, prospective customers, stockholders, suppliers, employees, and other publics about a company and its products or services.
public relations department’s tools include
special events, lobbying efforts, annual reports, press conferences, and image management, although publicity is often most important.
Publicity
a. Is a non-personal, indirectly paid presentation of an organization, good, or service.
b. Can take the form of a news story, editorial, or product announcement.
c. A difference between publicity and both advertising and personal selling is the “indirectly paid” dimension. With publicity, a firm:
· Does not pay for space in a mass medium (such as television or radio).
· Attempts to get that medium to run a favorable story on it.
Publicity Advantages
redibility—people tend to believe media stories, reports, and product reviews.
Publicity Disadvantages
the user’s lack of control over what is said, to whom, or when.
· Social media, such as blogs:
a. Have grown dramatically.
b. Allow uncontrollable public discussions of almost any company activity.
c. Many public relations departments now focus on facilitating and responding to online discussions.
According to research, publicity followed by advertising with the same message increases the positive response to the message.
Sales promotion
is a short-term inducement of value offered to arouse interest in buying a good or service. Examples include coupons, samples, and contests.
· Sales promotions are offered to intermediaries as well as to ultimate consumers.
Sales promotion advantages
a. Often increases sales for their duration due to the short-term nature of these programs. Examples: A coupon or sweepstakes with an expiration date.
b. Offering value to the consumer in terms of a cents-off coupon or rebate may increase store traffic from consumers who are not store-loyal.
Sales promotion disadvantages
a. Sales gains are often temporary and drop off after it ends.
b. Advertising support is needed to convert the customer who tried the product because of a sales promotion into a long-term buyer.
c. If used continuously, sales promotions lose their effectiveness because customers begin to delay purchase until a coupon is offered.
d. The federal government regulates some aspects of sales promotions.
Direct marketing
uses direct communication with consumers to generate:
a. A response in the form of an order.
b. A request for further information.
c. A visit to a retail outlet.
fast-growing form of communication takes many forms:
a. Face-to-face selling, Telemarketing, Direct mail, Direct response advertising, Catalogs and Online marketing.
direct marketing advantages
a. It consists of interactive communication like personal selling.
b. It can be customized to match the needs of specific target markets.
c. Messages can be developed and adapted quickly to facilitate one-to-one relationships with customers.
direct marketing disadvantages
a. It requires a comprehensive and up-to-date database with information about the target market, which is expensive and time consuming.
b. Customer concerns about privacy have led to a decline in response rates.
Explain the difference between advertising and publicity when both appear on television.
Because advertising space on TV is paid for, a firm can control what it wants to say and to whom the message is sent. Because publicity is an indirectly paid presentation of a message about a firm or its goods or services, there is little control over what is said to whom or when.
Which promotional element should be offered only on a short-term basis?
sales promotion
Cost per contact is high with the _____________ element of the promotional mix.
personal selling
Balance the promotional elements based on:
a. The target audience for the promotion.
b. The stage of the product’s life cycle.
c. The characteristics of the product.
d. The decision stage of the buyer.
e. The channel of distribution.
Coordinate a consistent promotional effort since the elements are often the responsibility of different departments—
the essence of an integrated marketing communications approach.
Target Audience
Promotional programs are directed to the ultimate consumer, an intermediary (retailer, wholesaler, or distributor), or both.
· Promotional programs directed to buyers of consumer products use:
a. Mass media to reach large numbers of potential buyers.
b. Personal selling at the place of purchase.
c. Direct marketing to encourage first-time or repeat purchases.
d. Combinations to reach some target audiences.
simultaneous media
is so common it has created 32-hour “media days.” Generation Y is particularly adept: 72 percent is “connected” while watching television.
Promotional programs directed to business buyers:
a. Advertising is used selectively in trade magazines.
b. Personal selling is used because:
· Business buyers often have specialized needs or technical questions.
· A salesperson can provide information and any needed support after the sale.
Personal selling is also the major promotional ingredient for intermediaries. Salespeople:
a. Assist intermediaries in coordinating promotional campaigns sponsored by the manufacturer.
b. Provide marketing advice and expertise.
Product Life Cycle-Purina Dog Chow
Introduction stage.
a. The objective is to inform and generate awareness.
b. All the promotional mix elements are used at this time, although the use of specific mix depends on the product.
Growth stage.
a. The objective is to persuade the consumer to buy the product.
b. Advertising stresses brand differences.
c. Personal selling is used to solidify the channel of distribution.
Maturity stage.
a. The objective is to maintain existing buyers.
b. Advertising is used to remind buyers of the product.
c. Sales promotion (discounts, events, and coupons) helps maintain loyal buyers.
Decline stage.
a. The objective is to phase out the product.
b. Little money is spent on promotion.
Channel Strategies
Two types of promotional strategies help marketers achieve control of and can assist in moving a product through the marketing channel. PUSH & PULL
push strategy
Directs the promotional mix to channel members to gain their cooperation in ordering and stocking the product.
b. Salespeople call on wholesalers and retailers to encourage orders and provide sales assistance.
c. Sales promotions, such a case discounts, are offered to intermediaries to stimulate demand.
d. Marketers push product to channels members so they will push them to their customers.
Pull Strategy
directs the promotional mix at ultimate consumers to encourage them to ask the retailer for a product.
b. Sometimes, manufacturers face resistance from channel members who do not want to order a new product or increase inventory levels of an existing brand.
c. Seeing demand from consumers, retailers order the product from wholesalers, pulling the item through intermediaries.
d. Many firms use direct-to-consumer advertising that:
· Complements traditional personal selling and free samples.
· Is designed to encourage consumers to ask their retailer for the product—pulling it through the channel.
Promotional programs can be directed to _______, to _______, or to both.
the ultimate consumer; an intermediary (retailer, wholesaler, or distributor)
Describe the promotional objective for each stage of the product life cycle.
Introduction—to inform; growth—to persuade; maturity—to remind; and decline—none.
Explain the differences between a push strategy and a pull strategy.
In a push strategy, a firm directs the promotional mix to channel members to gain their cooperation to carry the product. In a pull strategy, a firm directs the promotional mix at ultimate consumers to encourage them to ask retailers for the product, who then orders it from wholesalers.
Due to high media costs
promotion decisions must be made carefully using a systematic approach like the strategic marketing process.
promotion decision process
divided into developing, executing, and evaluating the promotion program.
Identifying the Target Audience
The target audience is the group of prospective buyers toward which the program is directed.
· Is the first decision in developing the promotion program.
· Market segmentation studies help:
a. Identify a firm’s target audience.
b. Develop a firm’s target audience’s profile (lifestyle, attitudes, and values).
Specifying Promotion Objectives-after Identifying Target Audience
a decision must be reached on what the promotion should accomplish.
Consumers respond in terms of a hierarchy of effects, which is the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action—either trial or adoption of the product. These stages are:
a. Awareness. The consumer’s ability to recognize and remember the product or brand name.
b. Interest. An increase in the consumer’s desire to learn about some of the features of the product or brand.
c. Evaluation. The consumer’s appraisal of the product or brand on important attributes.
d. Trial. The consumer’s actual first purchase and use of the product or brand.
e. Adoption. The consumer’s repeated purchase and use of the product or brand based on a favorable experience on the first trial.
· For a totally new product, the sequence applies to the entire product category.
· For a new brand competing in an established product category, it applies to the brand itself.
hierarchy of effects
is the sequence of stages a prospective buyer goes through from initial awareness of a product to eventual action—either trial or adoption of the product.
Setting the Promotion Budget-After Promotion Objective
a company must decide on how much to spend, using one of several budgeting methods.
