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ADVERTISING & SALES

PROMOTION

PGDM II year DSBS 2013-15

Only the brave or ignorant can say


exactly what advertising does in the
market place

Is your Advertising getting results? It sure


is! Last week we advertised for a nightwatchman and the next night we were
robbed

Session-I

Introduction to
Advertising

Marketing Defined
Marketing is a societal process, by which individuals and

groups obtain what they need and want through creating,


offering, and freely exchanging products and services of value
with others.

Marketing Mix
Product

Price
Promotion
Place

Promotional Mix
Sales promotion

Advertising
Sales force
Public relations, Publicity
Direct mail, Telemarketing and Internet

Promotion
The coordination of all seller-initiated efforts to set up

channels of information and persuasion in order to sell goods


and services or promote an idea.

Elements of Promotional Mix


Advertising

Interactive /
Internet
Marketing

Direct
Marketing

Promotional
Mix

Personal
Selling

Sales
Promotion

Publicity /
PR

Concept and Definition of Advertisement

Advertising
Advertising is any paid form of non personal presentation and

promotion of ideas, goods, or services by an identified


sponsor.
52 possible ad objectives (Russell Colley)
Major objectives are: Inform, Persuade or Remind
Art of telling and selling
Can be given at three periods
Before need arises
By the time of the need
After the need arises

Paid Aspect

The space or time for an advertising message generally must

be bought. In case of Public Service Announcements (PSA)


whose advertising space or time is donated by the media.

Non Personal Aspect


Non personal component means that advertising involves

mass media. (e.g. TV, radio, magazines, newspapers) that can


transmit a message to large groups of individuals, often at the
same time.

Introduction to Advertisement
The activity of attracting public attention to a product or

business, as by paid announcements in the print,


broadcast, or electronic media.
Paid form of a non personal message communicated
through the various media by industry, business firms,
nonprofit organizations, or individuals. Advertising is
persuasive and informational and is designed to influence
the purchasing behavior and/or thought patterns of the
audience. Advertising is a marketing tool and may be
used in combination with other marketing tools, such as
sales promotions, personal selling tactics, or publicity.

What is Advertising?
Three criteria must be met for a communication to be

classified as advertising:
The communication must be paid for.
The communication must be delivered through mass media.
The communication must be

attempting to persuade.

5 Ms of Advertising
Mission

Money
Message
Media
Measurement

Advertising characteristics
Paid form

About ideas, goods or services


Maximum control over the message
Inform and persuade
Has its selected market
Less credible
Subjective
Product brand related message
Non personal communication
By an identified sponsor

Forms of Advertisements
Advocacy
Comparative
Cooperative
Direct-mail
Informational

Institutional
Outdoor
Persuasive
Product
Reminder
Point-of-purchase
Specialty advertising.

Classification of Advertising
For whom (target audience- Industrial, Consumer)

Geographic coverage (local, regional, national, international)


Media used (print, electronic, direct mail, outdoor)
Aim(financial, demand, social messages, direct action)

Audience Geography
Global
International
National
Regional
Local

Audiences for Advertising


Household Consumers

Business Organizations
The Trade Channel
Professionals
Government

Functions of advertising
Informs the buyers

Offers an incentive
Reminds the benefits
Stimulates to try the product once
Builds brand
Reduces selling costs
Persuades people

Session II
Social, Ethical & Legal
Aspects

Social Implications of Advertising

Social aspects of advertising


Consumerism

Consumer culture
Consumer awareness

Consumerism
Ability and capability of consumers to purchase various goods

& services
After industrial revolution (preference to consumers)
Advancement in areas of education and research, technology
in all fields have been continuously upgraded
It resulted in increased production, increased employment
opportunities, generation of income, distribution and friendly
consumption.

Consumer culture
Improves the culture of the consumers

The growth of consumer culture diverted the purchasing

power of middle class people towards the purchase of


products like TV, refrigerator, air cooler, cellular phone, etc

Consumer awareness
There are more than 20 legislative enactments in India to

protect the rights of the consumers


The ad should help to protect the rights of the consumers
Education and media played a significant role to create
awareness among consumers

Economic Implications of Advertising

Role of advertising in Economy


All that ad has to do is to sell a product or service

Ads do the sales job better


Performs economic function by being an art of persuasion
Ads create wide markets

Effects of Advertising
Effects of advertising on costs
Effects of advertising on total marketing costs
Effects of advertising on total manufacturing costs
Effects of advertising on price
Prevents price competition for a longer period

Effects of advertising on quality


Stimulates product improvement
Effects of advertising on investment and the level of national

income

Ethical & Legal Implications of Advertising

Code of Advertising Ethics in India


Advertising shall be designed as to confirm to the laws of the

country and should not offend against morality, decency and


religious susceptibilities of the people.

General rules of conduct in advertising


Derides any race, caste, color, creed and nationality;
Is against any of the directive principles, or any other provision

of the Constitution of India;


Tends to incite people to crime, cause disorder or violence, or
breach of law or glorifies violence or obscenity in any way;
Presents criminality as desirable;
Adversely affects friendly relations with foreign States;
Exploits the national emblem, or any part of the constitution
or the person or personality of a national leader or State
Dignitary;
Relates to or promotes cigarettes and tobacco products, liquor,
wines and other intoxicants;

General rules of conduct in advertising


No advertisements message shall in any way be

presented as News.
Advertisements for services concerned with the
following shall not be accepted: Money lenders;
Chit funds;
Saving schemes and lotteries other than those conducted by

Central and State Government organisations, nationalised or


recognized banks and public sector undertakings;
Matrimonial agencies;

General rules of conduct in advertising


Unlicensed employment services;

Fortune tellers or sooth-Sayers etc. and those

with claims of hypnotism;


Foreign goods and foreign banks.
Betting tips and guide books etc. relating to
horse-racing or the other games of chance.

General rules of conduct in advertising


No advertisement shall contain references which are likely to

lead the public to infer that the product advertised or any


advertised or any of its ingredients has some special or
miraculous or super-natural property or quality, which is
difficult of being proved, e.g. cure for baldness, skin whitener,
etc.
Advertisements shall not contain disparaging of derogatory
references to another product or service.
Testimonials must be genuine and used in a manner not to
mislead the listeners. Advertisers or Advertising Agencies must
be prepared to produce evidence in support of their claims.

General rules of conduct in advertising


No advertisement of any kind of jewellery (except artificial

jewellery) or precious stones shall be accepted.


Information to consumers on matters of weight, quality or
prices of products where given shall be accurate.
Advertisements indicating price comparisons or reductions
must comply with relevant laws.
Advertisements for products specifically offered to women
shall not be advertised as products that are effective in
inducing miscarriage.
Advertisements relating to claims about curing of sexual
weakness, premature ageing, loss of virility, sexual excesses
etc. shall not be accepted.

General rules of conduct in advertising


There should be no exaggerated claims regarding the composition, character,

action and suitability of the purpose for which it is recommended.


When words such as college, clinic, institute and laboratory are used in
advertisements, such references can be made only when the said
establishment does actually exist.
The portrayal of the female form shall be aesthetic and within the well
established norms of good taste and decency.
Women must not be portrayed in derogatory light and in a manner that
emphasizes passive, submissive qualities and encourages them to play a
subordinate and secondary role in family and in society.
Scientific or statistical excerpts from technical literature etc. may be used
only with a proper sense of responsibility to the ordinary viewer.

Rules and acts framed to maintain


standards in advertising
Drugs and Cosmetics Act, 1940.
Drugs Control Act, 1950.
Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954.
Copyright Act, 1957.
Trade and Merchandise Marks Act, 1958.
Prevention of Food Adulteration Act, 1954.
Pharmacy Act, 1948.
Prize Competition Act, 1955.
Emblems and Names (Prevention of Improper Use) Act, 1950.
Consumer Protection Act, 1986.
Indecent Representation of women (Prohibition) Act, 1986.
AIR / Doordarshan Code.
Code of Ethics for advertisement in India issued by the Advertising Council of India
Code of standards in relation to the advertising of medicines and treatments
Standards of practice for Advertising Agencies

Ethics in advertising
Advertising should be in conformity with the laws of land
Advertisements should not be done against the cultural, religious and

aesthetic values of the people


It should not propagate hatred and defame the peace of the nation
It should not aim to exploit the illiteracy and superstition of the people to
gain benefits
Advertisements should disseminate factual information
Advertisement should not hide or divert facts (They can inform the
ingredients of the product and the need for using the product)
Misleading statements (visual or verbal) should be avoided
Price, quality, procedure to procure, guarantee and warranty etc. should be
communicated with utmost care and prudence (cautiousness)

Ethics in advertising
Comparisons which unfairly disparage (criticize) a competitive

product for service should be avoided


No advertisement should encourage or instigate the people to
practice illegal practices
Patent marks of other reputed concerns should not be used to
cheat the consumers
Obscene words / scenes in advertisements should be avoided
Without real intention, it should not be announced that
money will be returned if the purchaser is not satisfied with
the products

Ethics in advertising
Apart from state advertisements, national symbols

and the photographs of national leaders should not


be used without getting prior permission from the
competent authorities concerned
No advertising should canvass for pawn broking,
deposits for unregistered financial firms and
employment bureaus, bogus marriage brokerage,
astrology and magical skills.

