Transcript Grewal and Levy, 1e - Texas Tech University

Marketing
Chapter 18
Advertising and
Sales Promotions
Dhruv Grewal
Michael Levy
McGraw-Hill/Irwin
Copyright © 2008 by the McGraw-Hill Companies, Inc. All rights reserved.
18-2
Altoids and Ice Breakers
Or is it Ice?
Is it Liquid?
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18-3
Advertising
To be considered advertising:
1. Someone has paid to get the message shown.
2. Must be carried by some medium.
3. Legally the source of the message must be
known or knowable.
4. A persuasive form of communication.
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Steps in Planning an Ad Campaign
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Identify Target Audience
Tone of Message
Target Market
Media Selection
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Set Advertising Objectives
Pull strategy
Push strategy
Advertising plan
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Test Your Knowledge
Which of the following attempts to motivate the retailers to
purchase one firm’s product, rather than the products of
competitors?
A)
advertising plan
B)
informative advertising
C)
push strategy
D)
pull strategy
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Advertising Objectives
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Inform
Persuade
Remind
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Museum of Modern Art, NY
Discussion question
How does this ad
inform, persuade,
and remind?
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Informative Advertising
Early in the PLC firms use
informative advertising to
educate consumers about
the product/service.
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Persuasive Advertising
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Generally occurs in the
growth and early maturity
stages of the PLC when
competition is most intense
In the later stage of the PLC
may be used to reposition an
established brand
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Reminder Advertising
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After the products
have gained market
acceptance
Top-of-the-mindawareness
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Test Your Knowledge
Quiznos comparing themselves against Subway and showing
that their sandwiches have more meat is an example of
_______________.
A)
reminder advertising
B)
informative advertising
C)
top-of-the-mind awareness
D)
persuasive advertising
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Focus of Advertisements
Product-focused
advertisements
Institutional
advertisements
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Primary versus Selective Demand
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Social Marketing
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Public Service Advertising
(PSA)
Under Federal
Communication
Commission rules
broadcasters must devote
a specific amount of free
airtime to PSA’s
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The AdCouncil
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Ethical Dilemma 18.1: The TRUTH
Takes Hold
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How to get young consumers
to quit smoking?
Part of the tobacco settlement
“raising generation that would
be smoke free”
TRUTH uses a hard-hitting
media campaign
In your face ads
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Determining Advertising Budget
Considerations:
1. Role that advertising plays in their attempt to
meet their overall promotional objectives.
2. Expenditures vary over the course of the PLC.
3. Nature of the market and the product influence
the size of the budget.
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Convey the Message
Unique selling proposition
Boost Mobile….Where you at?
Nokia….. Connecting People
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The Appeal
Informational appeal
Emotional appeal
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The Right Appeal to Change an Image
How can a firm change its image using
advertising?
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Case in Point: Wal-Mart
Challenge
Answer
Results
To stop the trend of decreasing
same store sales.
Refocus advertising away from
featuring the stores merchandise to
appeal to more affluent consumer,
and instead focus more on “political
style” ads targeted at working
families. Informs family of the
amount ($2,300) Wal-Mart saves
them per year.
Ads are in test marketing, but will be
launched using a national media buy.
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Evaluate and Select Media
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Media planning
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Media mix
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Media buy
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Mass and Niche Media
Mass media reach
large anonymous
audience
Niche media reach a
smaller more
targeted audience
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Test Your Knowledge
What type of media typically accounts for the largest portion of
the media buy?
A)
Internet
B)
Television
C)
Direct mail
D)
Newspapers
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Choosing the Right Medium
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Choosing the Right Medium (continued)
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Determine the Advertising Schedule
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Continuous
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Pulsing
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Flighting
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Create Advertisements
The type of
medium
determines the
execution style
The execution
style must match
the medium and
objectives
Create
advertisements
Creativity should
not overshadow
the message
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Creativity plays
a major role in
the execution
stage
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Creative Elements
Discussion question
What appeal is being used
in this advertisement? Is
this ad effective in delivering
the selling message?
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Test Your Knowledge
When employing a combination of media, why must advertisers
maintain consistency across the execution styles?
