Principles of Marketing - UNBSJ BA 2303 Principles of Marketing - UNBSJ Advertising, Sales Promotion, and Public Relations Instructor – Terry Conrod

Learning Objectives BA 2303 Explain the differences between product advertising and institutional advertising and the variations with each type. Describe the steps used to develop, execute, and evaluate an advertising program. Explain the advantages and disadvantages of 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.

TYPES OF ADVERTISEMENTS BA 2303 TYPES OF ADVERTISEMENTS Product Advertisements Advertisements that focus on selling a good or service and take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3) reminder Institutional Advertisements Advertisements designed to build goodwill or an image for an organization, rather than promote a specific good or service. Pioneering ads, used in the introductory stage of the PLC, 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. The difference between the two types of ads is its purpose. Pioneering ads are used to inform, and competitive ads are used to persuade. Direct-response advertising seeks to motivate the customer to take immediate action. For example, a television commercial that invites the customer to "order now". 3

DEVELOPING THE ADVERTISING PROGRAM BA 2303 DEVELOPING THE ADVERTISING PROGRAM Identifying the Target Audience Specifying Advertising Objectives Setting the Advertising Budget Designing the Advertisement Message Content Creating the Actual Message http://www.youtube.com/watch?v=njauitC80KE 4

What are the three common advertising appeals? BA 2303 Concept Check What are the three common advertising appeals? Answer: Three common advertising appeals are: (1) Fear, (2) Sex, and (3) Humour 5

BA 2303 Concept Check Who is responsible for turning appeals and product features into attention-getting advertising? Answer: The "creative people" in an advertising agency, copywriters and art directors, have the responsibility to turn appeals and features such as quality, style, dependability, economy, and service into attention-getting, believable advertisements. 6

DEVELOPING THE ADVERTISING PROGRAM BA 2303 DEVELOPING THE ADVERTISING PROGRAM Selecting the Right Media Choosing a Medium and a Vehicle within That Medium Basic Terms Reach Rating Frequency Gross Rating Points Cost Per Thousand (CPM) 7

BA 2303 Canadian advertising expenditures by medium, as a percentage of total ad spending 8

The language of the media buyer BA 2303 The language of the media buyer 9

BA 2303 Advantages and disadvantages of major advertising media 10

What factors must be considered when choosing among alternative media? BA 2303 Concept Check What factors must be considered when choosing among alternative media? Answer: Selection criteria between alternative media are: (1) Know the media habits of the target audience, (2) Product attributes may necessitate the use of certain media, and (3) Cost 11

BA 2303 Concept Check You see the same ad in Time and Maclean’s magazines and on billboards and TV. Is this an example of reach or frequency? Answer: The same ad in Time and Maclean's is an example of frequency. Frequency is the average number of times a person in the target audience is exposed to a message or advertisement. 12

Why has the Internet become a popular advertising medium? BA 2303 Concept Check Why has the Internet become a popular advertising medium? Answer: The Internet has become a popular medium because of its: (1) Visual message, (2) Audio capability, (3) Movement, and (4) Interactive feature 13

Alternative structures of ad agencies BA 2303 Alternative structures of ad agencies 14 © 2008 McGraw-Hill Ryerson Ltd. All rights reserved.

BA 2303 Concept Check Explain the difference between pre-testing and post- testing advertising copy. Answer: The difference between pre-testing and post- testing is that pre-tests are conducted before the advertisements are placed in any medium. Some advertisements may go through post-tests after it has been shown to the target audience to determine whether it accomplished its intended purpose. 15

What is the difference between aided and unaided recall post-tests? BA 2303 Concept Check What is the difference between aided and unaided recall post-tests? Answer: After being shown an ad, aided recall is when respondents are asked whether their previous exposure to an ad was through reading, viewing, or listening. Unaided recall is when respondents are prompted to determine whether they saw or heard advertising messages. Questions such as, "What ads do you remember seeing yesterday?" are used. 16