· Determining the ideal amount for the promotion budget is difficult because there is no precise way to measure the results.
Percentage of sales
The amount of money spent on promotion is a percentage of past or anticipated sales.
b. A common budgeting method, this approach is often stated in terms such as, “Our promotion budget for this year is 3 percent of last year’s gross sales.”
promotion-to-sales ratio to assess -Marketeers often use
how effective the IMC program expenditures are at generating sales. Specifically, the promotion-to-sales ratio can compare programs (1) on a year-to-year basis, (2) with competitor’s programs, and (3) with industry averages.
General Motor’s promotion-to-sales ratio
is substantially lower than Ford’s and slightly lower than the industry average (lower is better). This suggests that GM’s current mix of promotional activities and the level of expenditures are both creating an effective IMC program to generate sales of its vehicles.
Competitive parity
Budgeting matches the competitor’s absolute level of spending or the proportion per point of market share.
All you can afford
Allows money to be spent on promotion only after all other budget items—such as manufacturing costs—are covered.
Objective and task
As the best approach, the company:
a. Determines its promotion objectives.
b. Outlines the tasks to accomplish these objectives.
c. Determines the promotion cost of performing these task
Once a budget has been set
the relative importance of the five basic IMC tools is analyzed based on the objectives specified.
Due to the number and variety of promotional tools available to marketers, there are many possible combinations that can achieve any specific objective.
Marketers use an analytical approach and their experience to:
a. Assess the relative importance of each promotional tool.
b. Select the appropriate tool based on each promotional objective.
promotion mix can vary
from a simple program using a single tool to a comprehensive program using all forms.
Designing the Promotion-central element of a promotion program is
the promotion itself.
a. Advertising consists of advertising copy and the artwork that the target audience is intended to see or hear.
b. Personal selling depends on the characteristics and skills of the salesperson.
c. Sales promotion activities consist of the specific details of inducements.
d. Public relations efforts are seen in tangible elements such as news releases.
e. Direct marketing depends on written, verbal, and electronic forms of delivery.
· The design of the promotion determines the message that is communicated to the target audience and requires the most creativity.
· Successful designs are the result of insights into consumers’ interests and behavior.
· One of the challenges of IMC is to design each promotional activity to communicate the same message.
Selecting the Right Promotional Tools-after budget
Once a budget has been set, the relative importance of the five basic IMC tools is analyzed based on the objectives specified.
· Due to the number and variety of promotional tools available to marketers, there are many possible combinations that can achieve any specific objective.
· Marketers use an analytical approach and their experience to:
a. Assess the relative importance of each promotional tool.
b. Select the appropriate tool based on each promotional objective.
· The promotion mix can vary from a simple program using a single tool to a comprehensive program using all forms.
promotion program should
pretest each design before it is actually used to make changes that improve its effectiveness.
· Similarly, posttests should evaluate the impact of each promotion and its contribution toward achieving objectives.
IMC programs-to fully benefit
companies must create and maintain a test-result database that allows:
a. Comparisons of the relative impact of the promotional tools in various situations.
b. Informed design and execution decisions and provide support for IMC activities during internal reviews by financial or administrative personnel.
Firms with a market orientation are more likely to implement
IMC program.
IMC agencies have adopted “total communications solutions,” such as:
a. Media management, Entertainment, Internet and digital communications, Sports, and event marketing, Direct response media and Multicultural marketing.
To evaluate its IMC programs, a firm uses an IMC audit, which
a. Analyzes the internal communication network.
b. Identifies key target audiences and evaluates customer databases.
c. Assesses messages in recent ads, public relations releases, packaging, video news releases, signage, sales promotion pieces, and direct mail.
d. Determines the IMC expertise of company and agency personnel.
e. This process is becoming increasingly important as consumer-generated media such as blogs, RSS, podcasts, and social networks become more popular.
What are the stages of the hierarchy of effects?
The five stages of the hierarchy of effects are awareness, interest, evaluation, trial, and adoption.
What are the four approaches to setting the promotion budget?
The four approaches are percentage of sales, competitive parity, all you can afford, and objective and task.
How have advertising agencies changed to facilitate the use of IMC programs?
Some agencies have adopted: (1) a total communications solutions approach; (2) a long-term perspective in which all forms of promotion are integrated; and (3) an IMC audit to analyze the internal communication network of their clients.
Direct marketing has many forms
(direct mail, catalogs, direct response advertising, telemarketing, and interactive marketing) and uses a variety of media.
The Growth of Direct Marketing
The increasing interest in customer relationship management is reflected in the dramatic growth in direct marketing.
· Marketers like the ability to customize communication efforts and create one-to-one interactions due to the availability of databases.
· Recently, direct marketing spending, revenues generated, and employment has outpaced total economic growth, due in part to the popularity of the Internet.
Direct Marketing-The value
Consumers benefit from direct marketing efforts, which enables them to:
a. Order goods or services by phone or mail.
b. Respond to a TV offer.
c. Access online services.
d. Make three to five purchases from a catalog each year.
Direct marketing has several benefits. Consumers:
a. Don’t have to go to a store.
b. Can shop 24 hours a day.
c. Save time and money.
d. Avoid hassles with salespeople.
e. Have more fun and privacy than in-store shopping.
f. Receive excellent customer service.
Direct marketing creates customer value through:
a. Toll-free telephone numbers.
b. Representatives with access to purchase preference information.
c. Overnight delivery.
d. Unconditional guarantees.
The value of direct marketing for sellers can be described in terms of the responses it generates:
Direct Orders, Lead generation and Traffic generation
Direct Orders
are the result of direct marketing offers that contain all the information necessary for a prospective buyer to make a decision to purchase and complete the transaction.
Lead generation
is the result of a direct marketing offer designed to generate interest in a product or service and a request for additional information.
Traffic generation
is the outcome of a direct marketing offer designed to motivate people to visit a business.
Databases
are the result of organizations’ efforts to collect demographic, media, and consumption profiles of customers so that direct marketing tools can be directed at specific customers.
Direct marketers face ethical challenges
that are of increasing concern to consumers, governments, and direct marketers. Some of these issues include:
a. Annoying direct marketing activities such as telephone solicitations during dinner and evening hours.
b. Concerns about privacy, which have led to guidelines that balance consumer and business interests.
c. The proliferation of e-mail advertising.
direct-marketing messages are
1 billion e-mail messages sent each day
ONE reason is that e-mail offers one-to-one conversations with each prospective consumer. ANOTHER reason is that the average cost per e-mail message is less than $0.01 compared with $0.75 to $2.00 for direct mail and $1 to $3 for telemarketing.
Marketers believe that
better management of e-mail campaigns will improve the value of e-mail advertising for customers.
Two general approaches are: (1) the “opt-out” system, which allows recipients to decline future messages after the first contact and (2) the “opt-in” system, which requires advertisers to obtain e-mail addresses from registration questions on websites or other means. In the U.S., the Controlling the Assault of Non-Solicited Pornography and Marketing Act (CAN-SPAM) requires e-mail be truthful and to provide an opt-out return e-mail address.
The ability to design and use direct marketing programs has increased with the availability of ___________ and ___________.
customer information databases; new printing technologies
What are the three types of responses generated by direct marketing activities?
They are direct orders, lead generation, and traffic generation.
After listening to a recent sales presentation, Mary Smith signed up for membership at the local health club. On arriving at the facility, she learned there was an additional fee for racquetball court rentals. “I don’t remember that in the sales talk; I thought they said all facilities were included with the membership fee,” complained Mary. Describe the problem in terms of the communication process.
