Slide 1

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 2

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 3

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 4

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 5

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 6

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 7

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 8

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 9

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 10

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 11

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 12

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 13

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 14

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 15

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 16

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 17

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 18

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 19

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 20

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 21

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 22

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 23

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 24

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 25

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 26

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 27

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 28

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 29

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 30

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 31

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 32

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 33

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 34

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 35

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 36

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 37

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 38

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 39

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 40

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 41

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 42

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 43

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 44

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 45

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 46

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 47

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 48

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 49

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 50

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 51

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 52

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”


Slide 53

What is advertising?
Advertising and marketing are not the same
thing. Consumers equate the two because
advertising is the most visible component of
marketing. However, it is only one component.

Advertising is most important for
products and services that are:
Identical:
If there is little or no difference among brands, the
one with the best advertisement wins.

Mass marketed
Advertising to millions in order
to sell products to millions.

Easy to describe
A complex product needs more than just advertising to encourage
people to purchase it; simple products can be easily advertised

Advertising is important to:
Low priced:
Low priced items need an increased awareness amongst
consumers for the product. Compare this to luxury
items, which are not advertised as much if at all.

New:
A new product needs to encourage
consumers to buy the product

Heavily competitive:
If there is a lot of competition within a particular industry,
advertising is used to attract as many consumers in the
limited number to purchase your product as opposed to
that of the competition.

Goals of advertising
Brand Awareness and Positioning:
Consumers become aware of brands usually by hearing about it, or seeing
others use it. Advertising with a focus on creating brand awareness
informs the target market about the brand name, benefits, appearance,
how to obtain, etc.
Brand Trial
To entice customers to try a product, incentive is given
through advertising. Often this is in the form of discount
coupons, free samples, give aways.

Brand Preference
Try to convince consumers that your brand has a better
value equation than the competition, try to influence
consumer’s brand preference.

Goals of advertising – cont’d
Brand Repositioning
As societal and technical changes occur,
products are often repositioned for new or
different target markets. Often these products
are at the decision stage of the PLC. The
danger here is the possible alienation of the
original customers.

Brand Reminder
As new brands come onto the market, older,
more established brands need to inform
customers that they are still out there.

Creating the Message
Advertising is a form of communication, trying to
communicate an idea from one person to another.
The process follows a specific flow:
Intent

→ Message →

Media

→ Reception →

Action

Effective advertising needs to have an objective or goal (intent)
which the creators know before making the advertisement. This
objective helps in the development of the message.

Turning an intent into a message -Step 1
Research the product to determe the USP and big idea -USP (Unique Selling Point): look for the feature or benefit that cannot
be duplicated by another product or service the big idea is the simple
message that will communicate the USP to the audience.

Winning USP Examples:
Package Shipping Industry
Pain - I have to get this package delivered quick!
USP - "When it absolutely, positively has to be there overnight.“

Winning USP Examples:
Food Industry
Pain - The kids are starving, but Mom and Dad are too tired
to cook!
USP - “Put food on the table without stepping foot in the kitchen ”
Cold Medicine Industry
Pain - You are sick, feel terrible, and can't sleep.
USP - "The nighttime, coughing, achy, sniffling, stuffy head, fever, so you can rest
medicine."

Candy Industry
Pain - You get melted chocolate on your hands...
USP - " The milk chocolate melts in your mouth, not in your hand"

Creating the Message – step 2
Selecting an appeal that will communicate to the target market:
Advertisements can appeal to consumers in one of four major motivation
areas (sometimes a combination of several of them):
Biological Appeals: Focus on consumer’s basic needs for health and security.
Emotional Appeals: Focus on consumer’s feelings; Make the consumer
believe the product will effect them the same way as the ad. Subaru
Rational Appeals: Focus on consumer’s reasoning abilities, stressing
convenience, savings, safety, logical reasons to buy or not buy product. Often
uses the value equation to prove worth of product or service.

Social Appeals: Focuses on how social pressures influence consumer
behaviour. Society sets standards, shows what is acceptable. Usually sets up a
negative situation and shows the solution.

Selecting the Media
Factors Used to Determine Medium:
Reach
The number of people exposed to your message. Magazine and newspaper
use circulation statistics to express reach. Television and radio calculate
reach by figuring out the total number of people watching/listening at any
one time. Most media set prices based on reach.
Frequency
Number of times an audience will hear/see ad in a specific time period
Selectivity
The ability of the chosen medium to focus on your target audience. Some
companies want a broad target market, some want to advertise to a small,
specific group which will use their product. Specialty products (ie. Protein
products for weightlifters) will do better to advertise in a muscle magazine
than in a local newspaper; they will reach their target market more effectively
because of the selectivity of the medium.