Legal issues of advertising


Article 19 (1) all citizens shall have the right to freedom of

speech & expression.


Article 19(1) a - restricts & prohibits the ads for drugs
Article 19(2) right to information and expression can be
resticted on the following grounds

Legal issues of advertising


Security of the state

Friendly relations with foreign states


Public order
Decency of morality
Contempt of court
Defamation
Incitement (encouragement) of an offence
Sovereignty and integrity of India

Legal issues of advertising


Obvious untruths and exaggeration

Advertisements

should not depict children leaning


dangerously outside windows, over bridges or climbing
dangerous hills.
Advertisement should not show children using or playing with
matches or any inflammable or explosive substance
Viz. playing with knives, guns & electrical appliances
Advertisements shall not propagate products the use of which
is banned under law
Comparisons should be factual and accurate.

Session III
Advertising Agency

Advertising Agency
Advertising agency is defined as an organisation whose

business consists in acquisition as a principal of the right to use


space or time in advertising media and the administration on
behalf of the advertisers, of advertising appropriations made
by them.

Tasks of an advertising agency


Copy writing

Art pictures & photographs


Media planning & buying of space
Radio & television producing commercial spots

The work of market research


Production film or tape for use
Public relations

Forwarding the advertising materials to the media

owners and the clients in time

Agency should require


Sales ability

Creative ability
Management ability

Types of Advertising Agencies


Full Service Agencies

Creative Boutique
Interactive Agency
In-House Agency
Media-Buying Agency

Direct Marketing Agency


E-Commerce Agencies
Sales Promotion Agencies
Event-Planning Agencies
Design Firms
Public Relations Firms

Full-service advertising agency


A full service agency typically includes an array of advertising

professionals to meet all the promotional needs of clients.


Full service agencies are not necessarily large organisations
employing hundreds or even thousands of people.

Advantages of using a full service ad agency


In-depth knowledge and skills

Obtaining negotiating muscle with the media


Coordinating advertising and marketing efforts
Use services only when they are needed
Availability of high-caliber creative talent
Potential cost efficiencies

Disadvantages of using a full service ad


agency
Some control is lost
Larger clients are favored over small clients
Occasionally inefficient in media buying
Specialists approach client problems in a stereotyped fashion

Lack of cost accountability


Financial instability of smaller boutiques

Steps in selecting an advertising agency


The size of the agency.

The relevant experience of the agency.


Conflicts of interest.
Creative reputation and capabilities.

Production capabilities.
Media purchasing capabilities.
Other services available.

Client retention rates.


Personal chemistry

Steps in selecting an advertising agency


Identify and prioritize corporate goals.

Develop agency selection process and criteria.


Initially screen firms based on credentials, size, capabilities,

relevant experience and conflict of interests.


Request client references.
Do background check with other firms and media agents.
Request written and oral presentation.
Meet creatives, media buyers, account executives and other
personnel that will work with account.

Capabilities of an ad agency
Marketing & media planning

Research & analysis


Advertising campaigns local, regional & national
Creative concept / copywriting
Logo / corporate identity development
Graphic design & production
Direct marketing programs
Media placement
Public relations / special event planning

Ad agency Remuneration
Three methods used to compensate ad agencies
Commission
Negotiated fee
Percentage charges

Compensation of Ad Agencies
Initially agencies just sold space for the media and made

money
Marketed space for the press and the magazines
Paid on the basis of amount of space they sold by the media

Media Commissions
Media commission is an amount paid by the media to an

agency which has bought space or time for its clients


Generally 15% on the space sold by an agency

Reasons for losing clients


The clients dissatisfaction with the agencys performance

with regard to advertising quality or service


Poor communication between the client and the agency
personnel hinders a good working relationship
Personality clashes between client and agency personnel
Unrealistic client demands, which reduce the accounts
profitability for the agency

Reasons for losing clients


New managers in clients organisation may want to use an

agency with which they already have established ties.


Often when agencies merge, there is a conflict of interest as
two close competitors may be on the merged agencys
account list.
Changes in the clients marketing strategy may lead to change
of agency.
When the companys sales decline, the advertising agency is
viewed as unsuitable and the agency changed

Reasons for losing clients


The client may insist upon adopting a compensation method

to which the agency disagrees


When some companies or agencies outgrow in size, either may
think the other unsuitable and sever the ties

Session IV
Advertisement Media

What media to use?


Media Planning and Types
What channel will be most effective to reach target market(s)
Depends heavily on promotional objectives
What is it the company wants to convey? Action of the product

itself? Credibility of company or service? Brand name?

Major Types of Advertising Media


Newspapers
Magazines
Radio
Television
Outdoor Media
Internet

Alternative Media

Considerations for selecting Media


The media mix decisions
Cost per contact
Reach
Frequency
Target audience characteristics
Mediums flexibility
Noise level
Life span of medium

Session V
Communication Process:
Source, Message & Channel
factors

The Communications Process

Attractive sources are appropriate for image-related


products

There are many forms of encoding


Encoding

Verbal

Spoken
Word

Graphic

Pictures

Musical

Animation

Arrangement

Action/
Motion

Instrumentation

Pace/ Speed

Drawings
Written
Word
Song Lyrics

Charts

Voices

Shape/
Form

The Semiotic (symbols & signs) Perspective


Three Components to every marketing message
Object
Brand such as
Marlboro

Interpretant/
intended meaning
(masculine,rugged
individualistic)

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Sign or symbol
representing intended
meaning (Cowboy)

What is the symbolic meaning of the Snuggle bear?

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Images Encoded in Pictures Convey Emotions Very


Powerfully

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Forms of Personal Communication


Vocabulary

Verbal

Grammar
Inflection
Inflection
(modulation)

Gesture

Nonverbal

Facial
Expression
Body Language

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Communications Channels
Personal Selling

Personal Channels
Word of Mouth

Print
Media

Nonpersonal
Channels
Broadcast
Media

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Experiential Overlap
Different Worlds

Receiver
Experience

Sender
Experience
Moderate Commonality

Sender
Experience

Receiver
Experience

High Commonality

Receiver
Sender
Experience
Experience
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Receiver
Experience

Levels of Audience Aggregation


Mass Markets

Market Segments

Niche Markets

Small Groups

Individuals

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Models of the Response Process

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Advertising Creates Awareness for a New Product

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Models of Obtaining Feedback


Effectiveness Test

Persuasion Process

Circulation Reach

Exposure, Presentation

Listener, Reader,
Viewer Recognition

Attention

Recall, Checklists

Comprehension

Brand Attitudes,
Purchase Intent

Message Acceptance/
Yielding

Recall Over Time

Retention

Inventory, POP
Consumer Panel

Purchase Behavior

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Alternative Response Hierarchies


Topical Involvement
High

Cognitive
Affective
Conative
Dissonance/
Attribution Model

Low

Perceived product
differentiation

High

Learning Model

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Conative
Affective
Cognitive

Low
Low Involvement
Model

Cognitive

Conative

Affective

Clever Ads Encourage Low


Involvement Learning

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Computers are high-involvement,


highly differentiated products

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Cognitive Response
A method for examining consumers cognitive
processing of advertising messages by looking at
their cognitive responses to hearing, viewing, or
reading communications.
Examines types of thoughts that are evoked by an
advertising message.
Consumers write down or verbally report their
reactions to a message.
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A Model of Cognitive Response

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Cognitive Response Categories


Product/Message Thoughts

Counter Arguments

Support Arguments

Source - Oriented Thoughts


Source Derogation

Source Bolstering

Ad Execution Thoughts
Thoughts About
the Ad Itself
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Affect Attitude
Toward the Ad

Elaboration Likelihood Model


Focuses on the way consumers respond to persuasive
messages based on the amount and nature of elaboration
or processing of information
Routes to attitude change

Central route to
persuasion ability
and motivation to
process a message is
high and close
attention is paid to
message content

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Peripheral route to
persuasion ability
and motivation to
process a message is
low and receiver
focuses more on
peripheral cues rather
than message content

Celebrity Endorsers Can Be Peripheral Cues

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How Advertising Works


Advertising Input
Message content, media
scheduling, repetition

Filters
Motivation, ability,
(involvement)

Consumer
Cognition, Affect, Experience

Consumer Behavior
Choice, consumption,
loyalty, habit, etc.
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Session VI Case Study


Dove: Campaigning for Real Beauty

Session VII
Establishing Objectives and Budgeting
Promotional Programs

Value of Objectives

Objectives

Focus &
Coordination

Plans &
Decisions
Measurement
& Control

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Characteristics of Objectives

Attainable

Realistic

Measurable
Objectives

Not Mutually
Exclusive

Specific

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Advertising Can Shape Corporate Images

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Marketing Versus Communications Objectives


Marketing Objectives

Communications
Objectives

Generally stated in the


firms marketing plan
Achieved through the
overall marketing plan
Quantifiable, such as
sales, market share, ROI
To be accomplished in a
given period of time
Must be realistic and
attainable to be effective

Derived from the overall


marketing plan
More narrow than
marketing objectives
Based on particular
communications tasks
Designed to deliver
appropriate messages
Focused on a specific
target audience

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Vs.

Many Different Factors Affect Sales

$ALE$

Promotion

Distribution

Competition

Technology

Product
Quality

Price Policy

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The
Economy

Sales As Advertising Objectives

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Direct Response Ads Seek Sales

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Many Ads Seek Communications Objectives

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Advertising and Movement Toward Action

Conative
Realm of motives.
Ads stimulate or direct
desires.

