Advertising: Includes All Activities Involved in

Advertising
● Includes all activities involved in

presenting a non-personal, sponsor-
identified, paid-for message about a
product or organization.
● Can classify it by:
● The target audience: consumers or
businesses
● Product/service vs. organization/company
● Objective: Primary or selective demand
20 - 1
The Nature of Advertising
● advertising is distinguished from other forms
of promotion as follows
● it has a verbal and/or visual message
● the sponsor of the message is identified
● delivery is through recognizable media
● there is payment by the advertiser to the
media for carrying the message
● advertisers are increasingly being able to
reach specific audiences with tailor-made
messages
20 - 2
Advertising to
Target Audiences
● advertising can be classified by the
target audience to which it is directed
● consumer advertising generally
appears in mass media and is
directed to end consumers: may be
product or institutional in nature
● business-to-business advertising is
often called trade advertising and is
directed to a business market
20 - 3
What is Being Advertised?
● product advertising is designed to
promote the sale of a specific product or
service:
● may be direct-action,
direct-action quick-response
● may be indirect-action over a longer time
● institutional advertising promotes the
firm or tries to create a positive image:
● may promote customer service
● or send a public service message
20 - 4
HR
2 Major Types of Advertising Block
Enhance
Enhance
corporation’s
corporation’sidentity
identity
Institutional
Institutional
Advertising
Advertising
Advocacy
Advocacy
advertising
advertising
Pioneering
Pioneering
Product
Product
Advertising
Advertising Competitive
Competitive
Comparative
Comparative
Chap. 15 Marketing 7e Lamb Hair McDaniel 5
©2004 South-Western/Thomson Learning
2 Product Advertising On
OnLine
Line
http://www.pizzahut.com
http://www.pizzahut.com
http://www.papajohns.com
http://www.papajohns.com
• Stimulates primary demand for

Pioneering
Pioneering new product or category.
• Used in the PLC introductory stage.
• Influence demand for brand in the

Competitive
Competitive growth phase of the PLC.
• Often uses emotional appeal.
• Compares two or more competing

Comparative
Comparative brands’ product attributes.
• Used if growth is sluggish, or if
Chap. 15 Marketing 7e Lamb Hair McDaniel
competition is strong. 6
What are the Objectives?
● primary-demand advertising is
intended to stimulate use of a
category of products
● selective-demand advertising is
intended to encourage purchase of a
particular brand or the products and
services of a specific firm
20 - 7
Comparative Advertising
● Selective-demand advertising
● Involves comparing a product to its
competing brand
● May be:
● Direct, naming competitors outright
● Less direct, alluding to competitors (e.g.,
“leading brand”, “Brand X”) but not
naming them
20 - 8
Co-operative Advertising
● co-operative advertising involves

the sharing of the cost of
advertising by two or more
sponsors:
● a manufacturer and retailers (vertical),
vertical or
● a group of retailers (horizontal)
(horizontal
20 - 9
3 Advertising Campaign
A series of related
advertisements focusing
on a common theme,
slogan, and set of
advertising appeals.

Steps in Creating an
3
Advertising Campaign
Determine the
advertising objectives.
Make creative decisions. Make media decisions.
Evaluate the campaign.

Setting Objectives:
3
The DAGMAR Approach
Goal
Goal of
of
Advertising
Advertising
Objectives
Objectives
Define
Define Define
Define the
the Time
Time
Target
Target Audience
Audience Frame
Frame for
for Change
Change
Define
Define Desired
Desired
Percentage
Percentage
Change
Change

3 Creative Decisions
Identify
Identify
Product
ProductBenefits
Benefits
Develop
Developand
andEvaluate
Evaluate
Components
Components Advertising
AdvertisingAppeals
Appeals
of
of
Creative
Creative Execute
Execute
Decisions
Decisions the
theMessage
Message
Evaluate
Evaluatethe
the
Campaign’s
Campaign’sEffectiveness
Effectiveness
3 Identify Product Benefits
● “Sell the Sizzle, not the Steak”

● Sell product’s benefits,
not its attributes
● A benefit should answer
“What’s in it for me?”
● Ask “So?” to determine
if it is a benefit

3 Advertising Appeal
Reason for a person

to buy a product.