The problem is miscommunication between the sender (the health club representative) and the receiver (Mary Smith) as a result of improper encoding or decoding of the message (the sales presentation). There may have been noise in the channel that prevented proper decoding of the message.
Explain how the promotional tools used by an airline would differ if the target audience were (a) consumers who travel for pleasure and (b) corporate travel departments that select the airlines to be used by company employees.
a. Consumers. When promoting to pleasure travelers, mass advertising would be used because of the large number of potential customers and their wide geographical dispersion.
b. Corporate travel departments. An airline selling to corporate travel departments may rely more on a personal sales calls, since the number of potential customers is relatively small who require complex information that could not be addressed in advertising.
Suppose you introduced a new consumer food product and invested heavily both in national advertising (pull strategy) and in training and motivating your field salesforce to sell the product to food stores (push strategy). What kinds of feedback would you receive from both the advertising and your salesforce? How could you increase both the quality and quantity of each?
In general, you should expect little feedback from your national advertising campaign and better feedback from your salesforce. In either case, if you want to get
high quality, representative feedback, you as the sender must take some proactive steps.
Identify the sales promotion tools that might be useful for (a) Tastee Yogurt, a new brand introduction, (b) 3M self-sticking Post-It Notes, and (c) Wrigley’s Spearmint Gum.
a. Tastee Yogurt. The Tastee Yogurt product is in the introductory stage of the product life cycle. As a result, coupons and in-store free samples may help the introduction.
b. 3M self-sticking Post-It Notes. 3M Post-It Notes are in the mature stage of the product life cycle. As a result, point-of-purchase displays will serve as reminders of a consumer’s need for the product.
c. Wrigley’s Spearmint Gum. Wrigley’s Spearmint Gum is a mature, well-known brand. A premium, which ties this brand into another product or product line, may encourage additional purchases. Additionally, a point-of-purchase display at the counter will encourage impulse purchases.
Design an integrated marketing communications program—using each of the five promotional elements—for Rhapsody, the online music store.
a. Advertising. Ads placed in Billboard, Rolling Stone, Wired, and PC Magazine.
b. Personal selling. Sales calls by a salesperson to record companies to get tracks online.
c. Public relations. Video news releases and press conferences.
d. Sales promotion. Online contest to win free downloads or discounts for first-time users or coupons shrink-wrapped in CD cases.
e. Direct marketing. E-mails to potential customers who have “opted-in” for such contact.
BMW introduced its first sport-utility vehicle, the X5, to compete with other popular all-wheel-drive vehicles such as the Mercedes-Benz M-class and the Jeep Grand Cherokee. Design a direct marketing program to generate (a) leads, (b) traffic in dealerships, and (c) direct orders.
Students should consider the many forms of direct marketing including direct mail and catalogs, television, telemarketing, direct selling, direct response advertising and interactive online marketing. Instructors can remind students of the discussion of nonstore retailing in Chapter 14 and alert them to the online discussion in Chapter 18.
Leads, Traffic in dealership and Direct Orders
Develop a privacy policy for database managers that provide a balance of consumer and seller perspectives. How would you encourage voluntary compliance with your policy? What methods of enforcement would you recommend?
Students’ answers will vary. To begin the discussion, ask students to consider the guidelines provided in the European Union Data Protection Directive. The directive suggests that consumers have the right (1) to be informed of any data processing when they are the data subject, (2) of access to data about them, and (3) to access to the logic on which automated decisions are based. Students should be encouraged to discuss the value of self-regulation versus enforcement by outside bodies in terms of penalties and breadth of items covered. Methods of enforcement discussions should bring out the difficulties and advantages of enforcement in a voluntary membership group. A good strategy would be to compare and contrast well-known examples and to bring the discussion to current topics, such as the regulation of the Internet and e-mail advertising.
The questions also allow managers to identify areas for improvement. They include the following:
Organizational infrastructure, Interactivity, Mission marketing, Strategic consistency and Planning and evaluation
Organizational infrastructure
Is managing reputation a cross-functional responsibility?
· Do managers understand all communication tools?
· Is internal marketing effective?
· Do communication agencies have a monthly contact?
Interactivity
Is there a balance between mass media and one-to-one media?
· Do special programs facilitate customer inquiries and complaints?
· Do databases capture inquiries, complaints, and sales behavior?
· Are databases accessible?
Mission marketing
Is the mission considered in communication planning?
· Does the mission provide a reason for customers to believe the message?
· Are philanthropic efforts concentrated?
Strategic consistency
Are messages reviewed for consistency?
· Is the general message broad enough to allow for compatible subcampaigns?
· Are pricing, distribution, service, and other messages considered?
Planning and evaluation
Is a SWOT analysis used in communication planning?
· Is a zero-based approach used?
· Are brand contact points utilized?
· Are tracking studies used to evaluate customer relationships?
· Do marketing strategies maximize the strengths of the communication tools?
· Is the overall objective to create customer relationships?
Product Advertising
focus on selling a good or service and take three forms: Pioneering advertisements, Competitive advertisements and Reminder advertising
Pioneering advertisements
tell people what a product is, what it can do, and where it can be found.
· Are used in the introductory stage of the product life cycle.
· The key objective is to inform the target market.
· Informative ads are interesting, convincing, and effective.
Competitive advertisements
promote a specific brand’s features and benefits.
· The objective of these ads is to persuade the target market to select the firm’s brand over a competitor’s.
· Comparative advertising:
– Shows one brand’s strengths relative to those of competitors.
– Is an increasingly form of competitive advertising.
– Attracts more attention and increase the perceived quality of the advertiser’s brand.
– Needs market research to provide legal support for their claims.
Reminder advertising
· Is used to reinforce previous knowledge of a product.
· Is good for products that have achieved a well-recognized position and are in the mature phase of their product life cycle. Reinforcement advertising, another type of reminder ad, is used to assure current users they made the right choice.
Institutional advertisements
build goodwill or an image for an organization rather than promote a specific good or service.
· Often this form of advertising is used to support the public relations plan or counter adverse publicity.
Institutional advertisements -Four alternative forms
Advocacy, Pioneering institutional, Competitive institutional and Reminder institutional
Advocacy advertisements
– State the position of a company on an issue.
– Are used when firms make a request related to a particular action or behavior.
Pioneering institutional advertisements
– Are like the pioneering ads for consumer products.
– Announce what a company is, what it can do, or where it is located.
Competitive institutional advertisements
– Promote the advantages of one product class over another.
– Are used in markets where different product classes compete for the same buyers.
Reminder institutional advertisements
simply bring the company’s name to the attention of the target market again.
What is the difference between pioneering and competitive ads?
Pioneering ads tell people what a product is, what it can do, and where it can be found. Competitive ads promote a specific brand’s features and benefits to persuade the target market to select the firm’s brand rather than that of a competitor.
What is the purpose of an institutional advertisement?
To build goodwill or an image for an organization.
Identifying The Target Audience
· Advertisers must identify the target audience to develop an effective advertising program.
· The lifestyles, attitudes, and demographics of target consumers influenced all aspects of an advertising program.
· The scheduling (time of year, geographic area, etc.) of ads also depends on the audience.
· The Federal Communications Commission (FCC) suggests that advertising program decisions be based on market research about the target audience to eliminate possible bias that might result from subjective judgments about some population segments.
example is creating awareness for the offering.
· Helps advertisers with other choices in the promotion decision process, such as selecting media and evaluating a campaign.
Setting the Advertising Budget
The cost of placing a 30-second ad during Super Bowl XLII in 2008 was
$2.7 million.

