P R O M O T I O N - Advertising

Why Do We Do Advertising Personal Selling is preferred, because it is so effective - but, it is expensive sometimes to contact EVERYBODY this way Advertising is not as direct as Personal Selling, but you can reach a lot of people

Advertising Objectives are a Strategy Decision Every ad should have clearly defined objectives these objectives guide the people who create the ads

Categories of Advertising Product Advertising Nonpersonal selling of a particular good or service. - TV ads - billboards - junk mail

other Categories of Advertising Institutional Advertising Also called Advocacy advertising

other Categories of Advertising Pioneering Advertising, also called Informative “… tries to develop primary demand…” Done in the early stage of the Product Life Cycle. Competitive Advertising Direct Indirect

other Categories of Advertising Competitive Advertising Direct Tries to get you to take action now - buy the product now. Immediate Buying Indirect Tries to point out the advantages so if you think about this product later, you will buy their brand

Comparative Advertising Advertising that makes direct comparisons with competitive brands. Companies used to hesitate to do this, but now they do it freely. Sometimes it can backfire and cause the viewer to NOT want to buy the product - if the comparison is too harsh eg. Political advertising that is too nasty

Comparative Advertising Some countries do not allow Comparative Advertising. Other countries allow it,,, but,, you have to prove any statements you make

other Categories of Advertising Reminder Advertising Done in the Maturity and Decline stage of the Product Life Cycle. You already know about the product - they want you to keep using it, even if new competitors come along. These ads are usually “soft-sell” and try to be entertaining.

Relationship between Advertising and the Product Life Cycle Competitive Comparative Pioneering Prepared for Marketing 106 Copyright, Professor W.T.G. Richardson, Seneca College

other Categories of Advertising Institutional Advertising Promoting a concept, idea, or philosophy, or the goodwill of an industry, company, or organization. This is closely related to the PR program of the company Also called Advocacy advertising

other Categories of Advertising Institutional Advertising Used often by Japanese conglomerates that have many types of products eg. Hitachi SONY Mitsubishi Panasonic (Matsushita Electronics)

other Categories of Advertising Retail Advertising Retail advertising is the advertising done by stores that sell “stuff” directly to the consumers. Co-operative Advertising The sharing of advertising costs between the middlemen and retailer and the manufacturer. This means they will co-operate to display sales promotion material and share the costs of commercials and billboards etc.

E t h i c a l I s s u e s

Joint Ads Co-Branding

Before we talk about choosing the best way to advertise, we first have to discuss our Position

Positioning Remember Chpt 3 Positioning involves developing a marketing strategy aimed at a particular market segment - in order to achieve a desired position with respect to the competition, in the mind of the buyer. ie. That buyers will think a certain way about a product - re: its competitor

Positioning 1. By attributes - shampoo (Pantene Pro V) 2. By price - Zeller’s “lowest price is the law” 3. By competitor- Snapple, “We’re #3” 4. By application - Nutrigrain - until we get beamed to work! 5. By product user - consumer, industry, govt 6. By product class - convenience, shopping, specialty goods

? - in which category is the most money spent Media Selection Newspapers Magazines Television Radio Direct Mail Outdoor ? - in which category is the most money spent

Media Selection Magazines - 12% Television - 2nd major category, 14% Newspapers - largest share of advertising, 26% Magazines - 12% Television - 2nd major category, 14% Radio - 7% Direct Mail Outdoor, billboards etc. - 6%

Advantages and Disadvantages of the Various Advertising Media Media Advantages Disadvantages Newspapers Flexibility Short lifespan Community prestige Hasty reading Intense coverage Poor reproduction Reader control of exposure Co-ordination with national advertising Merchandising service Magazines Selectivity Lack of flexibility Quality reproduction Long life Prestige associated with some magazines Extra services Television Great impact Temporary nature of Mass Coverage message Repetition High cost Flexibility High mortality rate for Prestige commercials Evidence of public distrust Lack of selectivity

Advantages and Disadvantages of the Various Advertising Media Media Advantages Disadvantages Radio Immediacy Fragmentation Low cost Temporary nature of Practical audience message selection Little research information Mobility Outdoor Quick communication of Brevity of the message Advertising simple ideas Public concern over Repetition aesthetics Ability to promote products available for sale nearby Direct Mail Selectivity High cost per person Intense coverage Dependence on quality of Speed mailing list Flexibility of format Consumer resistance Complete information Personalization

Trade Magazines

I n f o m e r c i a l s e

T V Commercials $ 2 5 0 , 0 0 0 To produce, then additional money to get “air” time

Planning The Best Message What should an ad accomplish 1. Gain attention and interest 2. Inform and persuade 3. Lead to the person buying

Planning The Best Message “Copy Thrust” the words you say to get the attention 1. Copy - the text 2. Thrust - the intention, direction

Planning The Best Message “A I D A” A - Attention I - Interest D - Desire A - Action

Direct Response Ads Call 1-800-…………. See our web site at WWW.STUFF.COM

The Advertising Campaign When developing a mktg comms strategy, you do not restrict your plan to just advertising Many things are also done such as direct mailing, PR, special events, radio, media

Assessing the Effectiveness of an Advertisement Pretesting The assessment of an advertisement’s effectiveness before it is actually used. Post-testing The assessment of advertising copy after is has been used.

Advertising Agency A marketing specialist firm that assists the advertiser in planning and preparing its advertisements. They have specialists who know all about the effect of different advertising methods and can help a company with their strategy.

Celebrity Marketing Having celebrities lend their name and influence to the promotion of a product.

Role Model Marketing Marketing technique that associates a product with the positive perception of a type of individual or role. (ie. Naya water with healthy lifeguards) Sometimes used by companies who cannot afford to pay a celebrity.