Factors Used to Determine Medium – cont’d
Durability
The length of time the advertisement lasts. Newspapers last 24 hours,
magazines last longer. TV/radio ads have no durability, unless the
program is recorded. The more durable the ad, the more frequently the
audience can refer to it.
Lead-Time
The amount of time required to prepare an ad for that medium. TV and
magazines require a lead-time of a few weeks, radio and newspaper need only
a few days. A short lead-time may be advantageous if an ad is in response to a
special event.
Mechanical Requirements
The technical complexity of preparing the ad for the selected medium. Radio ads are
simple to prepare, TV ads are a lot more complex. This complexity is part of the
reason companies will hire ad agencies rather than try to film commercials
themselves.

Factors Used to Determine Medium – cont’d - 2
Clutter
The competition for the audience’s attention while they are reading/listening to
your advertisement:
Internal clutter refers to other ads on the same page which are vying for your
audience’s attention;

External clutter refers to other activities
which accompany the consumption of
media—is the person sitting in a quiet
chair, relaxed, or in bumper-to-bumper
traffic in the 401 (and therefore not
listening to your ad on the radio
because they’re concentrating on the
car in front of them)?

Factors Used to Determine Medium – cont’d - 3
Costs
The amount of money involved in preparing the ad and paying for the space and
time in the selected medium. Cost is usually expressed as how much it costs to
reach 1000 people using that type of media at that time, the short form being CPM
(M is Roman numeral for 1000). A $2,000 advertising campaign which will reach
200,000 people has a CPM of $10.

Break...

To do:
1.Compete Study Notes on this section
2. Name the “appeal” of the ads on
slides 43, 45, 50 and 51

Types of Media
Magazines
- Used to reach very specific consumers.
- Most consumers are reluctant to throw magazines
away, so they are often read several times.
- Generally printed in colour. Since advertisements
on the inside front and back cover are seen the most
often a premium is charged for them.
-A full colour ad is costly, most small companies
cannot afford to advertise in magazines.
- Often requires a lot of lead time
(many magazines are monthly)

Types of Media - 2
Newspapers
-Excellent media for local advertisers, usually community based.
- Wide variety of ad sizes/prices. Short lead time required.
- Newspapers are retained for up to a week, but rarely referred to more than once,
- Difficult to establish a demographic, outside of specific sections of the paper.
-Ads sometimes get lost in the clutter.
Television
-Can reach hundreds of millions of people at once, sometimes only a few hundred
(ie. Local community station, 3:00am).
-TV ads are costly to create, and require a lot of lead time.
- Technically more complex than magazine ads.
- Clutter is a major problem, often the consumer
leaves during commercials.
- Not durable.

Types of Media - 3
Radio
-Radio is everywhere, has a good local reach, ads don’t require a lot of lead time
and are not as complex (expensive) to create.
- Can be selective about advertising based on day parts: early morning, wake-up,
morning drive… Station format (type of programming) will attract specific
audience, can tailor message to a certain demographic easier than TV.
- A radio ad has no frequency or durability, so more spots need to be bought.
-Ads can be more creative because of lack of visual.
Out-of-home
- Billboards, bus and subway advertising, shelters, taxis, etc.
- Have excellent frequency (you may see the same billboard 40 times a month)
To achieve 100% frequency, advertisers must purchase (rent) many showings or faces
(space).
-Ad prep takes a lot of lead time, technically complex (can’t simply “print” billboard ad
on regular printer).
- A lot of clutter, but an effective ad can cut through that. Ads need to be brief (most
often viewed while moving), usually a large headline and illustration.

Types of Media - 4

Types of Media - 5
Direct-to-home
Most often called “junk mail”.
Come in two forms:
Target campaigns: use specific mailing lists to reach a specific group of
people. Small reach, but high selectivity. Junk mail specifically addressed to
you.

Aggregate campaigns: local distribution company used to saturate an area
with advertising. These have reach but no selectivity.
- Mailing costs may be expensive, ad needs to look polished and professional - Unless well thought, there is little durability.

Types of Media - 6
Internet
Three major types:
- company web sites,
- banner ads
- email advertising.
-Selectivity of web sites is high because most people are there because
they want to be.
- Banner ads may or may not be effective depending on the number of hits
a site receives.
- The biggest problem with email is spammers, although many legitimate
companies maintain email subscription lists with the permission of the
individual. Overall, internet advertising is relatively inexpensive, but it
takes an impressive banner ad/website layout/email to attract the
attention of the consumer.