a. The reason for the escalating cost is the growing number of viewers:
97.5 million people tuned in.
b. Advertisers find this audience attractive because research indicates that it is equally split between men and women.
c. Many people look forward to watching the spots.
d. The ads are effective too.
· As a result, both new and regular advertisers buy ad space during the Super Bowl.

advertising message
Focuses on the key benefits of the product that are important to prospective buyers making trial and adoption decisions.
· Depends on the general appeal used and the actual words included in the ad.
Message Content
Most advertising messages are made up of both informational and persuasional elements that can be combined in an appeal to provide consumers with a reason to act.
· Most persuasive advertisements have some basic information to convey.
· Information contained in ads:
– Includes the product name, benefits, features, and price.
– Is presented to attract attention and encourage purchase.
· The most common appeals marketers use are fear, sex, and humorous.
b. Fear appeals.
· Suggest that consumers can avoid some negative experience through:
– The purchase and use of a product or service.
– A change in behavior.
– A reduction in the use of a product.
· Should be strong enough to get the audience’s attention but not so strong that it will lead them to tune out the message.
c. Sex appeals.
· Suggest to the audience that the product will increase the attractiveness of the user.
· Can be found in almost any product category.
· Are successful at gaining the attention of the audience.
· Have little impact on how consumers think, feel, or act, and may even distract them from the ad’s purpose.
d. Humorous appeals.
· Imply either directly or more subtly that the product is more fun or exciting than competitors’ offerings.
· Is widespread and found in many product categories.
· Tends to wear out quickly, boring the consumer.
· Their effectiveness varies across cultures if used in a global campaign.
Creating the Actual Message
a. Copywriters are responsible for creating the text portion of an ad’s message.
b. Translating a copywriter’s ideas into an actual ad is a complex process.
c. Designing quality artwork, layout, and production for ads:
· Is costly—high-quality 30-second TV ads cost an average of $335,000.
· Is time consuming.
· May require hiring expensive actors and shooting on exotic locations.
· Their effectiveness varies across cultures if used in a global campaign.
d. Advertising agency Berlin Cameron was recently named Advertising Age magazine’s U.S. Agency of the Year for its strategic insight and creativity.
The Federal Communication Commission suggests program decisions be based on __________.
marketing research about the target audience
Describe three common forms of advertising appeals.
Fear appeals suggest that consumers can avoid some negative experience; sex appeals suggest to the audience that the product will increase the attractiveness of the user; and humorous appeals imply fun and excitement.
Advertising media
are the means by which the message is communicated to the target audience and include newspapers, magazines, radio, and TV.
Advertising media selection decision is related to the:
Target audience, .Type of product, Campaign objectives, Available budget, Nature of the message and Costs of the alternative media.
Advertisers use a mix of media forms and vehicles to:
a. Maximize the exposure of the message to the target audience.
b. Minimize costs.
c. These two conflicting goals are critically important to media planning.
Advertisers try to
maximize the number of individuals in the target market exposed to the message.

