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Slide 19-1

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  1. Slide 19-1

  2. CHAPTER ADVERTISING, SALES PROMOTION, AND PUBLIC RELATIONS Slide 19-2

  3. 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

  4. 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

  5. TYPES OF ADVERTISEMENTS • Advertising • Product Advertisements • Pioneering (or Informational) • Competitive (or Persuasive) • Comparative • Reminder • Reinforcement Slide 19-6

  6. TYPES OF ADVERTISEMENTS • Institutional Advertisements • Advocacy • Pioneering Institutional • Competitive Institutional • Reminder Institutional Slide 19-17

  7. 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

  8. Concept Check 2. What is the purpose of an institutional advertisement? A: To build goodwill or an image for an organization. Slide 19-26

  9. DEVELOPING THEADVERTISING PROGRAM • Identifying the Target Audience • Specifying Advertising Objectives • Setting the Advertising Budget Slide 19-27

  10. FIGURE 19-1 Super Bowl, super dollars, super audience Slide 19-28

  11. DEVELOPING THEADVERTISING PROGRAM • Designing the Advertisement • Message Content • Fear Appeals • Sex Appeals • Humorous Appeals • Creating the Actual Message Slide 19-31

  12. ETHICS AND SOCIAL RESPONSIBILITY ALERT Who Decides What Is“Appropriate” Advertising? Slide 19-35

  13. FIGURE 19-A Top 15 advertising slogans of the century Slide 19-39

  14. FIGURE 19-B Top 10 advertising icons of the century Slide 19-40

  15. 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

  16. 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

  17. 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

  18. FIGURE 19-2 U.S. advertising expenditures, by category (in millions of dollars) Slide 19-44

  19. DEVELOPING THEADVERTISING PROGRAM • Selecting the Right Media • Basic Terms • Reach • Rating • Frequency • Gross Rating Points (GRPs) • Cost per Thousand (CPM) Slide 19-45

  20. FIGURE 19-3 The language of the media buyer Slide 19-46

  21. DEVELOPING THEADVERTISING PROGRAM • Different Media Alternatives • Television • Out-of-Home TV • “Spot” Ads • Wasted Coverage • Digital Video Recorders (DVRs) • Infomercials Slide 19-47

  22. FIGURE 19-4 Advantages and disadvantages of major advertising media Slide 19-48

  23. Ronco InfomercialsWhat are the advantages and disadvantagesof this medium? Click on Icon Slide 19-50

  24. DEVELOPING THEADVERTISING PROGRAM • Different Media Alternatives • Radio • Magazines • Newspapers • Yellow Pages Slide 19-51

  25. DEVELOPING THEADVERTISING PROGRAM • Different Media Alternatives • Internet • Rich Media • Online Advertising Options • Permission-Based Advertising Slide 19-59

  26. MARKETING NEWSNET Does Internet Advertising Really Work? Slide 19-61

  27. DEVELOPING THEADVERTISING PROGRAM • Different Media Alternatives • Outdoor • Billboards • Transit Advertising • Other Media • Place-Based Media • Selection Criteria Slide 19-62

  28. DEVELOPING THEADVERTISING PROGRAM • Scheduling the Advertising • Buyer Turnover • Purchase Frequency • Forgetting Rate • Continuous (Steady) Schedule • Flighting (Intermittent) Schedule • Pulse (Burst) Schedule Slide 19-65

  29. 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

  30. 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

  31. 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

  32. EXECUTING THEADVERTISING PROGRAM • Pretesting the Advertising • Portfolio Tests • Jury Tests • Theater Tests Slide 19-69

  33. EXECUTING THEADVERTISING PROGRAM • Carrying Out the Advertising Program • Full-Service Agency • Limited-Service Agencies • In-House Agencies Slide 19-70

  34. FIGURE 19-5 Alternative structures of advertising agencies used to carry out the advertising program Slide 19-71

  35. EVALUATING THEADVERTISING PROGRAM • Posttesting the Advertising • Aided Recall (Recognition-Readership) • Unaided Recall • Attitude Tests • Inquiry Tests • Sales Tests • Making Needed Changes Slide 19-72

  36. 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

  37. 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

  38. SALES PROMOTION • Consumer-Oriented Sales Promotion • Coupons • Deals • Premiums • Self-Liquidating • Contests • Sweepstakes Slide 19-76

  39. FIGURE 19-6 Sales promotion alternatives Slide 19-77

  40. SALES PROMOTION • Consumer-Oriented Sales Promotion • Samples • Loyalty Programs • Point-of-Purchase Displays • Rebates • Product Placement Slide 19-80

  41. SALES PROMOTION • Trade-Oriented Sales Promotion • Allowances and Discounts • Merchandise Allowance • Case Allowance • Finance Allowance • Cooperative Advertising • Training of Distributors’ Salesforces Slide 19-85

  42. Concept Check 1. Which sales promotional tool is most common for new products? A: sales promotion Slide 19-86

  43. 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

  44. Concept Check 3. Which trade promotion is used on an ongoing basis? A: trade allowance Slide 19-88

  45. PUBLIC RELATIONS • Publicity Tools • News Release • News Conference • Public Service Announcements (PSAs) • Personal Appearance/Visibility Slide 19-89

  46. INCREASING THE VALUEOF PROMOTION • Building Long-Term Relationships with Promotion • Self-Regulation Slide 19-92

  47. Concept Check 1. What is a news release? A: An announcement regarding changes in the company or the product line. Slide 19-93

  48. 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

  49. ADVERTISINGON THE INTERNET GOING ONLINE Slide 19-95

  50. 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