3 Common Advertising Appeals
Profit
Profit Product
Product saves,
saves, makes,
makes, or
or protects
protects money
money
Health
Health Appeals
Appeals to
to body-conscious
body-conscious or
or health
health seekers
seekers
Love
Love or
or romance
romance Used
Used in
in selling
selling cosmetics
cosmetics and
and perfumes
perfumes
Fear
Fear Social
Social embarrassment,
embarrassment, old
old age,
age, losing
losing health
health
Admiration
Admiration Reason
Reason for
for use
use of
of celebrity
celebrity spokespeople
spokespeople
Convenience
Convenience Used
Used for
for fast
fast foods
foods and
and microwave
microwave foods
foods
Fun
Fun and
and pleasure
pleasure Key
Key to
to advertising
advertising vacations,
vacations, beer,
beer, parks
parks
Vanity
Vanity and
and egotism
egotism Used
Used for
for expensive
expensive or
or conspicuous
conspicuous items
items
Environmental
Environmental Centers
Centers around
around environmental
environmental protection
protection
Consciousness
Consciousness
3 Unique Selling Proposition
Desirable, exclusive, and

believable advertising
appeal selected as the
theme for a campaign.
Jingles
Dockers
3 Executing the Message
Goodyear
Scientific
Scientific Slice-of-Life
Slice-of-Life
Musical
Musical Lifestyle
Lifestyle
Demon-
Common
Common Spokes-
Demon- person/
stration
stration Executional
Executional Testimonial
Styles
Styles
Mood
Moodoror Fantasy
Fantasy
Image
Image Real/
Real/
Animated
Animated Humorous
Humorous
Product
Product
Symbols
Symbols
Choosing Media
● Objectives of the ad.
● Audience coverage.
● Requirements of the message.
● Time and location of the buying
decision.
● Media cost (CPM)
● Media characteristics.
20 - 19
4 Media Selection Considerations
Cost
Cost per
per The
The cost
cost of
of reaching
reaching one
one
Contact
Contact member
member of
of the
the target
target market.
market.
The
The number
number of of target
target consumers
consumers
Reach
Reach exposed
exposed toto aa commercial
commercial at at least
least
once
once during
during aa time
time period.
period.
The
The number
number of of times
times an
an individual
individual
Frequency
Frequency is
is exposed
exposed to to aa message
message during
during aa
time
time period.
period.
Audience The
The ability
ability ofof an
an advertising
advertising
Audience medium
medium to to reach
reach aa precisely
precisely
Selectivity
Selectivity defined
defined market.
market.
Characteristics of
Key Media
● Newspapers: flexible, local
● Television: versatile, powerful but costly,
fragmented
● Direct Mail: personal, selective, effective,
but tough
● Radio: strong locally, cheap but single
medium
● Magazines: top quality, little flexibility
20 - 21
More
Key Media
● out-of-home advertising
● specialty advertising
● emerging media:
● World Wide Web
● infomercials
● place-based media
● videos and CD-ROMs
● yellow pages
20 - 22
4 Examples of Alternative Media
Fax
Fax Machines
Machines
Video
Video Shopping
Shopping Carts
Carts
Computer
Computer
Screen
Screen Savers
Savers
Interactive
Interactive Kiosks
Kiosks On
OnLine
Line
http://www.looksmart.com
http://www.looksmart.com
http://www.yahoo.com
http://www.yahoo.com
Ads
Ads in
in
Movies
Movies and
and Videos
Videos

Evaluating the Major Media
● newspapers are flexible and timely,
have a local orientation and wide
coverage, low cost
● television is versatile, but audience is
now fragmented, reaches mass
audiences
● direct mail is efficient, targets certain
audience
20 - 24
More Media
Evaluations
● radio stations target specific
segments, low cost, local
orientation, short message life
● magazines deliver quality
advertising to specific segments,
message stays around
20 - 25
4 Newspapers
Advantages
Advantages Disadvantages
Disadvantages
● Year-round readership ● Limited demographic

selectivity
● Geographic selectivity
● Little color
● Immediacy
● May be expensive
● High individual market
coverage ● Low pass-along rate
● Short lead time ● Clutter
● Mass market medium
4 Magazines
Advantages
Disadvantages
● Good reproduction ● Higher cost per contact
● Demographic ● Long-term advertiser

selectivity commitments
● Regional/local ● Slow audience build-up

selectivity ● Limited demonstration
● Long advertising life capabilities
● High pass-along rate ● Lack of urgency