a. Reach is the number of different people or households exposed to an advertisement. This definition varies among alternative media.
b. Newspapers often use reach to describe their total circulation or the number of different households that buy the paper.
c. Rating
d. Advertisers try to maximize reach in their target market at the lowest cost.
e. Frequency
· Advertisers expose their target audience to a message more than once because it often does not pay close attention to advertising messages.
· With repeated exposure to advertisements, consumers respond more favorably to brand extensions.
f. Gross rating points (GRPs).
· To obtain the appropriate number of GRPs to achieve an advertising campaign’s objective, the media planner must balance reach, frequency, and cost.
g. Cost per thousand (CPM)

Rating
is the percentage of households in a market that are tuned to a particular TV show or radio station.
Frequency
is the average number of times a person in the target audience is exposed to a message or advertisement.
Gross rating points (GRPs)
Is reference number advertisers use that is obtained by multiplying reach (expressed as a percentage of the total market) by frequency.
Cost per thousand (CPM)
is the cost of reaching 1,000 individuals or households with the advertising message in a given medium (M = Roman numeral for 1,000).
Different Media Alternatives
Television, Radio, Magazines, Newspapers, yellow pages, internet, outdoor and other media
Television
a. Television is a valuable medium because it communicates with sight, sound, and motion.

b. Network television reaches 95 percent of U.S. homes.

c. Out-of-home TV reaches millions more viewers in bars, hotels, offices, and college campuses.

d. Because of TV’s high cost (≈ $128,000 for a 30-second prime-time ad):
· Many advertisers choose less expensive “spot” ads, which run between programs in 10-, 15-, 30-, or 60-second lengths.
· Shorter ads:
– Reduce costs.
– Severely restrict the amount of information and emotion that can be conveyed.
· Two different versions of a 15-second commercial, run back-to-back, will increase recall over long intervals.

e. Wasted coverage.
· Is having people outside the market for the product see the advertisement.
· Can be reduced through the specialized cable and direct broadcast (satellite) channels.
– Advertising time is often less expensive on cable and direct broadcast channels than on the major networks.
– There are about 150 cable TV options that reach very narrowly defined audiences.
– Many cable and satellite TV services now offer boxes with built-in digital video recorders (DVRs) and remotes with “30-second skip” buttons for ad-zapping.
f. Infomercials are program-length (30-minute) advertisements that take an educational approach to communication with potential customers.
· More than 90 percent of all TV stations air infomercials.
· More than 25 percent of all consumers have purchased a product as a result of seeing an infomercial.

Radio
a. There are 7 times as many radio stations as TV stations in the U.S.
b. The advantage of using radio is that it is a segmented medium; different market segments listen to a different format, such as all-talk, classic rock, etc.
c. College students are heavy radio listeners at 2.2 hours a day vs. the average of 1.6 hours per day.
d. The disadvantages of using radio are:
· Has limited use for products that must be seen.
· Consumers can tune out a commercial by switching stations.
e. Sirius XM Radio offers over 300 digital-quality coast-to-coast radio channels to consumers for a monthly subscription fee.
f. Radio competes for people’s attention as they do other activities such as driving, working, or relaxing.
g. Peak radio listening time is during the drive times (6-10 AM and 4-7 PM).
Magazines
a. There are more than 19,500 magazines, with new ones launched each year.
b. The advantages of using magazines are that they:
· Appeal to narrowly defined segments that have unique profiles.
· Can create strong images due to good color reproduction.
c. The disadvantage of using magazines is that:
· National costs are high.
· However, many magazines publish regional editions, which reduce absolute cost and wasted coverage.
Newspapers
a. Newspapers have excellent reach potential because they are published daily and therefore allow ads to focus the “24-hour sale.”
b. Local retailers often use newspapers as their sole advertising medium.
c. Consumers rarely save newspapers, although some will clip and save ads.
So firms are limited to ads that call for an immediate customer response.
d. Newspapers do not have as good color reproduction as magazines.
e. National advertising campaigns rarely include newspapers except in conjunction with local distributors of their products.
· In these instances, both parties often share the advertising costs using a cooperative advertising program.
· Some newspapers, such as The Wall Street Journal and USA Today, have national distribution.
Yellow Pages
a. Consumers use:
· Print yellow pages more than 15 billion times annually.
· Online yellow pages an additional 1.6 billion times per year.
· The 7,000+ yellow page directories reach almost all telephone households.
c. Advantage: Yellow pages are a directional medium because they help consumers know where purchases can be made after other media have created awareness and demand.
d. Disadvantage: Printed versions of yellow pages lack timeliness since they can only be updated with new information once each year.
Internet
Is a relatively new medium for advertisers.

a. The advantages of using online advertising:
· Offers a visual message similar to print advertising.
· Can use the audio and video capabilities of the Internet to:
– Attract more attention from viewers.
– Provide an element of entertainment to the message.
· Allow for rich media, which are interactive ads that use drop-down menus, games, or search engines to engage viewers.
· Reach younger consumers who have developed a preference for online communication.