SALES PROMOTION Consumer-Oriented Sales Promotions BA 2303 Coupons Deals Premiums Contests Sweepstakes Samples Loyalty Programs Point-of-Purchase Displays Rebates Product Placement 17

Sales promotion alternatives BA 2303 Sales promotion alternatives 18

SALES PROMOTION Trade-Oriented Sales Promotions BA 2303 Allowances and Discounts Co-operative Advertising Training of Distributors’ Salesforces 19

Which sales promotional tool is most common for new products? BA 2303 Concept Check Which sales promotional tool is most common for new products? Answer: The most common sales promotional tool for new products is coupons. 20

What’s the difference between a coupon and a deal? BA 2303 Concept Check What’s the difference between a coupon and a deal? Answer: The difference between a coupon and a deal is: Coupons are printed certificates that give the bearer a saving or a stated price reduction when they purchase a specific product. Deals are short- term price reductions that do not require the purchaser to present a certificate. 21

Which trade promotion is used on an ongoing basis? Concept Check Which trade promotion is used on an ongoing basis? Answer: A trade promotion used on an ongoing basis is finance allowance. 22

BA 2303 Advertising Any paid form of non-personal communication about an organization, good, service, or idea by an identified sponsor.

Product Advertisements BA 2303 Product Advertisements Advertisements that focus on selling a good or service and take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3) reminder.

Institutional Advertisements BA 2303 Institutional Advertisements Advertisements designed to build goodwill or an image for an organization, rather than promote a specific good or service.

Reach The number of people or households exposed to an advertisement. BA 2303 Reach The number of people or households exposed to an advertisement.

BA 2303 Rating The percentage of households in a market that are tuned to a particular TV show or radio station.

BA 2303 Frequency The average number of times a person in the target audience is exposed to a message or advertisement.

Gross Rating Points (GRP’s) BA 2303 Gross Rating Points (GRP’s) A reference number for advertisers, created by multiplying reach (expressed as a percentage of the total market) by frequency.

Cost per Thousand (CPM) BA 2303 Cost per Thousand (CPM) The cost of reaching 1,000 individuals or households with an advertising message in a given medium.

BA 2303 Infomercials Program-length (30-minute) advertisements that take an educational approach to communication with potential consumers.

BA 2303 Pre-tests Tests conducted before an advertisement is placed to determine whether it communicates the intended message or to select among alternative versions of an advertisement.

BA 2303 Full-Service Agency An advertising agency providing the most complete range of services, including market research, media selection, copy development, artwork, and production.

Limited-Service Agencies BA 2303 Limited-Service Agencies Specializes in one aspect of the advertising process such as providing creative services to develop the advertising copy or buying previously unpurchased media space.

BA 2303 In-House Agencies A company’s own advertising staff, which may provide full services or a limited range of services.

BA 2303 Post-tests Tests conducted after an advertisement has been shown to the target audience to determine whether it has accomplished its intended purpose.

Consumer-Oriented Sales Promotions BA 2303 Consumer-Oriented Sales Promotions Sales tools used to support a company’s advertising and personal selling efforts directed to ultimate consumers, examples include coupons, sweepstakes, and samples.

BA 2303 Product Placement Using a brand-name product in a movie, television show, video, or a commercial for another product.

Trade-Oriented Sales Promotions BA 2303 Trade-Oriented Sales Promotions Sales tools used to support a company’s advertising and personal selling efforts directed to wholesalers, distributors, or retailers.

Co-operative Advertising BA 2303 Co-operative Advertising Advertising programs by which a manufacturer pays a percentage of the retailer’s local advertising expense for advertising the manufacturer’s products.

Consumer-Generated Media BA 2303 Consumer-Generated Media Media generated by consumers in which the consumers absorb the time and cost of promotion efforts and marketers do not necessarily control what is communicated and how it is communicated.