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Slide 19-1. C HAPTER. ADVERTISING, SALES PROMOTION, AND PUBLIC RELATIONS. Slide 19-2. AFTER READING THIS CHAPTER YOU SHOULD BE ABLE TO:. Explain the differences between product advertising and institutional advertising and the variations within each type.

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slide2

CHAPTER

ADVERTISING, SALES PROMOTION, AND PUBLIC RELATIONS

Slide 19-2

slide3

AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:

  • Explain the differences between product advertising and institutional advertising and the variations within each type.
  • Describe the steps used to develop, execute, and evaluate an advertising program.

Slide 19-3

slide4

AFTER READING THIS CHAPTERYOU SHOULD BE ABLE TO:

  • Explain the advantages and disadvantages to alternative advertising media.
  • Discuss the strengths and weaknesses of consumer-oriented and trade-oriented sales promotions.
  • Recognize public relations as an important form of communication.

Slide 19-4

slide5

TYPES OF ADVERTISEMENTS

  • Advertising
  • Product Advertisements
  • Pioneering (or Informational)
  • Competitive (or Persuasive)
  • Comparative
  • Reminder
  • Reinforcement

Slide 19-6

slide6

TYPES OF ADVERTISEMENTS

  • Institutional Advertisements
  • Advocacy
  • Pioneering Institutional
  • Competitive Institutional
  • Reminder Institutional

Slide 19-17

slide7

Concept Check

1. What is the difference between pioneering and competitive ads?

A: Pioneering ads tell people what a product is, what it can do, and where it can be found. Competitive ads promote a specific brand’s features and benefits to persuade the target market to select the firm’s brand rather than that of a competitor.

Slide 19-25

slide8

Concept Check

2. What is the purpose of an institutional advertisement?

A: To build goodwill or an image for an organization.

Slide 19-26

slide9

DEVELOPING THEADVERTISING PROGRAM

  • Identifying the Target Audience
  • Specifying Advertising Objectives
  • Setting the Advertising Budget

Slide 19-27

slide11

DEVELOPING THEADVERTISING PROGRAM

  • Designing the Advertisement
  • Message Content
  • Fear Appeals
  • Sex Appeals
  • Humorous Appeals
  • Creating the Actual Message

Slide 19-31

slide12

ETHICS AND SOCIAL RESPONSIBILITY ALERT

Who Decides What Is“Appropriate” Advertising?

Slide 19-35

slide15

Concept Check

1. What are characteristics of good advertising objectives?

A: The same guidelines used for setting promotion objectives described in Chapter 18: They should (1) be designed for a well-defined target audience, (2) be measurable, and(3) cover a specified time period.

Slide 19-41

slide16

Concept Check

2. What is a potential shortcoming of using a celebrity spokesperson?

A: The spokesperson’s image may change to be inconsistent with the image of the company or brand.

Slide 19-42

slide17

DEVELOPING THEADVERTISING PROGRAM

  • Selecting the Right Media
  • Advertising Media
  • Choosing a Medium and a Vehicle within That Medium
  • Maximizing Exposure
  • Minimizing Costs

Slide 19-43

slide19

DEVELOPING THEADVERTISING PROGRAM

  • Selecting the Right Media
  • Basic Terms
  • Reach
  • Rating
  • Frequency
  • Gross Rating Points (GRPs)
  • Cost per Thousand (CPM)

Slide 19-45

slide21

DEVELOPING THEADVERTISING PROGRAM

  • Different Media Alternatives
  • Television
  • Out-of-Home TV
  • “Spot” Ads
  • Wasted Coverage
  • Digital Video Recorders (DVRs)
  • Infomercials

Slide 19-47

slide23

Ronco InfomercialsWhat are the advantages and disadvantagesof this medium?

Click on Icon

Slide 19-50

slide24

DEVELOPING THEADVERTISING PROGRAM

  • Different Media Alternatives
  • Radio
  • Magazines
  • Newspapers
  • Yellow Pages

Slide 19-51

slide25

DEVELOPING THEADVERTISING PROGRAM

  • Different Media Alternatives
  • Internet
  • Rich Media
  • Online Advertising Options
  • Permission-Based Advertising

Slide 19-59

slide26

MARKETING NEWSNET

Does Internet Advertising Really Work?

Slide 19-61

slide27

DEVELOPING THEADVERTISING PROGRAM

  • Different Media Alternatives
  • Outdoor
  • Billboards
  • Transit Advertising
  • Other Media
  • Place-Based Media
  • Selection Criteria

Slide 19-62

slide28

DEVELOPING THEADVERTISING PROGRAM

  • Scheduling the Advertising
  • Buyer Turnover
  • Purchase Frequency
  • Forgetting Rate
  • Continuous (Steady) Schedule
  • Flighting (Intermittent) Schedule
  • Pulse (Burst) Schedule

Slide 19-65

slide29

Concept Check

1. You see the same ad in Time and Fortune magazines and on billboards and TV. Is this an example of reach or frequency?

A: frequency

Slide 19-66

slide30

Concept Check

2. Why has the Internet become a popular advertising medium?

A: The Internet offers a visual message, can use both audio and video, is interactive through rich media, and tends to reach younger consumers.

