Advertising, Sales Promotion, & Public Relations Chapter 17

Advertising Types Product Advertisements Institutional Advertisements Pioneering Competitive Reminder Institutional Advertisements Advocacy Pioneering Institutional Competitive Institutional Reminder Institutional Source: http://www.mccannerickson.ie/tag/recession/

Developing the Program Identifying the Target Audience Specifying Advertising Objectives Setting the Advertising Budget Designing the Advertisement Types of appeals Creating the Message Humor appeals, fear appeals, sex appeals

Developing the Program Selecting the Right Media Two goals of media selection Maximize ________ Minimize _________ Reach Rating Gross Rating Points Goals- Maximize exposure at minimum cost Reach- of people exposed Rating- % of households in a market that are tuned to a particular TV or radio show Frequency- # of times person in target market is exposed to it Gross rating points- Reach (percentage of total market) x Frequency Cost per thousand- Cost of reaching 1000 individuals or households Media TV- 95% of households; sight, sound, and motion. High costs (better recall with 2 fifteen second intervals); wasted coverage. Infomercials- 30 minute educational approach. Radio: 7x TV stations; more college audience than TV; easy to change station; limited use for visual products Magazines: 5000 magazines; special-interest magazines. Expensive, but regional publishing lowers wasted coverage. Newspapers: Large, but focus on immediate; Increasing costs of production (increase in paper costs), online newspapers, free tabloid newspapers. Internet- Banner ads, pop-ups; New so standards are evolving, less effective, “permission-based” advertising. Outdoor- Billboards, scoreboards, (visibility, access in specific markets) No lengthy copy 3 factors

Developing the Program Different media Television Radio Magazines 10.3% of global ad spending Newspapers Internet 12.6% of global ad spending Advergaming Outdoor Cell phones Source: http://donnygamble.com/mobile-marketing-advertising/

Developing the Program Scheduling the Advertising Three factors Buyer turnover Purchase frequency Forgetting rate Three approaches Continuous Flighting Pulse Buyer t-over: How often new buyers enter market Purchase freq.: More frequently=less reminder FR: Speed at which ppl forget advertising Continuous: Throughout year Flighting: Seasonal demand, so advertising lulls Pulse: Combination of the two

Executing the Advertising Pretesting Portfolio tests Jury tests Theater tests Carrying out the Advertising Full-service agency Limited-service agency In-house agency FS- Research, selection, artwork, production LS- One aspect IH- Company’s own advertising staff

Evaluating the Advertising Posttesting the Advertising Aided recall Unaided recall Attitude test Inquiry test Sales test Making Needed Changes

Source: http:..www.creativemag.com Sales Promotion $100 billion annually Consumer-Oriented Promotions Coupons Deals Premiums Contests Sweepstakes Samples Continuity programs Point-of-purchase displays Rebates Product Placement Source: kathysfastfoodtoys.com Coupons- increase sales short-term, but lower margins. Other costs (distribution, printing) Deals (2-for-1), Premiums (Free or cheap merchandise- McDs toys), Contests, Sweepstakes, samples, continuity programs, P-o-P displays, rebates, product placement Brand name product in a movie, TV show, etc. TOP- Sales tools used to support a company’s advertising and personal selling directed to wholesalers, retailers, and distributors. Allowances & discounts- Merchandise allowance (reimbursing a retailer for extra in-store support or special featuring of the brand); Case allowance (A discount on each case ordered during a specific time period); Finance allowance (Paying retailers for financing costs or financing losses associated with consumer sales promotions. Coop adv.- Manufacturer pays a percentage of the retailer’s local advertising expense for advertising manufacturer’s products. TDS- Manuals and brochures to retailers’ sales force Source: http:..www.creativemag.com

Sales Promotions Trade-Oriented Promotions Allowances and discounts Cooperative advertising Training of Distributors’ Salesforces

Public Relations Public relations tools Publicity tools New-product publicity Consumer Education Sponsorships Company websites Publicity tools News Release News Conference Public Service Announcements NR- Inform outlet of a story. 40% of all free mentions come from the news NC- Informational meeting, advance materials are sent PSAs- Nonprofit Source: http://socialtimes.com