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basic marketing chapter 16 supplementary powerpoint archive
Basic Marketing - Chapter 16Supplementary PowerPoint Archive

This is an archive of photos and exhibits from the text (as well as associated graphics and exhibits from the color transparencies and overheads) to supplement the Interactive PowerPoint Lecture slideshow for this chapter and the PowerPoint file with color print ads.

See the Basic Marketing Multimedia Lecture Support Package for additional detail and teaching suggestions.

For use only with Perreault and McCarthy texts. These images may not be redistributed or used for any other purpose without permission of the publisher, McGraw-Hill/Irwin, The McGraw-Hill Companies, Inc.

For use only with Perreault and McCarthy texts. © 2005 McGraw-Hill Companies, Inc. McGraw-Hill/Irwin

mass selling overhead 173
“Mass Selling,” Overhead 173
  • Involves "big bucks"—about $236 billion in 2002
  • Work is done by relatively few people
  • Major expense is for media time and space
    • largest share (28%) goes for television (including cable)
    • newspapers take about 22% of the total
    • direct mail takes about 23% of the total
  • U.S. companies spend an average of only about 2.5 percent of sales for advertising
“Advertising Spending as Percent of Sales for Illustrative Product Categories,” Overhead 174: (Exhibit 16-2)


Petroleum refining (0.7)

Computers and office equipment (1.1)

Dairy products (1.3)

Motor vehicles and car bodies (2.2)

Greeting cards (2.4)

Investment advice (2.5)

Cable and pay TV (3.3)

Sporting and athletic goods (3.9)

Footwear (4.6)

Soft drinks, water (4.8)

Business services (5.3)

Malt beverages (9.8)

Transportation services (11.1)

Games and toys (11.2)

Perfumes and cosmetics (11.2)

Soap and detergent (11.3)

  • Retailers:
    • Grocery stores (1.3)
    • Hotels and motels (1.4)
    • Women's clothing stores (3.7)
    • Eating places (3.8)
    • Furniture stores (5.8)
    • Videotape rental stores (5.8)
    • Catalog, mail-order houses (8.4)
    • Amusement parks (12.8)
examples of some general advertising objectives overhead 175
“Examples of Some General Advertising Objectives,” Overhead 175
  • Help introduce new products to specific target markets
  • Help position the firm's brand or marketing mix by informing and persuading target customers or middlemen about its benefits
  • Help obtain desirable outlets (distribution)
  • Prepare the way for the personal selling effort
  • Provide on-going contact with target customers
  • Get immediate buying action
  • Help buyers confirm purchasing decisions
“Examples of Different Types of Advertising over Adoption Process Stages,” Transparency 106: (Exhibit 16-3)
kinds of advertising and objectives overhead 176
“Kinds of Advertising and Objectives,” Overhead 176
  • PRODUCT ADVERTISING tries to sell a specific product—to final users or channel members
    • Pioneering ads build primary demand
    • Competitive ads build selective demand
  • INSTITUTIONAL ADVERTISING tries to promote an organization's image, reputation, or ideas—rather than a specific product
coordinating advertising efforts overhead 177
“Coordinating Advertising Efforts,” Overhead 177

Advertising Allowances





major advertising media overhead 178
“Major Advertising Media,” Overhead 178
  • Television
  • Newspapers
  • Direct mail
  • Radio
  • Yellow Pages
  • Magazines
  • Outdoor
  • Internet (growing rapidly)
media selection factors overhead 179
“Media Selection Factors,” Overhead 179
  • Promotion objectives
  • Target market you need to reach
  • Funds available
  • Nature of the media
    • who it reaches
    • with what frequency
    • at what impact
    • at what cost
  • Overall fit with the rest of the marketing mix!
“Relative Size and Costs, Advantages and Disadvantages of Major Kinds of Media,” Overhead 180: (Exhibit 16-4)
advertising on the internet overhead 181
“Advertising on the Internet,” Overhead 181
  • Ads take many forms
    • Range from banners and buttons to popups and web pages
  • Internet ads seek a direct response—a click
  • Traditional mass-media thinking: some websites generate more exposure
  • Segmentation thinking: some websites are better for reaching target customers
    • Context ads link message to content being viewed
    • Pointcasting
  • Interactive communication thinking: some websites “just get results”
    • Charges apply only when response is achieved
  • Internet advertising is attracting mainline advertisers, but is still feeling its way
ad agencies overhead 182
“Ad Agencies,” Overhead 182
  • Specialists in planning and handling mass selling details for advertisers
    • Full Service vs. Specialized
  • Many small agencies, but big ones handle the bulk of the work
  • Growth of "mega-agencies"
  • Agencies can usually be replaced at will
  • Agencies often work on a commission (percent of media purchases)
    • 15% is not required, but still common
    • Some services are provided on a fee basis (i.e., pay for what you get!)
  • Increased use of performance-based pay
top nine ad organizations and examples of products they advertise overhead 183 exhibit 16 5
“Top Nine Ad Organizations and Examples of Products They Advertise,” Overhead 183: (Exhibit 16-5)
advertising regulation overhead 184
“Advertising Regulation,” Overhead 184
  • Federal Trade Commission controls unfair or deceptive advertising
    • Can require corrective advertising
    • Focus is on what is deceptive, instead of what is subjectively defined as "unfair”
  • Comparative advertising claims may need to be substantiated
    • Rules are not always clear
    • Hard to define exactly what research is needed
sales promotion overhead 185
“Sales Promotion,” Overhead 185
  • Promotion activities—other than advertising, publicity and personal selling—that stimulate interest, trial, or purchase
  • May be targeted at channel members, final customers or users, or employees
  • Skill may be difficult to develop inside the firm—since a promotion activity is often designed and used only once
  • Sales promotion spending is increasing