Slide 19-67

slide31

Concept Check

3. What factors must be considered when choosing among alternative media?

A: The media habits of the target audience, the product’s attributes, and the reach and cost, as measured by CPM.

Slide 19-68

slide32

EXECUTING THEADVERTISING PROGRAM

  • Pretesting the Advertising
  • Portfolio Tests
  • Jury Tests
  • Theater Tests

Slide 19-69

slide33

EXECUTING THEADVERTISING PROGRAM

  • Carrying Out the Advertising Program
  • Full-Service Agency
  • Limited-Service Agencies
  • In-House Agencies

Slide 19-70

slide34

FIGURE 19-5 Alternative structures of advertising agencies used to carry out the advertising program

Slide 19-71

slide35

EVALUATING THEADVERTISING PROGRAM

  • Posttesting the Advertising
  • Aided Recall (Recognition-Readership)
  • Unaided Recall
  • Attitude Tests
  • Inquiry Tests
  • Sales Tests
  • Making Needed Changes

Slide 19-72

slide36

Concept Check

1. Explain the difference between pretesting and posttesting advertising copy.

A: Pretests are conducted before ads are placed in any medium to determine whether the ads communicate the intended message or select among alternative versions. Posttests are shown to the target audience to determine whether it accomplished its intended purpose.

Slide 19-74

slide37

Concept Check

2. What is the difference between aided and unaided recall posttests?

A: Aided recall involves showing an ad to respondents who then are asked if their previous exposure to it was through reading, viewing, or listening. Unaided recall involves asking respondents if they remember an ad without any prompting to determine if they saw or heard its message.

Slide 19-75

slide38

SALES PROMOTION

  • Consumer-Oriented Sales Promotion
  • Coupons
  • Deals
  • Premiums
  • Self-Liquidating
  • Contests
  • Sweepstakes

Slide 19-76

slide40

SALES PROMOTION

  • Consumer-Oriented Sales Promotion
  • Samples
  • Loyalty Programs
  • Point-of-Purchase Displays
  • Rebates
  • Product Placement

Slide 19-80

slide41

SALES PROMOTION

  • Trade-Oriented Sales Promotion
  • Allowances and Discounts
  • Merchandise Allowance
  • Case Allowance
  • Finance Allowance
  • Cooperative Advertising
  • Training of Distributors’ Salesforces

Slide 19-85

slide42

Concept Check

1. Which sales promotional tool is most common for new products?

A: sales promotion

Slide 19-86

slide43

Concept Check

2. What’s the difference between a coupon and a deal?

A: A coupon provides a reduced price for an item based on redemption.A deal is a short-term price reduction.

Slide 19-87

slide44

Concept Check

3. Which trade promotion is used on an ongoing basis?

A: trade allowance

Slide 19-88

slide45

PUBLIC RELATIONS

  • Publicity Tools
  • News Release
  • News Conference
  • Public Service Announcements (PSAs)
  • Personal Appearance/Visibility

Slide 19-89

slide46

INCREASING THE VALUEOF PROMOTION

  • Building Long-Term Relationships with Promotion
  • Self-Regulation

Slide 19-92

slide47

Concept Check

1. What is a news release?

A: An announcement regarding changes in the company or the product line.

Slide 19-93

slide48

Concept Check

2. What is the difference between government regulation and self-regulation?

A: Government regulation involves laws or other controls set by an agency of local, state, or federal government, whereas self-regulation involves ethical guidelines for business practices set by advertising agencies, trade associations, and marketing organizations.

Slide 19-94

slide49

ADVERTISINGON THE INTERNET

GOING ONLINE

Slide 19-95

slide50

Going Online

  • 1.Visit the Interactive Advertising Bureau website and review the “Standards and Guidelines” section to determine what type of online ad you would recommend.How many types of (a) rectangles and pop-ups, (b) banners and buttons, and (c) skyscrapers does the IAB specify?

Slide 19-96

slide51

Going Online

  • 2.Describe the profile of the audience for each of the websites.

Slide 19-97

slide52

Going Online

  • 3.What does the IAB suggest you include in your online advertising privacy policy?

Slide 19-98

slide53

A HISTORICAL LOOKAT ADVERTISING

SUPPLEMENTALLECTURE NOTE 19-1

Slide 19-99

slide54

SHOULD ADVERTISERS BELIEVE TV RATINGS?

SUPPLEMENTALLECTURE NOTE 19-2

Slide 19-100

slide55

ONLINE ADVERTISING TAKES OFF!

SUPPLEMENTALLECTURE NOTE 19-3

Slide 19-101

slide56

A HISTORICAL LOOK ATTHE OBJECTIVES OFSALES PROMOTIONS

SUPPLEMENTALLECTURE NOTE 19-4

Slide 19-102

slide57

ARE YOU ALOYAL CUSTOMER?