Affective
Realm of emotions.
Ads change attitudes and
feelings

Purchase
Conviction
Preference

Competitive ads
Argumentative copy

Liking

Image copy
Status, glamour appeals

Knowledge

Announcements
Descriptive copy
Classified ads
Slogans, jingles, skywriting

Awareness

Teaser campaigns

Cognitive
Realm of thoughts.
Ads provide information
and facts.
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Point of purchase
Retail store ads, Deals
Last-chance offers
Price appeals, Testimonials

Image Ads Can Have a Strong


Effect on Preference

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The DAGMAR Approach

Define
Advertising
Goals for
Measuring
Advertising
Results
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DAGMAR Difficulties
Legitimate Problems

Attitude - Behavior
Relationship

Response Hierarchy
Problems

Questionable Objections

Sales Objectives
Needed

Costly and Impractical

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Inhibits Creativity

Advertising-Based View of Communications


Advertising Through Media

Acting on Consumers
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Balancing Objectives and Budgets

What were
willing and able
to spend

Dollars

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What we need to
achieve our
objectives

Goals

Marginal Analysis

Gross Margin

Sales in $

Sales

Ad. Expenditure

Profit
Point A

Advertising / Promotion in $
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BASIC Principle of Marginal Analysis

Increase Spending

If the increased cost is less than the


incremental (marginal) return

Hold
Spending

If the increased cost is equal to the


incremental (marginal) return.

Decrease Spending

If the increased cost is more than the


incremental (marginal) return

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Assumptions for Marginal Analysis


Sales are the result of
advertising and
promotion, and
nothing else

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Sales are the


principal objective
of advertising and
promotion

Advertising Sales/Response Functions

Advertising Expenditures
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Initial Spending
Little Effect

Middle Level
High Effect

High Spending
Little Effect

B. S-Shaped
Response
Function

Incremental Sales

Incremental Sales

A. ConcaveDownward
Response Curve

Range A

Range B

Range C

Advertising Expenditures

Top-Down Budgeting

Top Management Sets the Spending Limit

The Promotion Budget Is Set to Stay Within the Spending


Limit

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Top-Down Budgeting Methods


Competitive
Parity

Arbitrary
Allocation

Percentage
of Sales

Top
Management

Return on
Investment

Affordable
Method

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Bottom-Up Budgeting
Total Budget Is Approved by
Top Management

Cost of Activities are Budgeted

Activities to Achieve Objectives


Are Planned

Promotional Objectives Are Set

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Objective and Task Method

Establish Objectives
(create awareness of new product among 20 percent
of target market)

Determine Specific Tasks


(advertise on market area television and radio and
local newspapers)

Estimate Costs Associated with Tasks


(determine costs of advertising, promotions, etc)

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Are There Economies of Scale?


Proposition I
Larger firms can support their brands with lower relative
advertising costs than smaller firms.
No evidence to support this!

Proposition II
The leading brand in a product group enjoys lower advertising costs per sales
dollar than do other brands.
No evidence to support this!

Proposition III
There is a static relationship between advertising costs per dollar of sales and
the size of the advertiser.
No evidence to support this!
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Low

Competitors
Share of Voice

High

Ad Spending and Share of Voice

Decreasefind a
Defensible Niche

Increase to Defend

Attack With Large SOV


Premium

Maintain Modest
Spending Premium

Low

High
Your Share of Market

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Session VIII
Creative Strategy : Planning & Development

Advertising Creativity

Creative
Strategy

Determining what the advertising


message will say or communicate

Creative
Tactics

Determining how the message


strategy will be executed

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The Ideal Power Idea Should . . .


Be Describable in a Simple Word or Phrase

Be Likely to Attract the Prospects Attention

Revolve Around the Clinching Benefit

Allow You to Brand the Advertising

Let Prospects Vividly Experience the Goods


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Two Perspectives on Advertising Creativity

The ability to generate fresh, unique and appropriate ideas


that can be used as solutions to communication problems.

Its not
creative
unless it sells

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Suits

Artists

Only artistic
value and
originality
count

Young's Creative Process


Immersion

Getting Raw Material, Data, Immersing One's


Self in the Problem to Get the Background.

Digestion

Ruminating on the Data Acquired, Turning It


This Way and That in the Mind.

Incubation

Ceasing Analysis and Putting the Problem Out


of Conscious Mind for
a Time.

Illumination

A Sudden Inspiration or Intuitive Revelation


About a Potential Solution.

Verification

Studying the Idea, Evaluating It, and Developing


It for Practical Usefulness.

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Wallas View of the Creative Process


Illumination
Seeing the
Solution

Preparation
Preparation
Gathering
Gathering
Information
Information

The
Creative
Process
Verification
Verification
Refining
Refining
the Idea

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Incubation
Incubation
Setting
Setting
Problem
Problem
Aside
Aside

Getting Creative Input

Read anything related


to the product or
market!

Use the product to


become familiar with
it!

Work in and learn


about the clients
business!

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Listen to what people


are talking about!

Ask everyone involved


for information!

Verification and Revision of Ideas


Evaluate Ideas Generated
Reject Inappropriate Ideas
Objective
Refine Remaining Ideas
Give Them Final Expression

Directed Focus Groups


Message Communication Studies
Techniques
Portfolio Tests
Viewer Reaction Profiles
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The 10 greatest ad slogans of all time


Company or Brand

Campaign Theme

1. De Beers

Diamonds are forever

2. Nike

Just do it!

3. Coca Cola

The pause that refreshes

4. Miller Lite

Tastes great, less filling

5. Avis

We try harder

6. Maxwell House

Good to the last drop

7. Wheaties

Breakfast of champions

8. Clairol

Does she . . . or doesnt she?

9. Morton Salt

When it rains it pours

10. Wendys

Wheres the beef?

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

BMWs Slogan Has Helped Build Its Brand Image

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

An Advertising Campaign
Integrated
Integrated

Interrelated
Interrelated

Coordinated
Coordinated
Marketing
Communication Activities

Centered on a Theme or
Idea
InIn
Different
Different
Media
Media
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Over a Time Period

Advertising Campaign Themes


The central message that will be communicated
in all of the various IMC activities

Miller
Lite

Miller
Lite

At a place called
Miller time

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

BMW

BMW

The Ultimate Driving


Machine

Chevy
Trucks

Like a Rock

Successful Long-Running Campaigns


Company or Brand

Campaign Theme

Nike

Just do it

Allstate Insurance

Youre in good hands with Allstate

Hallmark cards

When you care enough to send


the very best

Budweiser

This Buds for you

Intel

Intel inside

State Farm Insurance

Like a good neighbor,


State Farm is there

Chevy Trucks

Like a rock

Dial soap

Arent you glad you use Dial?

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

This ad is part of a new advertising campaign theme for


Miller Lite beer

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Building a Copy Platform Outline


6. Supporting Information and Requirements

5. Creative Strategy Statement

4. Selling Idea or Key Benefits to Communicate

3. Specify Target Audience

2. Advertising and Communications Objectives

1. Basic Problem Advertising Must Address


2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Major Selling Ideas


Use a Unique
Positioning the Brand
Selling Position

Use a Unique
Create a Brand Image
Selling Position

Seeking the Major Idea

Positioning

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Create
Find
thethe
Inherent
Brand Image
Drama

Approaches to the Major Selling Idea: USP


Unique Selling Proposition

Benefit

Buy this
produce and
you'll benefit
this way or
enjoy this
reward
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Unique

Must be unique
to this brand or
claim; something
rivals can't or
don't offer

Potent

The promise
must be strong
enough or
attractive
enough to move
people

Perspectives of Great Ad Men on the Major Selling


Idea
David Ogilvy

Leo Burnett

Brand image or personality is


particularly important when
brands are similar

Find the inherent drama or


characteristic of the product that
makes consumers buy it

Every ad must contribute


to the complex symbol
that is the brand image.

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

(Inherent drama) is often


hard to find but it is always
there, and once found it is
the most interesting and
believable of all
advertising appeals.

Creating a Brand Image


Used when competing brands are so similar it is
difficult to find or create a unique attribute

The creativity sales strategy is based on a strong,


memorable brand identity through image advertising

Often used for products such as soft drinks, perfume,


liquor, clothing, airlines

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Approaches to the Major Selling Idea:


Inherent Drama

Inherent Drama

Messages generally presented in a warm,


emotional way Hallmark, Maytag, Kellog

Focus on consumer benefits with an emphasis


on the dramatic element in expressing them

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Approaches to the Major Selling Idea:


Positioning

Positioning

Establish a particular place in the customers


mind for the product or service

Based on product attributes/ benefits,


price/quality, use or application, type of user,
problem solved

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

This Ad Positions 3M as Highly Innovative

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Session IX
Creative Strategy:
Implementation and Evaluation

Appeals and Execution Style

Advertising
Appeals

Execution
Style

The approach used to attract the


attention of consumers
To influence consumer feelings toward
a product,
service or cause

The way an appeal is turned into an


advertising message

The way the message is presented to


the consumer

Types of Rational Appeals


Feature: Focus on dominant traits of the product

Competitive: Makes comparisons to other brands

Price: Makes price offer the dominant point

News: News announcement about the product

Popularity: Stresses the brands popularity


2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

A Rational, Popularity Appeal

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Appealing to Personal States or Feelings


Achievement
Actualization
Ambition
Stimulation
Excitement
Grief
Joy
Nostalgia
Pride
Security
Sentiment
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Accomplishment
Affection
Arousal
Comfort
Fear
Happiness
Love
Pleasure
Safety
Self-esteem
Sorrow

Appealing to Socially Based Feelings


Approval

Affiliation

Acceptance

Embarrass-ment

Social-Based
Feelings

Status

Belonging

Respect

Involvement
Rejection

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Recognition

Transformational Ads
Feelings

Images

The ads
create . . .
Beliefs

Meanings

Richer

More
Exciting

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

It must make the


product use
experience . . .