Online advertising disadvantages
is the difficulty of measuring its impact and effectiveness.
· Some firms are testing methods of tracking where viewers go on their computer in the days and weeks after seeing an ad.
· Nielsen Online Ratings is a rating service that measures actual click-by-click behavior through meters installed on peoples’ computers at home and work.
· Permission-based advertising is where viewers agree to watch a commercial online in exchange for points, samples, or access to premium content and advertisers only pay for completed views.
Online advertising advantage
is that they only pay when someone clicks on their ad. Unfortunately, the growth of the medium has led to “click fraud,” which is the deceptive clicking of ads solely to increase the amount advertisers must pay.

There are several forms of click fraud. Paid-to-Read (PTR) websites recruit and pay members to simply click on ads. Another is “clickbots,” which are software programs that produce automatic clicks on ads. A third is “webtipping,” in which legitimate website visitors click on ads to keep the site free. These activities are difficult to detect and stop. Experts estimate that up to 15% of clicks may be the result of fraud and may cost advertisers as much as $500 million each year!

Google and Yahoo! try to filter out illegitimate clicks, although some advertisers claim that they are still charged for PTR and clickbot traffic. Each has settled class action lawsuits and agreed to provide rebates or credits to advertisers who were charged for fraudulent clicks.

Outdoor advertising
a. is effective for reminding consumers about a product.
b. Billboards are the most common form of outdoor advertising.
· The advantages of using billboards are:
– Has good reach and frequency in a desired geographical area.
– Has been shown to increase purchase rates.
– Is a good visual and supplemental reinforcement for well-known products.
– Is a relatively low-cost, flexible alternative.
· The disadvantages of using billboards are:
– No opportunity exists for lengthy advertising copy.
– A good billboard site depends on traffic patterns and sight lines.
– In many areas, environmental laws have limited or banned the use of this medium.
c. Transit advertising.
· Is common in metropolitan areas.
· Includes messages on the interior and exterior of buses, subway cars, and taxis.
· Advantages are:
– Mass transit is growing.
– Selectivity is available to advertisers, who can buy space by neighborhood or route.
· A disadvantage is that during heavy travel times when the audiences are the largest, people may find it difficult to read the message.
Other Media
a. Advertisers are now using a variety of nontraditional advertising options called place-based media because traditional media have become more expensive and cluttered.
b. Messages are placed in locations that attract a specific target audience, such as airports, doctors’ offices, health clubs, theaters, gas pumps, elevators, and other locations.
Three factors must be considered when scheduling a product ad:
Buyer turnover, Purchase frequency and Forgetting rate
Buyer turnover
Is how often new buyers enter the market to buy the product.
· The higher the buyer turnover, the greater is the amount of advertising required.
Purchase frequency
which means that the more frequently the product is purchased, the less repetition is required.
Forgetting rate
which is the speed with which buyers forget the brand if advertising is not seen.
Setting schedules requires
an understanding of how the market behaves. Most companies follow one of three basic approaches:
a. Continuous (steady) schedule.
b. Flighting (intermittent) schedule
c.
· Pulsing schedules are superior to other advertising strategies.
Continuous (steady) schedule
When seasonal factors are unimportant, advertising is run at a continuous or steady schedule throughout the year.
Flighting (intermittent) schedule
Periods of advertising are scheduled between periods of no advertising to reflect seasonal demand.
Pulse (burst) schedule
Flighting and continuous schedules are combined due to increases in demand, heavy periods of promotion, or introduction of a new product.
You see the same ad in Time and Fortune magazines and on billboards and TV. Is this an example of reach or frequency?
frequency
Why has the Internet become a popular advertising medium?
The Internet offers a visual message, can use both audio and video, is interactive through rich media, and tends to reach younger consumers.
Describe three approaches to scheduling advertising.
continuous (steady) schedule; flighting (intermittent) schedule; and pulse (burst) schedule.
Executing the advertising program involves:
a. Pretesting the advertising copy.
b. Actually carrying out the advertising program.
Evaluating advertising efforts before and after the ads are run in the campaign ensures that
advertising expenditures are not wasted.
Pretests
are conducted before an advertisement is placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisement.
Portfolio Tests
a. Used to test copy alternatives.
b. The test ad is placed in a portfolio with other ads and stories.
c. Afterward, consumers are asked for their impressions of the ads.
Jury Tests
. Involve showing the ad copy to a panel of consumers and having them rate:
· How they liked it.
· How much it drew their attention.
· How attractive they thought it was.
b. Unlike the portfolio test, consumers see only the ad of interest.
Theater Tests
a. Are the most sophisticated form of pretesting.
b. Consumers are invited to view new television shows or movies in which test commercials are also shown.
c. Viewers register their feelings about the ads either during the viewing or afterward.
Responsibility for actually carrying out the advertising program can be handled in one of three types of agencies:
full-service, Limited-service and In-house agencies
Full-service agency
a. Provides the most complete range of services, including market research, media selection, copy development, artwork, and production.
b. Develop and place ads for a client traditionally charge a commission of
15 percent of media costs.
c. With IMC approaches, most advertisers have switched from paying commissions to incentives or fees based on performance.
d. The most common performance criteria are sales, brand and ad awareness, market share, and copy test results.
Limited-service agencies
a. Specialize in one aspect of the advertising process.
b. Provide creative services to develop the advertising copy.
c. Buy previously unpurchased media space.
d. Provide Internet services.
e. Are compensated by a contractual agreement for the services performed.
In-house agencies
a. Consists of the company’s own advertising staff.
b. May provide full services or a limited range of services.
Ads
must be posttested to determine whether they achieve
Posttests
are conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose.
Aided Recall
the Starch test determines the percentage of those who:
a. Remember reading, viewing, or listening to the ad (noted).
b. Saw or read any part of the ad identifying the product or brand
(seen-associated).
c. Report reading at least half the ad (read most).
d. Elements of the ad are then tagged with the results.
Unaided Recall
Respondents are asked a question such as, “What ads do you remember seeing yesterday?” without any prompting to determine whether they saw or heard the messages.
Attitude Tests
Respondents are asked questions to measure changes in their attitudes before and after an advertising campaign to assess if they have a more favorable attitude toward the product advertised.
Inquiry Tests
a. Additional product information, product samples, or premiums are offered to an ad’s readers or viewers.

b. Ads generating the most inquiries are judged the most effective.

