1 Identify the major types of advertising Describe media evaluation and selection techniques Review the role of public relations in the promotional mix Copyright 2010 by Cengage Learning Inc. All Rights Reserved

 What are the effects of advertising on market share  What are the effects on consumers  What types of creative decisions must be made in order to develop an effective advertising campaign

3  In recent years, 30 companies spent over $1 billion each  The advertising and marketing services employ approximately 750,000 people.  Ad budgets of some firms are almost $4 billion annually. Copyright 2010 by Cengage Learning Inc. All Rights Reserved

4 Top Ten Leaders by U.S. Advertising Spending Copyright 2010 by Cengage Learning Inc. All Rights Reserved

5  The average U.S. citizen is exposed to hundreds of ads each day.  Advertising may change a consumer’s negative attitude toward a product, or reinforce a positive attitude.  Advertising can affect consumer ranking of a brand’s attributes. Copyright 2010 by Cengage Learning Inc. All Rights Reserved

6 Institutional Advertising- Enhances a company’s image rather than promotes a particular product. Product Advertising- Touts the benefits of a specific good or service. Copyright 2010 by Cengage Learning Inc. All Rights Reserved

7 Corporate identity Pioneering Competitive Comparative Product Advertising Product Advertising Institutional Advertising Institutional Advertising Advocacy advertising Copyright 2010 by Cengage Learning Inc. All Rights Reserved

9 PioneeringPioneering  Stimulates primary demand for new product or category  Used in the PLC introductory stage CompetitiveCompetitive  Influences demand for brand in the growth phase of the PLC  Often uses emotional appealComparativeComparative  Compares two or more competing brands’ product attributes  Used if growth is sluggish, or if competition is strong Online Copyright 2010 by Cengage Learning Inc. All Rights Reserved

10 LO 2 Copyright 2010 by Cengage Learning Inc. All Rights Reserved

11 Advertising Campaign - A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals. Copyright 2010 by Cengage Learning Inc. All Rights Reserved

12 Develop and evaluate advertising appeals Develop and evaluate advertising appeals Execute the message Evaluate the campaign’s effectiveness Evaluate the campaign’s effectiveness Identify product benefits Copyright 2010 by Cengage Learning Inc. All Rights Reserved

13  “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 Copyright 2010 by Cengage Learning Inc. All Rights Reserved

14 Attribute Benefit “SoBe Life Water has reformulated five delicious, low-calorie flavors, each infused with essential vitamins and healthy herbal ingredients.” “SoBe Life Water is not only an enhanced water; it is a lifestyle unto itself. It provides consumers the healthiest, most fun and refreshing products, delivering the incredibly positive benefits of hydration.” - So? Copyright 2010 by Cengage Learning Inc. All Rights Reserved

15 Profit Health Love or romance Fear Admiration Convenience Fun and pleasure Vanity and egotism Environmental Consciousness Product saves, makes, or protects money Appeals to body-conscious or health seekers Used in selling cosmetics and perfumes Social embarrassment, old age, losing health Reason for use of celebrity spokespeople Used for fast foods and microwave foods Key to advertising vacations, beer, parks Used for expensive or conspicuous items Centers around environmental protection Copyright 2010 by Cengage Learning Inc. All Rights Reserved

16 A desirable, exclusive, and believable advertising appeal selected as the theme for a campaign. Copyright 2010 by Cengage Learning Inc. All Rights Reserved

Mood or Image Musical Demonstration Scientific Real/ Animated Product Symbols Real/ Animated Product Symbols Fantasy Lifestyle Slice-of- Life Humorous Spokes- person/ Testimonial Spokes- person/ Testimonial Copyright 2010 by Cengage Learning Inc. All Rights Reserved 17

18 LO 3 Set advertising objectives Identify benefits Develop appeal Evaluate campaign results Evaluating results helps marketers adjust objectives for future campaigns Execute message Copyright 2010 by Cengage Learning Inc. All Rights Reserved

19 Newspapers Magazines Radio Television Outdoor Media Yellow Pages Internet Copyright 2010 by Cengage Learning Inc. All Rights Reserved

20  In 2006, Microsoft acquired Massive inc., a start-up that places ads in video games.  Ads are inserted into the game environment.  Video games could become a large new medium for advertising. SOURCE: Robert A. Guth and Nick Wingfield, “Microsoft’s ‘Massive’ Move into Game Ads,” Wall Street Journal, April 26,2006, B1. Copyright 2010 by Cengage Learning Inc. All Rights Reserved

21  Newest advertising media.  Useful for reaching youth market.  Over 4 billion cell phone users in the world.  In 2008 cell phone ad sales reached over $1.6 billion in U.S. – nearly $4.4 billion worldwide. Copyright 2010 by Cengage Learning Inc. All Rights Reserved

FIGURE 16-1 FIGURE 16-1 Television, direct mail, and newspapers account for more than 60% of all advertising expenditures (in $ millions) 16-22

23  Media Mix – Combination of media to be used for a promotional campaign  Cost per contact – The cost of reaching one member of the target market  Reach – number of target consumers exposed to a commercial at least once during a specific period, usually four weeks  Frequency – number of times an individual is exposed to a given message during a specific period Copyright 2010 by Cengage Learning Inc. All Rights Reserved

USING MARKETING DASHBOARDS What is the Best Way to Reach 1,000 Customers? Cost per Thousand (CPM) Impressions LO

25 Continuous Media Schedule Flighted Media Schedule Pulsing Media Schedule Seasonal Media Schedule Advertising is run steadily throughout the period. Advertising is run heavily every other month or every two weeks. Advertising combines continuous scheduling with flighting. Advertising is run only when the product is likely to be used. Copyright 2010 by Cengage Learning Inc. All Rights Reserved

26 LO 4 Type: Newspaper Magazine Radio Television Outdoor Internet Alternative Considerations: MixHow much of each? Cost per contact How much per person? ReachHow many people? FrequencyHow often? Audience selectivityHow targeted is audience? Scheduling: continuous flighted pulsing seasonal WinterSpringSummer Fall Copyright 2010 by Cengage Learning Inc. All Rights Reserved

27 The elements in the promotional mix that: -evaluate public attitudes, -identify issues of public concern, -execute programs to gain public acceptance. Copyright 2010 by Cengage Learning Inc. All Rights Reserved

28 LO 5 Copyright 2010 by Cengage Learning Inc. All Rights Reserved

FIGURE 16-A FIGURE 16-A Alternative structures of advertising agencies used to carry out the advertising program 16-29