SUPPLEMENTALLECTURE NOTE 19-5

Slide 19-104

slide59

VIDEO CASE 19

Fallon Worldwide

  • 1.Fallon Worldwide stresses its creativity, as shown by comments from the Fallon people in the case. In what ways do the Citi and BMW campaigns reflect their creativity? Compare the sources of the ideas in the two campaigns.

Slide 19-107

slide60

VIDEO CASE 19

Fallon Worldwide

  • 2.In the Citi and BMW campaignshow were (a) the target markets and (b) each brand’s positioning changed from the situation prior to the campaign?

Slide 19-108

slide61

VIDEO CASE 19

Fallon Worldwide

  • 3.Compare the media used for the Citi and BMW campaigns. Why were these media chosen? Do you expect the use of these or other media to change in the future?

Slide 19-109

slide62

VIDEO CASE 19

Fallon Worldwide

  • 4.How might Fallon and its clients measure the success of (a) the Citi and (b) the BMW campaigns?

Slide 19-110

slide63

VOLKSWAGEN:THE DRIVERS WANTED CAMPAIGN

APPENDIX D CASE D-19

Slide 19-111

slide64

APPENDIX D CASE D-19

Volkswagen

  • 1.What were the primary promotional objectives for Volkswagen at the beginning of the “Drivers Wanted” campaign? What are Volkswagen’s current promotional objectives? How do you expect the promotional objectives for the overall Volkswagen brand and for specific car models, such as the Jetta or Touareg, to change over time?

Slide 19-112

slide65

APPENDIX D CASE D-19

Volkswagen

  • 2.What do you feel are the most valid measures for assessing the success of the Volkswagen advertising campaign? Explain why you feel that these are the best means of determining effectiveness.

Slide 19-113

slide66

APPENDIX D CASE D-19

Volkswagen

  • 3.Volkswagen’s promotional program has heavily emphasized a pull promotional strategy versus a push promotional strategy. Why? Is this emphasis likely to change over time?

Slide 19-114

slide67

Advertising

Advertising is any paid form of nonpersonal communication about an organization, good, service, or idea byan identified sponsor.

Slide 19-115

slide68

Product Advertisements

Product advertisements are advertisements that focus on selling a good or service and which take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and(3) reminder.

Slide 19-116

slide69

Institutional Advertisements

Institutional advertisements are advertisements designed to build goodwill or an image for an organization rather than promote a specific good or service.

Slide 19-117

slide70

Reach

Reach is the number of different people or households exposed to an advertisement.

Slide 19-118

slide71

Rating

A rating is the percentage of households in a market that are tuned to a particular TV show or radio station.

Slide 19-119

slide72

Frequency

Frequency is the average number of times a person in the target audience is exposed to a message or an advertisement.

Slide 19-120

slide73

Gross Rating Points

Gross rating points (GRPs) is a reference number used by advertisersthat is obtained by multiplying reach (expressed as a percentage of the total market) by frequency.

Slide 19-121

slide74

Cost per Thousand

Cost per thousand (CPM) is the cost of reaching 1,000 individuals or households with the advertising message in a given medium (M is the Roman numeral for 1,000).

Slide 19-122

slide75

Infomercials

Infomercials are program-length(30-minute) advertisements that take an educational approach to communication with potential customers.

Slide 19-123

slide76

Pretests

Pretests are tests conducted before the advertisements are placed in any medium to determine whether it communicates the intended message or to select among alternative versions of the advertisement.

Slide 19-124

slide77

Full-Service Agency

A full-service agency is an advertising agency that provides the most complete range of services, including market research, media selection, copy development, artwork, and production.

Slide 19-125

slide78

Limited-Service Agencies

Limited-service agencies are advertising agencies that specialize in one aspect of the advertising process such as providing creative services to develop the advertising copy or buying previously unpurchased media space.

Slide 19-126

slide79

In-House Agencies

In-house agencies consists of the company’s own advertising staff,which may provide full services or a limited range of services.

Slide 19-127

slide80

Posttests

Posttests are tests conducted after an advertisement has been shown to the target audience to determine whether it accomplished its intended purpose.

Slide 19-128

slide81

Consumer-OrientedSales Promotions

Consumer-oriented sales promotions are sales tools used to support a company’s advertising and personal selling directed to ultimate consumers.

Slide 19-129

slide82

Product Placement

Product placement is a sales promotion tool that uses a brand-name product in a movie, television show, video, or a commercial for another product.

Slide 19-130

slide83

Trade-OrientedSales Promotions

Trade-oriented sales promotions are a Sales tools used to support a company’s advertising and personal selling directed to wholesalers, distributors, or retailers. Also called trade promotions.

Slide 19-131

slide84

Cooperative Advertising

Cooperative advertising consists of advertising programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products.

Slide 19-132

slide85

Publicity Tools

Publicity tools consist of methods of obtaining nonpersonal presentation of an organization, good, or service without direct cost. Examples include news releases, news conferences, and public service announcements.

Slide 19-133