© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 19-6 TYPES OF ADVERTISEMENTS Advertising Product Advertisements  Competitive (or Persuasive)  Pioneering (or Informational)  Comparative  Reminder  Reinforcement

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide 19-8 ADVERTISEMENT 19-A ADVERTISEMENT 19-A Pioneering product advertisement: iMac

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide TYPES OF ADVERTISEMENTS Institutional Advertisements  Pioneering Institutional  Advocacy  Competitive Institutional  Reminder Institutional

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide ADVERTISEMENT 19-E ADVERTISEMENT 19-E Institutional advocacy advertisement: Motion Picture Association of America, Inc.

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide DEVELOPING THE ADVERTISING PROGRAM Identifying the Target Audience Setting the Advertising Budget Specifying Advertising Objectives

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 19-1 FIGURE 19-1 Super Bowl, super dollars, super audience

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide Sierra Mist Why advertise during the Super Bowl?

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide DEVELOPING THE ADVERTISING PROGRAM Designing the Advertisement  Message Content Fear Appeals Sex Appeals Humorous Appeals  Creating the Actual Message

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide Partnership for a Drug Free America What is the appeal and purpose of this ad?

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin ETHICS AND SOCIAL RESPONSIBILITY ALERT Who Decides What Is “Appropriate” Advertising? Slide 19-35

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 19-A FIGURE 19-A Top 15 advertising slogans of the century

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 19-B FIGURE 19-B Top 10 advertising icons of the century

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide DEVELOPING THE ADVERTISING PROGRAM Selecting the Right Media  Advertising Media Maximizing Exposure  Choosing a Medium and a Vehicle within That Medium Minimizing Costs

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 19-2 FIGURE 19-2 U.S. advertising expenditures, by category (in millions of dollars)

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide DEVELOPING THE ADVERTISING PROGRAM Selecting the Right Media  Basic Terms Frequency Frequency Gross Rating Points (GRPs) Gross Rating Points (GRPs) Reach Reach Rating Rating Cost per Thousand (CPM) Cost per Thousand (CPM)

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 19-3 FIGURE 19-3 The language of the media buyer

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide DEVELOPING THE ADVERTISING PROGRAM Different Media Alternatives  Television Wasted Coverage Digital Video Recorders (DVRs) Out-of-Home TV “Spot” Ads Infomercials Infomercials

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 19-4 FIGURE 19-4 Advantages and disadvantages of major advertising media

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide DEVELOPING THE ADVERTISING PROGRAM Different Media Alternatives  Radio  Magazines  Newspapers  Yellow Pages

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide DEVELOPING THE ADVERTISING PROGRAM Different Media Alternatives  Internet Rich Media Online Advertising Options Permission-Based Advertising

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide DEVELOPING THE ADVERTISING PROGRAM Different Media Alternatives  Outdoor Billboards Transit Advertising Place-Based Media  Other Media  Selection Criteria

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide DEVELOPING THE ADVERTISING PROGRAM Scheduling the Advertising  Buyer Turnover  Purchase Frequency  Forgetting Rate  Continuous (Steady) Schedule  Flighting (Intermittent) Schedule  Pulse (Burst) Schedule

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide EXECUTING THE ADVERTISING PROGRAM Pretesting the AdvertisingPretesting the Advertising  Portfolio Tests  Jury Tests  Theater Tests

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide EXECUTING THE ADVERTISING PROGRAM Carrying Out the Advertising Program  Full-Service Agency Full-Service Agency  Limited-Service Agencies Limited-Service Agencies  In-House Agencies In-House Agencies

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 19-5 FIGURE 19-5 Alternative structures of advertising agencies used to carry out the advertising program

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide EVALUATING THE ADVERTISING PROGRAM Posttesting the AdvertisingPosttesting the Advertising  Aided Recall (Recognition-Readership)  Unaided Recall  Attitude Tests  Inquiry Tests  Sales Tests Making Needed Changes

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide SALES PROMOTION Consumer-Oriented Sales Promotion  Coupons  Deals  Premiums Self-Liquidating  Contests  Sweepstakes

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide FIGURE 19-6 FIGURE 19-6 Sales promotion alternatives

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide SALES PROMOTION Consumer-Oriented Sales Promotion  Samples  Loyalty Programs  Point-of-Purchase Displays  Rebates  Product Placement Product Placement

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide SALES PROMOTION Trade-Oriented Sales Promotion  Allowances and Discounts  Cooperative Advertising Cooperative Advertising Merchandise Allowance Case Allowance Finance Allowance  Training of Distributors’ Salesforces

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide PUBLIC RELATIONS Publicity Tools  News Release  News Conference  Public Service Announcements (PSAs)  Personal Appearance/Visibility

© 2006 McGraw-Hill Companies, Inc., McGraw-Hill/IrwinSlide INCREASING THE VALUE OF PROMOTION Building Long-Term Relationships with Promotion Self-Regulation