Warmer

More
Enjoyable

Norwegian Uses Transformational Advertising

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Norwegian Uses Transformational Advertising

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Levels of Relationship with Brands

Emotions

Personality
Product Benefits

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

MasterCard Creates an Emotional Bond

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Ad Execution Techniques
Straight-sell

Slice of life

Scientific

Testimonial

Demonstration

Animation

Comparison

Personality Symbol

Dramatization

Fantasy

Humor
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Apple Uses a Testimonial

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Crest Whitestrips Uses a Demonstration

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Print Ad Components
Headline:
Words in the Leading Position of the Ad
Subheads:
Smaller Than the Headline, Larger Than the Copy
Body Copy:
The Main Text Portion of a Print Ad
Visual Elements:
Illustrations Such As Drawings or Photos
Layout:
How Elements Are Blended Into a Finished Ad
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Altoids Uses a Headline Effectively

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Headlines Can Capture Attention

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Print Ad Layout
Format

Arrangement of the Elements on the Printed Page

Size

Expressed in Columns, Column Inches or Portions


of a Page

Color

Black & White or Two-, Three-, or Four-color


Printing

White
Space

Marginal and Intermediate Space That Remains


Unprinted

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Top 10 Jingles of the Century


Company

Jingle

1. McDonalds

You deserve a break today

2. U.S. Army

Be all that you can be

3. Pepsi Cola

Pepsi Cola Hits the Spot

4. Campbells Soup

Mm, Good Mm Good

5. Chevrolet

See the USA in your Chevrolet

6. Oscar Mayer

I wish I was an Oscar Mayer Wiener

7. Wrigleys gum

Double your pleasure, double your fun

8. Winston

Winston tastes good like a cigarette should

9. Coca-Cola

Its the real thing

10. Brylcreem

BrylcreemA little dabll do ya

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Production Stages for TV Commercials

Preproduction

All work before actual shooting,


recording

Production

Period of filming, taping, or recording

Postproduction

Work after spot is filmed or recorded

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Preproduction Tasks
Select a Director

Preproduction
Meeting

Choose Production
Company

Preproduction
Production Timetable

Bidding

Cost Estimation and


Timing
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Production Tasks

Production

Location Versus Set


Shoots

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Night/weekend
Shoots

Talent
Arrangements

Postproduction Tasks
Editing

Processing

Release/
Shipping

Sound Effects

Postproduction
Audio/Video
Mixing

Duplicating

Client/agency
Approval
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Opticals

Evaluation Guidelines for Creative Output


Consistent With Brands Marketing Objectives?
Consistent With Brands Advertising Objectives?
Consistent With Creative Strategy, Objectives?
Does It Communicate What Its Suppose to?
Approach Appropriate to Target Audience?
Communicate Clear, Convincing Message?
Does Execution Overwhelm the Message?
Appropriate to the Media Environment?
Is the Advertisement Truthful and Tasteful?
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Session X

Media Planning
and Strategy

Media Terminology
Media
Planning

A series of decisions involving the delivery of messages


to audiences

Media
Objectives

Goals to be attained by the media strategy and


program

Media
Strategy

Decisions on how the media objectives can be attained

Media

The various categories of delivery systems, including


broadcast and print media

Broadcast
Media

Either radio or television network or local station


broadcasts

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media Terminology
Print
Media

Publications such as newspapers, magazines, direct


mail, outdoor, etc.

Media Vehicle

The specific carrier within a medium category

Reach

Number of different audience members exposed at


least once in a given time period

Coverage

The potential audience that might receive the message


through the vehicle

Frequency

The number of times the receiver is exposed to the


media vehicle in a specific time period

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Developing the Media Plan


Situation
Analysis

Marketing
Strategy Plan

Creative
Strategy Plan

Setting Media Objectives


Determining Media Strategy
Selecting Broad Media Classes
Selecting Media Within Class

Media Use Decision


Broadcast
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media Use Decision


Print

Media Use Decision


Other Media

Media Planning Difficulties


Measurement
Problems

Lack of Information

Problems
in Media
Planning

Time
Pressure
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Inconsistent
Terms

Developing the Media Plan


Analyze the Market
Establish Media Objectives
Develop Media Strategy
Implement Media Strategy
Evaluate Performance
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Brand and Category Analysis

Brand Development Index


Percentage of brand to total U.S. sales
in market
BDI =

Percentage of total U.S. population


in market

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

X 100

Brand and Category Analysis

Category Development Index


Percentage of total product category
sales in market
CDI =

Percentage of total U.S. population


in market

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

X 100

Brand and Category Analysis

Low CDI

High CDI

High BDI

Low BDI

High market share


Good market potential

Low market share Good


market potential

High market share


Monitor for sales decline

Low market share


Poor market potential

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Brand and Category Analysis

Low CDI

High CDI

High BDI

Low BDI

The market usually represents


good sales potential for both
the product and the brand.

The product category shows high


potential but the brand isnt
doing well; the reason should be
determined.

The category isnt selling well


but the brand is; may be a good
market in which to advertise but
should be monitored for sales
decline.

Both the product category and


the brand are doing poorly; not
likely to be a good place to
advertise.

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Target Audience Coverage


Population excluding target market
Target market
Media coverage
Media overexposure

Target
Market
Proportion

Full
Market
Coverage

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Partial
Market
Coverage

Coverage
Exceeding
Market

Three Scheduling Methods


Continuity

Flighting

Pulsing

Jan

Feb

Mar

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Reach and Frequency


A. Reach of One Program

Total market audience reached


C. Duplicated Reach of Both

Total reached with both shows


2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

B. Reach of Two Programs

Total market audience reached


D. Unduplicated Reach of Both

Total reach less duplicate

Graph of Effective Reach


Figure 10-22

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Marketing Factors Determining Frequency


Marketing
Factors

Brand Loyalty

Brand History

Brand Share

Share of Voice

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Usage Cycle

Purchase
Cycles

Target Group

Message Factors Determining Frequency


Message
or Creative
Factors

Message Complexity

Message Uniqueness
New Vs. Continuing Campaigns
Image Versus Product Sell
Message Variation
Wearout

Advertising Units
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media Factors Determining Frequency


Clutter

Scheduling

Repeat Exposures

Media Factors
Editorial
Environment

Attentiveness

Number of Media
Used
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Determining Relative Cost of Media-Print

Cost per thousand (CPM)

CPM =

Cost of ad space
(absolute cost)

Circulation

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

X 1,000

Determining Relative Cost of Media-Broadcast

Cost per rating point (CPRP)

CPRP =

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Cost of commercial time


Program rating

Television Pros and Cons


Advantages

Disadvantages

Mass Coverage

Low Selectivity

High Reach

Short Message Life

Impact of Sight, Sound


and Motion

High Absolute Cost

High Prestige

High Production Cost

Low Cost Per Exposure

Clutter

Attention Getting
Favorable Image
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Radio Pros and Cons


Advantages

Disadvantages

Local Coverage

Audio Only

Low Cost

Clutter

High Frequency

Low Attention Getting

Flexible

Fleeting Message

Low Production Cost


Well-segmented Audience

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Magazine Pros and Cons


Advantages

Disadvantages

Segmentation Potential

Long Lead Time for


Ad Placement

Quality Reproduction

Visual Only

High Information Content

Lack of Flexibility

Longevity
Multiple Readers

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Newspaper Pros and Cons


Advantages

Disadvantages

High Coverage

Short Life

Low Cost

Clutter

Short Lead Time for Placing Ads

Low Attention Getting

Ads Can Be Placed in Interest


Sections

Poor Reproduction Quality

Timely (Current Ads)

Selective Reader Exposure

Reader Controls Exposure


Can Be Used for Coupons
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Outdoor Pros and Cons


Advantages

Disadvantages

Location Specific

Sort Exposure Time

High Repetition

Short Ads

Easily Noticed

Poor Image
Local Restrictions

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Direct Mail Pros and Cons


Advantages

Disadvantages

High Selectivity

High Cost Per Contact

Reader Controls Exposure

Poor Image (Junk Mail)

High Information Content

Clutter

Repeat Exposure Opportunities

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Internet Pros and Cons


Advantages

Disadvantages

User Selects Product Information

Limited Creative Capabilities

User Attention and Involvement

Websnarl (Crowded Access)

Interactive Relationship

Technology Limitations

Direct Selling Potential

Few Valid Measurement


Techniques

Flexible Message Platform

Limited Reach

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Session XI
Evaluation of Print media / Support
Media

Classifications of Magazines
By
Content
Audience

By
Geography

By
Size

Consumer
Magazines

Local

Large

Regional

Flat

National

Standard

Farm
Magazines

Business
Magazines

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Small or
Pocket

An Example of a Farm Publication

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advantages and Disadvantages of Magazines


Advantages

Disadvantages

Selectivity

Costs

Reproduction Quality

Limited Reach

Creative Flexibility

Limited Frequency

Permanence (Long life span)

Long Lead Time (Required to


Long Lead Time
place an ad)

Prestige

Clutter

Receptivity, Involvement
Services
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Magazine Circulation Concepts


Circulation: Number of individuals who receive a publication through either
subscription or store purchase.