Sales Tests
Consists of controlled experiments or consumer purchase tests that allow a manufacturer, a distributor, or an advertising agency to:

a. Manipulate an advertising variable (such as schedule or copy).
b. Observe subsequent sales effects by monitoring data collected at checkout scanners.

Explain the difference between pretesting and posttesting advertising copy.
Pretests are conducted before ads are placed in any medium to determine whether the ads communicate the intended message or select among alternative versions. Posttests are conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose.
What is the difference between aided and unaided recall posttests?
Aided recall involves showing an ad to respondents who then are asked if their previous exposure to it was through reading, viewing, or listening. Unaided recall involves asking respondents if they remember an ad without any prompting to determine if they saw or heard its message.
Sales promotion
is a key element of the promotional mix, which now accounts for more than $342 billion in annual expenditures.
Allocation of marketing expenditures
reflects the trend toward integrated programs that include a variety of promotion elements.
Consumer-oriented sales promotions, or simply consumer promotions
are sales tools used to support a company’s advertising and personal selling directed to ultimate consumers.
Coupons
are sales promotions that usually offer a discounted price to the consumer, which encourages trial.
· 286 billion coupons are distributed in the U.S. annually.
· The redemption rate is about 0.5%, although it declined recently due to the decline in the average expiration period—to about three months—giving consumers less time to redeem them.
· The average face value of redeemed coupons is $1.27.
b. Some firms have actually increased their use of coupons.
c. Coupons generated at Internet sites and over cell phones are increasing.
d. Coupons are often a key element in an IMC program.
e. Coupons are often far more expensive than their face value.
· They can cost three times that after paying for the advertisement, dealer handling, clearinghouse costs, and redemption.
· Misredemption, or paying the face value of the coupon even though the product was not purchased, should be added to the cost of the coupon.
Deals
Are short-term price reductions, such as a “2 for 1” deal, which are used to:
a. Increase trial among potential customers.
b. Retaliate against a competitor’s actions.
Premiums
a. Consists of either merchandise offered free or offered at a significant savings over its retail price.
b. With a self-liquidating premium, the cost charged to the consumer covers the cost of the item.
c. Premiums encourage customers to return or use more of the product.
Contests
Are where consumers apply their skill or analytical or creative thinking to try to win a prize.
Sweepstakes
a. Require participants to submit an entry but require no analytical or creative effort by the consumer.
b. Consists of two variations:
· One that offers products that consumers value.
· One that offers an “experience” as the prize.
c. Federal and state laws:
· Regulate fairness.
· Ensure the chance for winning is stated.
· Guarantee that prizes are awarded.
Samples
a. Sampling is the offering of a product free or at a greatly reduced price.
b. Sampling is often used for new products.
c. A trial size is offered that is smaller than the regular package size.
d. If consumers like the sample, marketers hope they will remember and buy the product.
e. Firms invest more than $2 billion in sampling programs annually.
Loyalty Programs
a. Is a sales promotion tool that offers consumers a premium to encourage and reward repeat purchases.
b. The most popular are frequent-traveler programs used by airlines, hotels, etc. to reward loyal customers.
Point-of-Purchase Displays.
a. A point-of-purchase display takes the form of advertising signs, which sometimes actually hold or display the product.

b. They are often located in high-traffic areas near the cash register or the end of an aisle.