A)
To deliver a consistent and compelling message
B)
To reduce costs on the advertising budget
C)
To impact the largest part of their target audience
D)
To increase exposure time
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Managing Creative Elements
What to do when creative ads don’t deliver the
selling message?
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Case in Point: Volkswagen
Challenge
Answer
Results
To redefine ad strategy when
sales are still lagging.
Analysis of the current ad
campaign revealed that though
consumers loved the creative
approach it was not translating into
sales. Too many disparate ads.
Return to a more coherent ad
strategy centered around a
consistent theme.
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Assess Impact
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Pretesting
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Tracking
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Posttesting
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Regulatory and Ethical Issues in
Advertising
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Puffery
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Sales Promotions
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Can be targeted at either
the end user consumers
or channel members
Can be used in either
push or pull strategies
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Types of Sales Promotion
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Sales Promotion
Discussion question
What form of sales promotion
is represented in this ad? Do
you feel it is an effective
promotion?
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Types of Sales Promotion (Continued)
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Using Sales Promotion Tools
Pop-up stores
Cross-promoting
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Test Your Knowledge
To achieve a successful cross-promotion, the two products must
_______________.
A)
be in the same price range
B)
appeal to the same target market
C)
cause an emotional customer response
D)
not contain puffery
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Adding Value 18.1: The Cat’s Meow
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Meow Mix Company, has the leading dry cat
food brand
To launch its new wet food they wanted a unique
promotion
The used a pop-up store on 5th Avenue in New
York, for cats and their owners
The store was so popular that people called
wanting to open franchises
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Meow Mix Cafe
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Chapter 18 Glossary
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Advertising plan: A section of the firm’s overall marketing plan that explicitly outlines the objectives
of the advertising campaign, how the campaign might accomplish those objectives, and how the firm
can determine whether the campaign was successful.
Continuous advertising schedule: Runs steadily throughout the year and therefore is suited to
products and services that are consumed continually at relatively steady rates and that require a
steady level of persuasive or reminder advertising.
Cross-promoting: Efforts of two or more firms joining together to reach a specific target market.
Flighting advertising schedule: An advertising schedule implemented in spurts, with periods of
heavy advertising followed by periods of no advertising.
Institutional advertisements: Used to inform, persuade, and remind consumers about issues
related to places, politics, an industry, or a particular corporation.
Media buy: The actual purchase of airtime or print pages.
Media mix: The combination of the media used and the frequency of advertising in each medium.
Media planning: The process of evaluating and selecting the media mix that will deliver a clear,
consistent, compelling message to the intended audience.
Pop-up stores: Temporary storefronts that exist for only a limited time and generally focus on a new
product or a limited group of products offered by a retailer, manufacturer, or service provider; give
consumers a chance to interact with the brand and build brand awareness, but are not designed
primarily to sell the product.
Posttesting: The evaluation of an IMC campaign’s impact after it is has been implemented.
Pretesting: Assessments performed before an ad campaign; is implemented to ensure that the
various elements are working in an integrated fashion and doing what they are intended to do.
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Chapter 18 Glossary (continued)
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Product-focused advertisements: Used to inform, persuade, or remind consumers about a specific
product or service.
Public service advertising (PSA): Advertising that focuses on public welfare and generally is
sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or
political groups; a form of social marketing.
Puffery: The legal exaggeration of praise, stopping just short of deception, lavished on a product.
Pulsing advertising schedule: Combines the continuous and flighting schedules by maintaining a
base level of advertising but increasing advertising intensity during certain periods.
Sales promotions: Special incentives or excitement-building programs that encourage the purchase
of a product or service, such as coupons, rebates, contests, free samples, and point-of-purchase
displays.
Social marketing: The application of marketing principles to a social issue to bring about attitudinal
and behavioral change among the general public or a specific population segment.
Tracking: Includes monitoring key indicators, such as daily or weekly sales volume, while the
advertisement is running to shed light on any problems with the message or the medium.
Top-of-the-mind awareness: A prominent place in people’s memories that triggers a response
without them having to put any thought into it.
Unique selling proposition: A strategy of differentiating a product by communicating its unique
attributes; often becomes the common theme or slogan in the entire advertising campaign.
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