Total Audience (the total


number of primary and
pass-along readers)

Primary
Circulation:
Primary
(Original subscribers or
Circulation
purchasers)

Guaranteed Circulation: A
rebate is given to advertisers is
Guaranteed
guaranteed
number is not met.
(Estimations
are made below
Circulation
the average)

Circulation Verification:

Controlled
Circulation
Pass-Along Readership: Giving
the magazine
by the primary
Pass-Along
subscriber or purchaser to an
Readership
other
person OR read
somewhere.
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Credibility of circulation
Circulation
figures. Auditing is done
through verification
Verification
services.

Purchasing Magazine Advertising Space


Cost elements include many variables such as:
-Magazine Rates (Primarily a function of circulation)

-Size if the ad
-Position in the publication
-The particular edition chosen: (e.g., geographical or Demographic)
- Any special mechanical or production requirement
-Number and frequency of insertions

-Magazine networks: Offer advertisers the opportunity to buy space in a group of


publications as a package deal

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Future of Magazines


Declining
Declining Ad
Ad Revenues
Revenues(affected by, e.g., spending and competition)
Stronger
Stronger Editorial
Editorial Platforms
Platforms (for different appeals)
Circulation Management
Management: Maintaining a circulation level as a major

Cross-Mag.&&Media
Cross-Mag.
Media
Deals
Deals
(Packages offered to advertisers)

Trends,
Trends,
Trends

Database
Marketing Database MKG for better segmen
Database Marketing:

Advances
in Technology:
Selective binding & InkAdvances
in Technology

Electronic Delivery Methods


2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Magazines Go Online

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Newspaper Classifications
Publication
Frequency

Daily
Weekly
National

Type

Special-Audience
Supplements

Standard
Size
Tabloid
Ethnic, Religious, Etc.
Audience Type
Business, Financial, Etc.
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Characteristics of Newspapers
The Dominant Advertising Vehicle
Account for 22% of Ad Dollars
Over 1,500 Daily Papers in Print
Dailys Read by About 60% of adults
Main Community Medium
Local Ads Provide Most of Revenue
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Unique Newspaper Features


Mass audience
Cross-section of population
Local geographic coverage
Wide range of content, subjects
Selective readership by area
Timely coverage, daily issues
Readership concentrated in time
Permanent, durable record
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Newspaper Advertising
Local (Mostly Retail)
Display Ads

General (Often National)


Paid Reading Notices (Editorial Look)
Small Items Arranged by Topic

Classified Ads

Rates Based on Size, Duration


Classified Display - Combination

Legal Notices - Public Reports


Public Notices

Notices by People, Organizations


Financial Reports

Printed Inserts
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Prepared Separately by Advertisers

Newspaper Advantages and Drawbacks


Advantages

Disadvantages

Extensive Penetration

Production Quality
May Be Low

Flexibility

They Have a
Short Life Span

Geographic Selectivity

Not Demographically Selective

Involvement, Acceptance

Not Psychographically Selective

Services Offered

There's Heavy Ad Competition

Potentially Poor Placement


May Be Overlapping Circulation
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Newspaper Characteristics
Read by Almost All Consumers

Wide Audience

Read Daily in an Ordered Way


Readers Look at Over 3/4
of All Pages

Few Limitations on Ad Size

Spot and Full Color Available


Many Shapes, Sizes,
Paper, & Printing
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Offer
Flexibility

The Future of Newspapers:


The future of newspapers depend on:
-Competition from other media
-Circulation
-Cross-media buying

-Attracting and Retaining Readers


-Editorials
-Technology

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Session XII
Advertising and Social Media

Session XIII
Amplifying Perceptions: How Jetblue
Uses Twitter To Drive Engagement
And Satisfaction

Session XIV
Direct Marketing, Internet & Interactive
Media

Direct Marketing Defined


The total of activities by which the seller directs efforts to a
target audience using one or more media for the purpose of
soliciting a response by phone, mail, or personal visit from a
prospective customer.
TV Selling

Catalog Selling
Telemarketing

Direct Selling

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Direct Mail

Direct Action Advertising

Growth of Direct Marketing


Consumer Credit Cards

Changing Structure of Society

Direct Marketing Syndicates (Companies are opening new opportunities


Direct
Marketing
Syndicates
for marketers
through (e.g.,
list development, Catalogs and Sweepstakes)

Technical Advances

Miscellaneous factors (e.g., Changing values, More sophisticated


marketing techniques and Improved image of the industries)
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Direct Marketing Combines With . . .


Public
Relations

Personal
Selling

Advertising

Direct
Marketing

Support
Media
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sales
Promotion

Objectives of Database Marketing


Improve Selection of Market
Segments

Stimulate Repeat Purchases

Objectives
Cross-selling Other Products

Customer Relationship
Management
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Developing a Database
List Services
Simmons Market
Research Bureau: (Research
on at home buying via Mail
or Telephone)

Standard Rate &


Data
ServiceRate
(Lists of
Standard
&

Consumers and Businesses.


Data
Service (SRDS)
Published in two volumes)

Sources
National Census
U.S. Census Bureau
Bureau

U.S.
Postal
Postal
Service
Service

Direct Marketing
Association
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Direct-Marketing Strategies and Media


One Step

Two Step

The medium is used


directly to obtain an
order

May use one medium


to obtain inquiry and
qualify prospect

Often use 800 number


phone orders and credit
card payment

Typically follow up
with a second medium
to complete the sale

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Direct Response Advertising Types


All forms of advertising designed to obtain
immediate, direct response by telephone, mail, or
personal visit from individual audience members.

e.g., Direct Mail Pieces and


Direct Mail Pieces and Inserts
Inserts Soliciting Inquiry
Soliciting Inquiry Recipients.
Recipients.

e.g., Coupon Booklets and


Card Decks, Coupon Booklets and
Vouchers; and Mini-catalogs
Mini-catalogs Seeking Orders for
Seeking Orders for One or More
One or More Products.
Products.

e.g.,and
TV
TVCATV
and CATV
Commercials
Commercials
and
Infomercials
and
Infomercials
Selling
Selling
Products
Products
by
Phone
by
Phone
or Mail
or Mail
Order.
Order.

e.g., Newspapers, Magazines and


Other Print Media Ads With
Send-in or Call-in Coupon Order
Forms.

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Types of Direct Mail


All forms of advertising sent directly to
prospects through the Postal Service or through
private services.
House organs

Inclusions
Inclusions (e.g., in newspapers)

Broadsides (e.g., on ships)


Broadsides

Postcards

Catalogs

Reprints

Flyers

Sales letters

Folders

Self-mailers

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Direct Mail Advantages


Control

Coverage

Selectivity

Exclusivity
Advantages

Response

Flexibility

Reach
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Impact

Direct Mail Disadvantages

Disadvantages

Clutter

Negative Image of Medium


Delays in Delivery
High Cost Per Exposure
List Quality Uncertainty
No Content Support

Saturation Among Audience


2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Pros & Cons of Catalogs


+ Pros
Provides Buyers With
Wide Selections
Usually Welcomed
by Shoppers
Design Offers High
Impact Potential
Merchandise Is
Centrally Inventoried
Fulfillment Facilities Closely
Controlled
Timing Can Be Geared
to Seasonal Needs
Split-run Testing
Can Insure Effectiveness
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

- Cons
Production Costs
Are Usually Very High
Saturation for
Some Markets Is Likely
Delivery or Fulfillment
May Be Delayed
Delivery or Fulfillment
May Be Delayed
Customer Cant Inspect
or Handle Goods

Outbound and Inbound Telemarketing


Outbound

Telephone calling by the


marketer or marketers
agent to individual
prospects, seeking
purchase, subscription,
membership, or
participation by the call
recipient.

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Inbound
Marketers facilities and
invitations to prospects to
call a central location or
long distance number or
by toll-free, 800 or fixed
cost 900 number.