Rebates
a. The cash rebate offers money based on proof of purchase.
b. On lower-priced items, many buyers never mail in proof of purchase to take advantage of the rebate due to the time and trouble.
c. Online consumers are more likely to use rebates.
Product Placement
involves the use of brand-name products in a movie, television show, video, or commercial for another product.
b. A reverse product placement brings fictional products to the marketplace.
Trade-oriented sales promotions, or simply trade promotions
are sales tools used to support a company’s advertising and personal selling directed to wholesalers, distributors, or retailers.
Allowances and Discounts.
Trade promotions, Allowances and discounts, Merchandise allowances, case allowance, finance allowance
Trade promotions
often focus on maintaining or increasing inventory levels in the channel of distribution.
Allowances and discounts
are effective methods, but overuse can lead to changes in ordering patterns.
Merchandise allowances
reimburse a retailer for extra in-store support or special featuring of the brand.
· Consists of a percentage deduction from the list case price ordered during the promotional period.
· Manufacturers do not pay for allowances until they see proof of performance.
Case allowance
is a discount on each case ordered during a specific time period and is deducted from the invoice.
· These allowances are usually deducted from the invoice.
· A variation of the case allowance is the “free goods” approach, whereby retailers receive some amount of the product free based on the amount ordered.
finance allowance
pays retailers for financing costs or financial losses associated with consumer sales promotions. This can take the form of:
· A floor stock protection program, in which manufacturers give retailers a case allowance price for products in their warehouse, thereby preventing stockouts during the promotional period.
· Freight allowances, which compensate retailers that transport orders from the manufacturer’s warehouse.
Cooperative advertising
occurs when a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products.
b. The manufacturer pays a percentage, often 50 percent, of the cost of advertising up to a certain dollar limit based on the purchases the retailer makes of the manufacturer’s products.
c. The manufacturer also furnishes the retailer with a selection of different print or broadcast ads for the retailer to adapt and use.
manufacturer often spends
time and money helping to train the reseller’s salesforce about the manufacturer’s products to increase sales performance.
b. Methods include providing manuals and brochures to educate the reseller’s salesforce, which then uses them in selling situations.
Public relations
seeks to influence the image of an organization and its products and services.
Publicity tools
are methods of obtaining nonpersonal presentation of an organization, good, or service without direct cost.
News release
Consists of an announcement regarding changes in the company or the product line.
· Is issued to inform a newspaper, radio station, or other medium of an idea for a story.
· More than 40 percent of all free mentions of a brand name occur during news programs.
News conference
Is where representatives of the media are all invited to an informational meeting, and advance materials regarding the content are sent.
· Is often used when negative publicity requires a company response.
Public service announcements (PSA)
Are free space or time donated by the media.
· Nonprofit organizations rely heavily on them.
Which sales promotional tool is most common for new products?
samples
Which trade promotion is used to encourage local advertising efforts of resellers?
cooperative advertising.
What is a news release?
A news release is an announcement regarding changes in the company or the product line.
How does competitive product advertising differ from competitive institutional advertising?
Competitive product advertising promotes a brand’s specific features and benefits. Competitive institutional advertising is used at the product class, rather than brand level. For example, a competitive product ad might emphasize the benefits of Perdue chickens versus other brands. A competitive institutional ad would emphasize the advantage of eating chicken rather than beef.
Suppose you are the advertising manager for a new line of children’s fragrances. Which form of media would you use for this new product?
The answer to this question depends on whether you are focusing on the child who might use the product or the parent who might be the primary purchaser of the product.
If the target is children, television is probably the best medium to reach this audience. With parents, however, you have more latitude in your choice. Magazines are probably the best choice because they can provide efficient reach to this segment of the population.
You have recently been promoted to be director of advertising for the Timkin Tool Company. In your first meeting with Mr. Timkin, he says, “Advertising is a waste! We’ve been advertising for six months now and sales haven’t increased. Tell me why we should continue.” Give your answer to Mr. Timkin.
It is important to tell Mr. Timkin that it is difficult to measure the effects of advertising on sales. First, many factors (competitors, the environment, distribution) can affect sales. Second, the impact of advertising on sales may take more than six months to become apparent—it is possible that people who have seen the ads have not yet purchased the product. Third, Mr. Timkin may be correct—the advertising may be wasted coverage—the message either is not be decoded properly (see Chapter 15) or is not reaching the intended target audience. If so, the message and/or media alternatives used need to be analyzed and adjusted before additional expenditures are made.
A large life insurance company has decided to switch from using a strong fear appeal to a humorous approach. What are the strengths and weaknesses of such a change in message strategy?
This change involves a somewhat difficult tradeoff. Strong fear appeals are effective in getting the audience’s attention, but they may tune out the message because people don’t like to be reminded that they are mortal. Humorous appeals also can get attention, in part because they are not used very frequently in this industry. However, they may not provide enough motivation for the consumer to take action. Some people might also argue that it is inappropriate to make fun of the very serious subject of death. The Prudential Insurance Company did use humorous appeals in their advertising for life insurance for a number of years with some success.
Some national advertisers have found that they can have more impact with their advertising by running a large number of ads for a period and then running no ads at all for a period. Why might such a flighting schedule be more effective than a continuous schedule?
Flighting can be especially effective when seasonal demands exist for the product, such as for lawn and garden equipment. Also, such periods of advertising can complement periods of heavy sales promotion such as a special event or contest. Another benefit of flighting is that by running a large block of advertising at one time, the marketer can sometimes achieve both greater reach and greater frequency in a short period of time.
The advertiser then relies on the effects of the campaign during the period of no advertising.
Each year managers at Bausch & Lomb evaluate the many advertising media alternatives available to them as they develop their advertising program for contact lenses. (a) What advantages and disadvantages of each alternative should they consider? (b) Which media would you recommend to them?
a. The advantages and disadvantages of advertising media (excluding outdoor) for Bausch & Lomb managers include the following:
b. Since contact lens buyers require detailed information about the product and a relatively long purchase period, magazines are the best advertising medium.
What are two advantages and two disadvantages of the advertising posttests described in the chapter?
The main advantages and disadvantages for each are listed below:
Federated Banks is interested in consumer-oriented sales promotions that would encourage senior citizens to direct deposit their Social Security checks with the bank. Evaluate the sales promotion options, and recommend two of them to the bank.
Sales promotion alternatives such as coupons, contests, sweepstakes, samples, rebates, and product placement are better suited to consumer goods than to this service. Continuity programs are expensive and would require setting a minimum bank balance that might exclude too many in the target audience. The two sales promotion options most promising to reach senior citizens are deals and premiums. Deals and Premiums
How can public relations be used by Firestone and Ford following investigations into complaints about tire failures?
Although public relations personnel usually focus on communicating positive aspects of the business, they may also be called on to minimize the negative impact of a problem or crisis. Debates between Firestone and Ford about the cause of tire failures created a difficult situation for both public relations departments. Genuine concern and desire to prevent future accidents was demonstrated by the recall of the tires, and by investigations into the problem.
The main message for each company to communicate is
(1) its regret that anyone should have died, (2) its determination to track down the cause(s) of the accidents, and (3) its commitment to making all vehicles/tires as safe as possible. This three-part message can be communicated in news releases as parts of the investigation are completed and as any newly developed safety measures are announced. News conferences can be held for the announcement of major investigative findings and major new developments. An opportunity may arise to use a high-visibility individual to emphasize product safety.
Online advertising generally takes two forms:
Display and Search-based advertising
Display advertising
This form of online advertising is typically found on portals and home pages. Advertisers pay a fee, sometimes as high as $300,000 for 24 hours, to have their ad appear on a website. The three big portals (Yahoo, AOL, and MSN) alone reach an audience of 50 million people each day. In addition, the broadband connections allow advertisers to deliver TV-like ads online.
Search-based advertising
This form of advertising uses the key words typed into search engines such as Google to select the ad that is displayed alongside the search results. This form of advertising has been attractive to advertisers who are new to the online medium.
Why is online advertising so popular?
First, the large number of people who are online means that the Web can provide access to mass audiences. Second, online advertising allows advertisers to receive instant feedback by monitoring “clicks” and online sales. Finally, online advertising offers access to people at work during the day. Between 30 and 45 percent of all workers report that they often use workplace internet for personal reasons, giving advertisers an alternative to traditional prime-time (8 PM to 11 PM) television advertising
Despite the growth in online advertising, it still represents less than 5% of all advertising expenditures. Experts predict that interest will continue to grow and the future will bring new forms of online ads and improved audio and visual elements. The ability to target consumers should also improve – so if you own a cat, you should never see a dog food ad!