● Long lead time
On
OnLine
Line
http://www.radioindustry.about.com
4 Radio http://www.radioindustry.about.com
Advantages
Disadvantages
● Selectivity and ● No visual treatment
audience segmentation
● Short advertising life
● Immediate and portable
● High frequency to
● Geographic flexibility generate retention
● Entertainment ● Commercial clutter
carryover
● Background
● Short-term ad distractions
commitments

On
OnLine
Line
http://www.fox.com
http://www.fox.com
4 Television http://www.abc.com
http://www.abc.com
Advantages
Disadvantages
● Wide, diverse audience ● Short life of message

● Low cost per thousand ● Expensive with high
campaign cost
● Creative and
demonstrative ● Little demographic
selectivity with network
● Immediacy of messages
● Long-term advertiser
● Entertainment carryover commitments
● Demographic selectivity ● Long lead times
with cable
● Clutter
On
OnLine
Line
http://www.bannerite.com
http://www.bannerite.com
4 Internet http://www.flash-banner-design.com
http://www.flash-banner-design.com
Advantages
Disadvantages
● Fast growing ● Difficult to measure ad

effectiveness and ROI
● Ability to reach narrow
target audience ● Ad exposure relies on
“click through”
● Short lead time
● Not all consumers
● Moderate cost have access to internet

4 Media Scheduling
Continuous
Continuous Advertising
Advertising is
is run
run steadily
steadily
Media
Media Schedule
Schedule throughout
throughout the
the period.
period.
Flighted
Flighted Advertising
Advertising is
is run
run heavily
heavily every
every
Media
Media Schedule
Schedule other
other month
month oror every
every two
two weeks.
weeks.
Pulsing
Pulsing Advertising
Advertising combines
combines continuous
continuous
Media
Media Schedule
Schedule scheduling
scheduling with
with flighting.
flighting.
Seasonal
Seasonal Advertising
Advertising is
is run
run only
only when
when the
the
Media
Media Schedule
Schedule product
product is
is likely
likely to
to be
be used.
used.

The Changing Nature
of Media
● media are becoming less mass, more targeted
● cable TV offers many specialty channels
● direct-to-home TV adds to fragmentation
● lots of new out-of-home media
● Yellow Pages and other directories on CD-
ROM
● place-based media where they shop and live
● advertising on the Web works as Yellow Pages
does -- the customer seeks out the advertiser
20 - 32
Evaluating Advertising
● It is difficult to measure the sales
effectiveness of advertising because:
● Ads have different objectives.
● Ads can have an effect over time period.
● Measurement problems.
● Effectiveness can be tested:

● Before an ad is presented.
● While it is being presented.
● After it has completed its run.
20 - 33
Organizing for Advertising
● Develop an internal advertising
department.
● Many large retailers do this.
● Use an outside advertising agency.
● Specialized, skilled professionals.
● Experienced, many services offered
● Do both.
20 - 34
Sales Promotion
● Demand-stimulating devices designed to
supplement advertising and facilitate
personal selling.
● Sales promotions include such things as
coupons, in-store displays, premiums,
trade shows, in-store demonstrations,
and contests.
● The target for these activities may be
middlemen, end users, or the producer’s
own salesforce.
20 - 35
Types of Sales Promotion
● Trade promotions, directed to