Outbound Telemarketing
Advantages

Disadvantages

Interactive Contact

Intrusive Nature

Extensive Reach

Poor Image of Method

Caller-controlled Timing

High Cost of Contact

High Impact

Low Conversion Rate


Extensive Caller Training
Namelist
Name
listInadequacies
Inadequacies

High Termination Rates


High Reneges, Returns
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Inbound Telemarketing Pros & Cons


+ Pros

- Cons

Response Is Highly Convenient


for the Audience

Labor-intensive Call Answering


Facilities May Be Required

Method Permits Interactive


Selling and Service

Personnel Direction System May


Be Required for Efficiency

Transactions Are Facilitated by


High Rate of Credit Card Holding

Nonproductive Call Rates May Be


Exceedingly or Unacceptably
High

Immediacy of Method Permits


Great Control of Inventory
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Three Forms of Direct Selling

Repetitive
personto-person selling

Nonrepetitive
personto-person selling

Direct
Selling
Party
Plans
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Direct Response Advantages


Advertisers Acquire or Enhance a Data Base of Individual
Customers
Customers Are Served With a Greater Selection From a
Central Inventory
Response Options Enable Audience to Act Right After
Exposure Occurs
No Store Is Required and Customers Can Buy From Their
Own Homes
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Direct Response Disadvantages

Disadvantages

Customers Cant Handle or Inspect


the Product
Before Purchasing
Merchandise Returns and
Subscription Cancellations May Be
Numerous
Seller Reputation and Prestige May
Be Compromised by Methods Poor
Image

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Overall Direct Marketing Pros & Cons


Advantages

Disadvantages

Selective Reach

Image Factors

Segmentation Capability

Accuracy
(e.g., People move and
Accuracy
change jobs)

Frequency Potential

Content Support

Flexibility

Rising Costs

Timing
Personalization
Economy
Measurement of Effectiveness
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Session XV
The Internet and Interactive Media

Features of the Internet


Electronic mail (e-mail)

Usenet
Telnet
File transfer protocol (ftp)

Internet
Features

Hypertext transfer protocol (http)


Client server

Gopher
Wide Area Information Server (WAIS)
World Wide Web (WWW)
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Internet Participants
Senders

Internet

Advertisers

Sponsors
e-Commerce
Merchants

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Receivers
Users

Internet

Shoppers

Customers

Adoption Curve for the Web and Other Media

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Website
Where information is
made available by the
provider

Must Be:

Interesting
Current
Easy to navigate
Involving

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Cheerios Uses Its Package to Drive


Consumers to Its Web Site

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Huggies Homepage Appeals to Mothers

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Internet Communications Objectives


To Create Awareness

To Stimulate Trial

To Generate Interest

Objectives
To Create a Strong
Brand

To Disseminate
Information

To Create an Image

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Snapple Uses the Internet to Create Interest

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Xerox Uses the Web to Develop an Image

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Skyy Blue Redefines the Traditional Website

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Internet Sales Objectives- E-commerce

The Direct Selling of


Goods and Services
Through the Internet

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

May Be Primary
or Secondary Objective

E-Commerce on the Web


E-Commerce

Rapid Growth Rates Likely


to Continue

Fast Growth in
Downloadable
Purchases

Both Consumer and


Business-to-business

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

ebay Is a Well Known E-Commerce Site

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Integrating the Internet into an IMC Program


Advertising

Sales Promotions
The Internet site should
be integrated with:

Personal Selling

Public Relations

Direct Marketing
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Integrating the Internet--Advertising


Banners
Sponsorships

Internet Advertising
Has a Variety of Forms:

Pop-ups/
Pop-unders
Interstitials
Push Technologies

Links
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Typical Banner Ad

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Keebler Uses Sales Promotions on Their


Website

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Personal Selling on the Internet


May Replace Personal
Selling
Reduces High Cost of
Personal Calls

Vastly Increases
Potential Reach

May Enhance Personal Selling


Efforts
Provides Quick, Easy,
Information to
Prospects

May Help to Enhance


Customer Data Bases

May Improve One-onone Communications

May Be a Source of
Leads

May Stimulate Trial of


the Goods or Service

May Serve As a Sales


Conference Medium

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Public Relations on the Internet

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

iVillage has Numerous Sponsorship Partners

+
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Direct Marketing and the


Internet:Direct Mail

Often Used by Catalogers

Highly Targeted

Direct Mail
(Email)

Attempts to Reach Those


With Specific Needs

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Relies on
Email Lists

Infomercials on the World Wide Web

Infomercials

Program Content Similar to


Television, Cable or Satellite

Web Provides for Greater Audience


Interaction

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Measures of Effectiveness
Tracking

Surveys

Online Measuring

Panels

Sales
Recall and
Retention

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sources of Measurement Data


Arbitron

Data
Source

MRI and SMRB


Audit Bureau of Circulation
Internet Advertising Bureau (IAB)
eMarketer
Nielsen Net Ratings
Jupiter MediaMetrics, Inc.
Business 2.0 and Fast Company
Internet Advertising Report & office.com

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Internet Advantages and Disadvantages


Advantages

Disadvantages

Target Marketing

Measurement problems

Message Tailoring

Websnarl

Interactive Capabilities

Clutter

Information Access

Potential for deception

Sales Potential

Privacy

Creativity

Limited production quality

Exposure

Poor reach

Speed

Irritation

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Additional Interactive Media


Interactive TVAllows the Viewer to Interact
With the Television
Program and Advertising

WirelessCommunications to Users Through


Satellite Broadcast Systems or Cellular Phone
Systems

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Chapter XVI

Sales Promotion

Sales Promotion
A direct inducement that offers an extra value or
incentive for the product to the sales force, distributors,
or the ultimate consumer with the primary objective of
creating an immediate sale.

An Extra
Incentive to Buy

A Tool to
Speed up Sales
Targeted to
Different Parties

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Sales Promotion Vehicles


Consumer-Oriented

Trade-Oriented

Samples

Contests, Dealer Incentives

Coupons

Trade Allowances

Premiums (e.g., rewards)

Point-of-purchase Displays

Contests/sweepstakes

Training Programs

Refunds/rebates

Trade Shows

Bonus Packs

Cooperative Advertising

Price-off Deals
Frequency
Programs
(e.g., accumulating points
Frequency
Programs
for frequent purchases)

Event Marketing

Reasons for Increase in Sales Promotion


Growing Power of Retailers

Reasons

Declining Brand Loyalty


Increased Promotional Sensitivity
Brand Proliferation (Plenty of substitute/similar brands in the

Brand Proliferation
marketplace)

Fragmentation of Consumer Markets


Short-Term Focus of Marketers
Increased Accountability
Competition
Clutter
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Objectives of Consumer-Oriented Sales


Promotion
To Increase
Consumption of an
Established Brand

To Obtain Trial and


Purchase

Objectives

Enhance IMC Efforts


and Build Brand
Equity
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

To Defend (Maintain)
Current Customers

To Target a Specific
Segment

Sampling
Sampling Works Best When

The Products Are of


Relatively Low Unit
Value, So Samples
Dont Cost Much

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Products Are


Divisible and Can Be
Broken Into Small Sizes
That Can Reflect the
Products Features and
Benefits

The Purchase Cycle


Is Relatively Short
So the Consumer
Can Purchase in a
Relatively Short
Time Period

Sampling Methods
Door-to-door
Methods

Direct Mail
Central Location Distribution
In-store Sampling
Cross-product Sampling
Co-op Package Distribution
With Newspaper / Magazine
Event Sampling
Internet Sites

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Coupons
The
Oldest and
Most Widely Used
Sales Promotion Tool

Nearly
240 Billions
Distributed Each
Year in the US

Coupons
80
Percent of
Consumers
Use Coupons and
25% Use Them Regularly
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advantages and Limitations of Coupons


Advantages

Disadvantages

Appeal to Price Sensitive


Consumer

Difficult to Determine How Many


Consumers Will Use Coupons and
When

Can Offer Price Break Without


Retailers Coop

Coupons Are Often Used by Loyal


Consumers Who May Purchase
Anyway

Can Be Effective Way to Induce


Trial of New or Existing Products

Declining Redemption Rates and


High Costs of Couponing

Can Be a method to Defend


Can Be Way to Defend Market
Market Share and Encourage
Share and Encourage Repurchase
Repurchase

Misredemption and Fraud

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Premiums
Premium: an offer of an item of merchandise
or service either free or at a low cost that is an
extra incentive for customers

Two Types of Premiums


Free Premiums:
Free
Premiums:
Only Require
Purchase of the
Only Require
Product
(usuallyPurchase
small giftsof
included
in the product
the Product
package. E.g., toys, balls)
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Self-liquidating Premiums:
Require Consumer to Pay Some
or All of the Cost of the
Premium, but lower than
retailers prices.

Contests and Sweepstakes


Contest: a promotion where consumers compete for prizes or money on
the basis of skills or ability. Winners are determined by judging entries
or ascertaining which entry comes closes to some predetermined
criteria

Sweepstakes/games: a promotion where winners are determined purely


by chance and cannot require a proof of purchase as a condition for
entry. Winners are chosen by random selection from game entrants
(e.g., scratch-off cards, collecting game pieces).

