Basic Marketing – Chapter 16 Supplementary PowerPoint Archive This is an archive of photos and exhibits from the text and additional graphics and exhibits as referenced in the Basic Marketing Multimedia Lecture Guides. See the Basic Marketing Multimedia Lecture Support Package for additional detail and teaching suggestions. For use only with Perreault/Cannon/McCarthy. 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. McGraw-Hill/Irwin Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.

Subway’s Jared opening photo 16-2

Exhibit 16-1: Advertising, Publicity, and Sales Promotion 16-3

Rejoice ad 16-4

Air New Zealand ad 16-5

Exhibit 16-3: Examples of Different Types of Advertising over Adoption Process Stages 16-6

Exhibit 16-4: Types of Advertising 16-7

Celebrity Cruises ad 16-8

General Mills Milk ‘n Cereal bars comparative ad 16-9

Exhibit 16-5: Ad Spending, Percent Growth, and Advantages and Disadvantages of Major Media 16-10

Microsoft ad 16-11

Sprint ad 16-12

ITT global engineering photo 16-13

Exhibit 16-6: Number of Internet Users In Different Parts of the World 16-14

MSN website in Spanish 16-15

Nescafe ad 16-16

Got Milk? ad 16-17

G2B Sandals ad 16-18

Oklahoma Truck Supply ad 16-19

Scotch Magic tape ad 16-20

Exhibit 16-7: Top Eight Advertising Agency Supergroups 16-21

website 16-22

Coke Zero ad 16-23

AMD ad 16-24

Insignia POPs sales promotion ad 16-25

Promo Edge sales promotion ad 16-26

M&M’s business ad 16-27

Epson photo 16-28

Mass Selling  Involves big bucks—about $285 billion in 2006  Work is done by relatively few people  Major expense is for media time and space  largest share (24%) goes for television (including cable)  direct mail takes about 22% of the total  newspapers take about 14% of the total  U.S. companies spend an average of only about 2.5 percent of sales for advertising 16-29

Ariel international ad 16-30

Examples of Some General Advertising Objectives  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 16-31

Kinds of Advertising and Objectives  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 16-32

AIG and Philips institutional ad 16-33

Chapstick reminder ad 16-34

Coordinating Advertising Efforts Horizontal Cooperation Horizontal Cooperation Cooperative Advertising Cooperative Advertising Allowances Advertising Allowances 16-35

Major Advertising Media  Television  Direct mail  Newspapers  Radio  Yellow Pages  Magazines  Internet (growing rapidly)  Outdoor 16-36

Media Selection Factors  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! 16-37

EStyle and SiTV ads 16-38

NASCAR race car photo 16-39

Advertising on the Internet  Ads take many forms  Includes banners, pop-ups, pop-unders, 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  Search ads know what customers are looking for  Behavioral targeting delivers ads based on previous websites the customer has visited  Interactive communication thinking: some websites just get results  Charges apply only when response is achieved  Internet advertising is attracting many mainline advertisers, but is still feeling its way 16-40

Wuleuva copy thrust ad 16-41

Army Special Forces billboard ad 16-42

Bianco unique selling proposition ad 16-43

Kiwi Express Shine Sponge unique selling proposition ad 16-44

Ad Agencies  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 16-45

WonderGroup and FloorGraphics ads 16-46

cedes-Benz and QuickTake.com effectiveness ads 16-47

Advertising Regulation  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 16-48

Sales Promotion  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 16-49

Sony’s interactive kiosk photo 16-50

Charmin 3-part sales promotion photo set 16-51

HP trade show photo 16-52

A Competitive Ad That’s Comparative 16-53

Competitive Advertising Emphasizes Selective Demand 16-54

International Dimensions Are Important 16-55

Reminder Advertising Reinforces a Favorable Relationship 16-56