Types of Media - 7
Specialty Advertising
Also known as premium and
incentive marketing. Place
brand identification on
promotional tools (pens, key
chains, matchbooks, watches,
desk accessories, etc.). Prices
range from relatively
inexpensive to very expensive. It
takes some time to make the
products, limited reach, not
really used for public
advertising.

Break...2

To do:
1. Compete Study Notes section on
types of media
2. Take one of the logos you created
in a previous project and put it
on a baseball cap and a water
bottle (Use MS Publisher).
- See graphics on next slide.

If these are not to your liking
use Google Images to find
more suitable ones

Sales Promotion
Sales promotion consists of
non-personal activities used to increase sales over time.

Done to:
- Build traffic in a store
- Create extra interest in a product
- Motivate staff
- Introduce a new product and generate brand trial
- Clear out discontinued/end-of-season stock

Couponing
 Gives customers refund on product purchased.
 Placed in promotional media
 Canadian marketers distributed 2.67 billion coupons with an

average value of $1.25 in 2001
 About 5% of coupons are redeemed
 A woman in Vancouver saved $23,000 in coupons one year
 TV show created – extreme couponing
 Value-centric shoppers saved $3.7 Billion in 2010 using

coupons
 Last year set a record for coupon use in the US., 3.3 billion
coupons used
 Advantage: People value saving money.
 Disadvantage: A lot of costs, it takes effort for customers.

Virtual Couponing: iButterfly

 Augmented Reality App, allows consumers to ‘catch’ coupons

Sampling
 When a company gives
away quantity of product

to prospective customers.
 Advantage: encouraging

brand trial
 Disadvantage: very
expensive.

Contests and Sweepstakes
 Award a prize to selected
participants.
 Contests – skill required
 Sweepstakes – random draw
 Advantage: consumers get interactive
 Disadvantage: many customers assume

they will not win, sales may drop over time.
 Example of Contest: Roll up the Rim to Win

Bonus Packs
 Package offers increased quantity for price of
smaller package.
 E.g. buy one – get one free (soap sold in multi-packs)

 Advantage: Customers get more for their money
 Disadvantage: Costly

Premium Packs
 Products that include a free
item (Nintendo + free store
gift card)
 Advantage: Customers get more for

their money
 Disadvantage: Costly

Rebates
 Money provided back to consumer when sent in
 Advantage: Increases demand
 Disadvantage: Easily copied

Cross Promotions
 Two or more companies team
up to offer a special deal.
 E.g. Festive Special - Swiss Chalet,

Lindor, IndigoKids


In Lindor Chocolate Box you also
receive:
 IndigoKids - $5 promotional Gift Card
 Swiss Chalet Coupon –BOGO Coupon

 Advantage: More incentive for

customers
 Disadvantage: Must be sure target
markets are similar

Bonus Programs (Loyalty Cards)
 Encourages repeat purchases
 Advantage: Helps create loyalty
 Disadvantage: High cost for customer

Sales Promotion - Disney
 “Give a Day, Get a Disney Day”
 Walt Disney – Won Best Promotion of

2010 Pro Award

 First 1 million people who donated a

day of their time to charity received a
free-one day ticket to either
Disneyworld or Disneyland.
 Guests were given the option to donate
their ticket to a charitable organization.
 Results: 67 days to reach goal of
inspiring 1 million people to sign up
and commit to a volunteer activity

Product Placement
 Product placement is based on the concept of

Product Integration
 Products embedded within TV shows in a natural way

 Product Placement – Let’s learn more...
 Example A
 Example B

Product Placement Summary
 Product Placements:
 Try to link emotions that are tied up with character to the
brands.
 By late 2004, embedded advertising emerged as one of the
fastest growing segments of the ad market
 Prediction: Next year, more than 75% of TV network shows
will feature product placements
 2005 - NOW: 6.6 billion US dollars of commercials were
being fast forwarded through (social media/PVRs on the
rise)
 The key is keeping the placements believable and seamless

To do:
1. Compete Study Notes on types on
Sales Promotion.
2. Take the scene on the last slide and
insert a baseball cap or water bottle
in a subtle way. (your logo must be
on the item -- use MS Publisher)
3. Create a bitstrips comic that
advertises one of the products you
developed in a previous
assignment.

Slide 43

Slide 45

Slide 50

Slide 51

Cannes International Advertising
Festival: 2010 Lion Winners

Scene from “Tower Heist”