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Other Popular Consumer Sales Promotion Tools

Bonus Packs

Refunds and
Rebates

Other
Promotional Tools

Event Marketing

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Price-off Deals

Frequency/
Loyalty Programs

Trade-Oriented Sales Promo Objectives


Obtain Distribution of
New Products

Maintain Trade Support


for Existing Products

Objectives

Build Retail Inventories

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Encourage Retailers to
Display
Existing Brands

Types of Trade-Oriented Promotions


Contests and Incentives
Trade Allowances

Buying Allowances

Point-of-Purchase Displays

Promotional
Allowances

Sales Training Programs


Trade Shows
Cooperative Advertising
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Slotting Allowances

Types of cooperative advertising


Horizontal
Cooperate
Advertising

IngredientSponsored
Coop Advertising

Cooperative
Advertising
Vertical
Cooperative
Advertising
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Shifting Role of the Promotion Agency


Traditional

New & Improved

Created Tactics

Creates Strategy

Do Single Project

Continuing Service

Hired for Specialty

One Full-service Firm

Single Agency Contact

Agency Team Contact

Inferior to Ad Agency

Equal to Ad Agency

Indirect Accountability

Directly Accountable

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Chapter XVII
Public Relations, Publicity, and
Corporate Advertising

Benefits of Sound Public Relations Program


Advantages

Disadvantages

A Cost-effective Way to Reach


the Market

Lack of Control Over Media

A Highly Targeted Way to


Conduct Public Relations

Difficult to Tie in Slogans or Other


Advertising Devices

Endorsements by Independent
Third Parties

Media Time and Space Arent


Guaranteed

Achievement of Credibility

No Standards for Effective


Measurement

Makes Advertising Messages


More Credible
Breaks Though the Clutter
Circumvents Resistance to Sales
Efforts
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Traditional PR Perspective
Customers

Community

Investors

Public Relations
Department
Suppliers

Government

Employees
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Process of Public Relations


Determining and Evaluating Public Attitudes

Establishing a PR Plan

Developing and Executing a PR Program

Measuring Program Effectiveness

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Research on Public Attitudes


Provides Input for the
Planning Process

Serves As an Early
Warning System

Increases
Communications
Effectiveness

Secures Internal
Cooperation, Support

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Implementing the PR Program


Press Releases
Press
Conferences

Interviews

PR Tools
Exclusives (One

The Internet

Particular
Medium to
Exclusives
cover the story)

Community
Involvement
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advantages of Public Relations


Credibility

Image Building

Cost Savings

PR
Provides
Selectivity (some
products
appeal to
Selectivity
small segments)

Avoidance of
Clutter
Lead Generation
(Providing important
information, e.g., Medical
Innovations)

Lead Generation
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Publicity
The Generation of News About a Person, Product, or
Service That Appears in the Media

Part of the PR Process

May Be Out of the Marketers Control

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advantages and Disadvantages of Publicity


Advantages

Disadvantages

Substantial Credibility

Timing Difficult or
Impossible to Control

News Value

Inaccuracy, Omission, or
Distortion May Result.

Significant Word-of-mouth

Perception of Endorsement
by Media
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Objectives of Corporate Advertising


Create a Positive
Image for the Firm
Communicate the
Organizations
Viewpoint

Establish Diversified
Companys Identity

Objectives
Help
Deregulated
HelpNewly
Newly
Industries (ease consumer
Deregulated
uncertainty & answer
Industries
investor questions)

Boost Employee
Morale
Smooth Labor
Relations

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Why Is Corporate Advertising Controversial?

Corporate Advertising Is a
Waste of Money

Consumers Arent
Interested in This Form of
Advertising

Claims of
Opponents to
Corporate
Advertising

This Is a Costly Form of


Corporate Self-indulgence

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

The Firms Finances or


Image Must Be in Trouble

Types of Corporate Advertising


Image Advertising

General Image Ads


Positioning Ads

Event Sponsorship

Sponsorship
Recruitment

Advocacy Advertising
(addresses social, business
or environmental issues)

Cause-related
Advertising
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Financial Support

Event Sponsorship
Corporate Sponsor

Sporting
Events

Music,
Entertainment

Causes

Festivals

Cultural Events

Arts

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advocacy Advertising

Advocacy advertising:
is the propagation (spread) of ideas and
elucidation (clarification) of controversial
social issues of public importance in a
manner that supports the interests of the
sponsor.

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Cause Related Marketing

Cause related marketing:


is a form of marketing whereby companies
link with charities or nonprofit
organizations as contributing sponsors.

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Advantages and Disadvantages of


Corporate Advertising
Advantages

Disadvantages

Excellent Vehicle for


Positioning the Firm

May Have Questionable


Effectiveness

Takes Advantage of Benefits


Derived From Public
Relations

Raises Questions of Constitutionality


and Ethics (Large firms have lots of
money and this allows them to
control public opinion unfairly)

Reaches a Selected Target


Market

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Chapter XVIII
Personal Selling

Determining the Role of Personal Selling


Personal Selling: Is all about a person-to-person communication process

What
What Information
Information Must
Must Be
Be Exchanged
Exchanged Between
Between Firm
Firm and
and
Potential
Potential Customer?
Customer?
What Are the Alternative Ways to Carry Out These Communications
What
Are the Alternative Ways to Carry Out These
Objectives? (i.e., Promotional Mix alternatives, e.g., Direct Marketing, Sales
Communications
Objectives?
Promotion, Public Relations,
etc.)

How Effective Is Each Alternative in Carrying Out the


Needed Exchange? (Evaluation)

How Cost Effective Is Each Alternative?

When the Sales Force is a Major Part of IMC


Product or
Service

Price

Channels

Advertising

Complex goods
or services

Final price
negotiable

Channel short
and direct

Major purchase
decisions

Price provides
adequate margin

Training needed
by intermediaries

Media do not
provide an
effective link

Personal
demonstration
required

Selling needed
to push product
through

Intermediaries
can provide
personal selling

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Information can
not be provided
by media
Sparse market
reduce
advertising
economies

Stages of Personal Selling Evolution


Provider Stage

Selling Activity Limited to


Order-taking & deliver to buyers)
(Order-taking

Persuader Stage

Attempting to Persuade Customer


Attempting to Persuade Customer
to Buy (Attempts to convince anyone to buy the
to Buy
product)

Prospector Stage

Seeking Out Buyers Perceived to


Seeking Out Buyers Perceived to
Have a Need (Seeking Prospects for available
Have a Need
products)

Problem-solver Stage

Buyers Identify Problems to Be


Buyers Identify Problems to Be
Met by Goods (Matching available offerings
Met by Goods
with needs/want)

Procreator Stage

Seller Determines Buyer Needs


and Fulfills Them (creating unique offerings to
mach buyers needs)

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

New Roles for Salespeople


Surveying
Surveying (Learning
more about consumers)

Mapmaking (Laying out


Mapmaking
a plan and a solution)

Guiding (bringing

Fire Starting (driving the


Customer to a solution)

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

incremental value to the


Guiding
customer by identifying
problems & opportunities)

Customer Relationship Management

The organizations effort to


develop a long term, cost
effective link with individual
customers for mutual benefit.

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Personal Selling Responsibilities


Locating Prospective Customers
Determining Customers Needs and Wants

Recommending a Way to Satisfy Them


Demonstrating Capabilities of the Product
Closing the Sale
Following up and Servicing the Account
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Types of Sales Jobs


Requires the Most Skill and Preparation

Creative Selling
Must Assess Situation, Determine Needs

This Role Is Much More Casual

Order Taking
Often Involves Straight Rebuying

Missionary
Sales Rep
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

This Is Essentially a Support Role


May Not Actually Take the Order (but introduce new
products, new promotions and/or new programs)

Personal Selling Advantages


and Disadvantages
Advantages

Disadvantages

Two-way Interaction
With Prospect

Messages May Be Inconsistent

Message Can Be
Tailored to Recipient

Possible Management-Sales
Force Conflict

Prospect Isn't Likely


to Be Distracted

Cost Is Often
Extremely High

Seller Involved in Purchase


Decision

Reach May Be
Very Limited

Source of Research Information

Potential Ethical Problems

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Personal Selling Combines With Other Tools


Advertising

Public Relations

Personal
Selling

Direct Marketing

Sales Promotion

The Internet
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Combining Personal Selling and PR


Rep Is Often Best Source of PR

Representative of the Organization

Involved in Community

Creates Goodwill
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Combining Personal Selling with Sales


Promotions

Promotions Often Targeted to Rep

Promotions Used As Selling Aids for Representative

Reps Introduce Promotions to Trade

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Criteria for Judging Personal Selling's


Contribution
Are
Provide
theyGood
providing
Marketing
good Marketing
Intelligence?
Information?

Use of Follow-up Activities with new and/or existing customers


Are Follow-up Activities Conducted Well?
(e.g., Customers opinions) to evaluate their contributions ?

Number of Promotional Programs Being Implemented by


Are Promo Programs Being Implemented?
sales force?

Are they attaining Communications Objectives?

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Quantitative Measures of Sales Results


Orders

Sales Volume

Sales Related
Activities

Margins

Quantitative
Measures
Selling Skills

Customer Service

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Selling Expenses

Customer
Accounts

Sales Calls

Qualitative Measures of Sales Results

Selling Skills

Sales Related Activities


(e.g., Positive W-O-M)

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Chapter XIX
Measuring the Effectiveness of the
Promotional Program

Reasons for and Against Measuring


Effectiveness
Measuring the Effectiveness of the Promotional Program: Is all about
determining how well the communication program is working and to measure the
performance against standards.
Reasons to Measure

Reasons Not to Measure

Avoid Costly Mistakes (e.g., Bad


Avoid Costly Mistakes
Print/TV Ads)

Cost of Measurement

Evaluate Strategies (e.g., which


Evaluate Strategies
medium should be used)

Problems With Research

Increase
Increase Efficiency
Efficiency of
ofAdvertising
Advertising
in
in General
General (e.g., Avoid too

Disagreement
AboutWhat
Whattoto
Disagreement About
Test
Test Increase in Sales Volume or
(e.g.,

creative/sophisticated Ads)

Impact on Corporate Image)

Determine
Determine If
If Objectives
Objectives Are
Are
Achieved
Achieved

Creative Objections (e.g., creative


depts. Say that tests are not true
measures)

Measuring Advertising Effectiveness


What to test

Where
Whereto
totest
test

Source
Source
factors
factors
(Spokesperson)
Message
Message
variables
variables
Media
Media
strategies
strategies
(Broadcast
Versus
Print Media)
Budget
decisions
Budget decisions

Laboratory
tests
Laboratory
tests
(People are
brought
totests
a location & tests are
Field
implemented e.g., eye tracking,
Galvanometer)
Field tests (e.g., survey studies)

How to test

When to test

Testing guidelines
Appropriate tests [e.g.,

Pretesting
Pretesting
Posttesting
Posttesting

Concept generation testing (pre) or


Market testing (post)]
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Pretesting Methods
Laboratory
Consumer
Consumer Juries
Juries
Portfolio Tests (Respondents are exposed to a

Portfolio Tests

portfolio consisting of both control and test ads)

Physiological Measures (eye


Physiological
Measures
tracking, Awareness
and Recall measures)
Theater Tests (Resp. Are invited by
Theater Tests
tel., Mail or tickets)
Rough Tests (testing a rendering of
Rough Tests
the final ad at early stages)
Concept Tests (Consumers opinion to

Concept
Tests
a potential ad)

Reliability
Tests (Determining how
Reliability Tests
trustworthy the ad campaign is?)