members of the distribution channel.
● Consumer promotions, aimed at
consumers.
● Consumers got 3.3 billion coupons
for packaged goods alone in 1996.
20 - 36
Advantages of
Sales Promotion
● It can produce short-term results.
● Competitors are using sales
promotions.
● Sales promotions are attractive
to price-conscious consumers.
● Can enhance/facilitate retail
salesmanship which is often of
low quality.
20 - 37
Key Reasons for
Sales Promotion
● Stimulating end-user demand.
● Sampling program for new/improved product
● Improving the marketing performance
of middlemen and salespeople.
● Sell more, win a holiday trip.
● Supplementing advertising and
facilitating personal selling.
● Displays, promotional giveaways
20 - 38
Managing Sales Promotion
● Select from wide range of techniques,
depending on your objectives
● Select promotional devices based on:
● Nature of target audience
● Your promotional objectives: Push vs. Pull.
● Cost of device-- sampling can get costly.
● Current economic conditions-- coupons, rebates
work best in recessionary period.
● Evaluating Sales Promotion:
● Much easier than with advertising.
● Usually clear start, finish, goal.
20 - 39
Public Relations
● A tool designed to influence favourably
attitudes towards an organization, its
products and policies.
● Public relations is often overlooked by
management because of:
● Organization structure; not in marketing.
● Inadequate definitions; loosely defined.
● Unrecognized benefits; many non-believers.
20 - 40
Publicity
Publicity is a form of public

relations that includes any
communication about an
organization or its products that
is presented by the media but is
not paid for by the organization.
20 - 41
Strengths of Publicity
● Can announce new products, recognize
employees, report good results, breakthroughs.
● Key Benefits:
● Lower cost than advertising or personal selling.
● Increased readership; advertising ignored often.
● More information.
● Timeliness.
20 - 42
Weaknesses of Publicity
● Some loss of control over message.
● Limited exposure; only happens
once.
● Not free; preparation costs.
20 - 43
5 Public Relations
The
The Role
Role of
of
Public
Public Relations
Relations
Executes
Executesprograms
programs
Evaluates
Evaluates public
public to
togain
gainpublic
public
attitudes
attitudes acceptance
acceptance
Identifies
Identifiesissues
issues of
of
public
publicconcern
concern

5 Functions of Public Relations
Press
Press Relations
Relations
Product
Product Publicity
Publicity
Corporate
Corporate Communication
Communication
Public
Public Affairs
Affairs
Lobbying
Lobbying
Employee
Employee and
and Investor
Investor Relations
Relations
Crisis
Crisis Management
Management
5 Public Relations Tools ETrade 2
On
OnLine
Line
http://www.bmwfilms.com
http://www.bmwfilms.com
New
New Product
Product Publicity
Publicity
Product
Product Placement
Placement
Consumer
Consumer Education
Education
Event
Event Sponsorship
Sponsorship
Issue
Issue Sponsorship
Sponsorship
Internet
Internet Web
Web Sites
Sites
5 Crisis Management
A coordinated effort to
handle the effects of
unfavorable publicity or of
an unfavorable event.


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Advertising: Includes All Activities Involved in

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Advertising

● Includes all activities involved in

• Stimulates primary demand for

• Influence demand for brand in the

• Compares two or more competing

● co-operative advertising involves

Chap. 15 Marketing 7e Lamb Hair McDaniel 10

Make creative decisions. Make media decisions.

Evaluate the campaign.

Chap. 15 Marketing 7e Lamb Hair McDaniel 11

Chap. 15 Marketing 7e Lamb Hair McDaniel 12

● “Sell the Sizzle, not the Steak”

Chap. 15 Marketing 7e Lamb Hair McDaniel 14

Reason for a person

Chap. 15 Marketing 7e Lamb Hair McDaniel 15

Desirable, exclusive, and

Chap. 15 Marketing 7e Lamb Hair McDaniel 23

● Year-round readership ● Limited demographic

● Good reproduction ● Higher cost per contact

● Demographic ● Long-term advertiser

● Regional/local ● Slow audience build-up

● High pass-along rate ● Lack of urgency

Chap. 15 Marketing 7e Lamb Hair McDaniel 28

● Wide, diverse audience ● Short life of message

● Fast growing ● Difficult to measure ad

Chap. 15 Marketing 7e Lamb Hair McDaniel 30

Chap. 15 Marketing 7e Lamb Hair McDaniel 31

● Effectiveness can be tested:

● Trade promotions, directed to

Publicity is a form of public

Chap. 15 Marketing 7e Lamb Hair McDaniel 44

Chap. 15 Marketing 7e Lamb Hair McDaniel 47

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