Comprehension
Comprehensionand
andReaction
ReactionTests
(e.g., personal interviews/surveys to
Tests
measure respondents comprehension of
the ad)

Field
Dummy
DummyAd
AdVehicles
Vehicles(e.g., An ad is
placed in dummy magazines
developed by an agency or research
firm. Recall, readership & interest of
the ads are assessed)

On-air Tests [inserting the


commercials into actual TV
programs. Then, on air testing is
carried out (e.g., Nielsen is well
known providers of on-air tests)]

Field Posttesting Methods


Recall Tests
Tracking Studies
Association Measures

[Tracking the effect of the Ad


campaign using tracking
measurements (e.g.,
awareness, recall & interest
tests)]

Association
(e.g., what product this ad
Measures
is associated with)
Methods

Recognition Tests
Single-Source
Systems:
Single-Source

(Allow advertisers to assess


the impact of their ads in
various media based on
consumers recognition of an

Recognition Tests
Ad.)

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

(Tracking buying behaviors


from
the
TV
Ad
to
supermarket checkout using a
specific card)

Systems
Inquiry Tests (inquiries
generated from Ads
Inquiry
Tests
appearing in various
print media)

The Testing Process


1.Concept Testing

2.Rough Testing (Based on the early stages

2.Rough Testing

testing, rough tests must indicate how the finished


commercial would perform)

Occurs at Various
Stages

3.Finished Art or Commercial


Testing

4.Market Testing (Post-testing)


2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Concept Testing
Objective

Explores Consumers Responses to Ad Concepts Expressed in


Words, Pictures, or Symbols

Alternatives Are Exposed to Consumers Who Match the the


Target Audience

Method

Reactions and Evaluations Are Sought Through Focus Groups,


Direct Questioning, Surveys, Etc.
Sample Sizes Depend on the Number of Concepts and the
Consensus of Responses

Output

Qualitative And/or Quantitative Data Evaluating and


Comparing Alternative Concepts

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Rough Art, Copy, and Commercial Testing


Comprehension and Reaction Tests
Consumer Juries
Advantages

Disadvantages

Control

Consumer May Become a Selfappointed Expert

Cost Effectiveness

Number of Ads That Can Be


Evaluated Is Limited

Endorsements by Independent
Third Parties

A Halo Effect Is Possible

Achievement of Credibility

Preference for Ads Types


May Overshadow Objectivity

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Rough Testing Terms


Animatic Rough

Terms

Photomatic Rough

Live-action Rough

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Pretesting Finished Print Ads


A Laboratory Method
Portfolio Tests

Includes Test and Control Ads


Portfolio Test Have Problems

Based
100 Words
Basedon
onSyllables
Syllables(Sketch)
Per 100 Per
Words
Readability Tests
Other Factors Also Considered

Dummy Advertising
Vehicles

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Pretesting Finished Broadcast Ads


Theater Tests

On-Air Tests

Measures changes in product


preferences

Insertion in TV programs in specific


markets

May also measure . . .


Interest in and reaction to the
commercial
Reaction from an adjective
checklist
Recall of various aspects
included
Interest in the brand presented
Continuous (frame-by-frame)
reactions

Limitations are imposed by dayafter recall

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Physiological Measures (e.g., Eye


tracking, Awareness and Recall
measures)

Market Testing Print Ads


Inquiry Tests

Recognition Tests

Testing

Tracking Studies

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Recall Tests

Market Testing Broadcast Commercials


Persuasive Measures
Day After Recall Tests

(e.g., Which product would


you
like to win,
then the
Persuasive
Measures
question is asked again
during the experiment)

Diagnostics (these
Tracking Studies

Testing

Comprehensive
Comprehensive
Measures
Measures

Single-source Tracking

Test Marketing

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

measures
designed to
Diagnostics
obtain viewers evaluations
of the Ad. & how well it is
understood)

Essentials of Effective Testing


Use a Consumer
Response Model

Establish
Communications
Objectives

Use Pretests and


Posttests

Testing

Understand and
Implement Proper
Research
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Use Multiple
Measures

Chapter XX
International Advertising and
Promotion

Reasons for the Importance of


International Markets
Domestic Markets for Many
Products and Services Are Stagnant

Many Companies Rely on Foreign Markets to Survive, Particularly


Those With Small Domestic Markets

International Markets Offer


Growth Opportunities for Many Companies

Competition Has Become Global and


Marketers Must Be Able to Compete Globally

The International Environment


Economic
Environment

Cultural
Environment
International
Marketing
And

Promotional
Decisions
Demographic
Environment

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Political/Legal
Environment

Advertising Aspects Subject to Regulation


Type of Products That May Be Advertised
The Content or Creative Approach Used
The Media Advertisers Are Permitted to Use
The Amount of Advertising One Can Use
The Use of Foreign Languages in Ads
Use of Ad Materials From Outside the Country
Use of Local Versus International Ad Agencies
The Specific Taxes Levied on Advertising
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Global Marketers Dilemma


Should we offer the
same product,
marketing, and
advertising
throughout the
world?

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Should we adapt the


product, marketing, and
advertising to each of
several societies
throughout the world?

Global Marketing and Advertising


Advantages
Economies of Scale in Production, Distribution

Lower Costs With Less in Planning and Control


Lower Advertising and Production Costs
Ability to Exploit Good Ideas Worldwide
Ability to Introduce Products Quickly, Worldwide
Consistent International Brand, Company Identity

Simplification of Coordination and Control


2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Problems With Global Advertising


Differences in Culture, Market and Economic
Conditions Make It Difficult to Use Global Advertising

Consumers Needs and Usage


Patterns Often Vary by Country or Region

Media Availability or Usage May


Vary by Country or Region

Legal Restrictions May Make It


Difficult to Develop an Effective Universal Appeal

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

When is Globalization Appropriate


Brands can be adopted for visual appeal, avoiding
problems of translating words into many
languages
Brands promoted with image campaigns playing to
universal appeals such as sex or wealth
Globalization
Often Works Best
For:

High-tech products, new to the world, not steeped


in the cultural heritage of the country of origin
Products with with a nationalistic flavor if the
country has a favorable reputation in the field

Products appealing to a market segment with


universally similar tastes, interests, needs, and
values
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Global Products, Local Messages


An In-between Approach
Standardizing Products

Localizing Ad Messages

Think Globally, Act


Locally

Adapt Messages to Respond To


Differences in Language

Differences in Cultural

Use of Pattern
Advertising

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Differences in Market
Conditions

Decision Areas in International Advertising

Organization

Coordination of Other
IMC Tools

Agency Selection

Decision Areas
Advertising and Market
Research

Media Selection

Creative Decisions

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Centralization of International
Advertising
Budgeting
Media
Strategy

Agency
Selection
Central Authority

Campaign
Development

Creative
Strategy
Research

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Decentralization of International Advertising


Campaigns

Region
One

Creative
Media
Research
Budgets
Campaigns

Central
Authority

Region
Two

Creative
Media
Research
Budgets

Campaigns

Region
Three

Creative

Media
Research
Budgets

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Creative Decisions
Creative Decisions Should Be Based on Advertising and Communication
Objectives

Copy Platforms Must Be


Developed That Include Major Selling Ideas

Specific Appeals and


Execution Styles Must Be Selected

Appeals May Have to Be


Adapted for Local Market Conditions

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

International Media Selection Issues


Quality
Coverage
Widely Differing
Characteristics

Restrictions
Availability

Cost
Availability
Reliability
Circulation
Audience

Cost
2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Media Information
Problems

Foreign Market Sales Promotion Programs

Major Creation
Considerations

Economic Development
Market Maturity

Consumer Perceptions
Trade Structure [Wholesaling, Retailing (e.g., strengths

Trade
Structure
& Strategic locations), Government involvements, policies]
Regulations

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

Role of Public Relations in Global Marketing


Deal With Local Governments, Media, Trade Associations and the General
Public

Present the Company As a Good Corporate Citizen

Serve As Part of the IMC Program and Help Market the Product or Service

Deal With Specific Issues and Problems the Company May Face in Foreign
Markets

2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin