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LEARNING OBJECTIVES (LO) After reading Chapter 18, you should be able to: Explain the differences between product advertising and institutional advertising and the variations within each type. LO1 Describe the steps used to develop, execute, and evaluate an advertising program. LO2 Explain the advantages and disadvantages of alternative advertising media. LO3 1-2 The Price Foundation

Recognize public relations as an important form of communication. LEARNING OBJECTIVES (LO) After reading Chapter 18, you should be able to: Discuss the strengths and weaknesses of consumer-oriented and trade-oriented sales promotions. LO4 LO5 Recognize public relations as an important form of communication. 1-3 The Price Foundation

A Provocative Advertisement With a Serious Message 1-4 Opening Story – Robinson’s

Types of Advertisements Product Advertisements Product Advertisements Pioneering (or Informational) Competitive (or Persuasive) Product advertisements differ from institutional advertisements, as they focus on promoting a particular product, primarily to increase demand and drive sales. Comparative Reminder Reinforcement LO1 1-5 Product Advertising versus Institutional Advertising

Types of Advertisements What are the purposes of these product advertisements? From left: APB’s Archipelago ad is Pioneering: informing consumers of a new product LG’s ad is Competitive: showing the strengths of the brand to convince consumers to select it Red Bull’s ad is a Reminder ad; taking the opportunity of a current event to remind consumers of Red Bull, with a subtle, subversive joke embedded (Why do you need wings on Valentine’s day? …ahah.) LO1 1-6 Product Advertising versus Institutional Advertising

What is the type and purpose of this Ad? Dial Soap What is the type and purpose of this Ad? Dial’s ad is Reinforcing it’s consumers’ preference for the product LO1 1-7 Product Advertising versus Institutional Advertising

Types of Advertisements Institutional Advertisements Advocacy Pioneering Institutional Institutional adverts build goodwill for an Organisation; they do not sell products, at least, not directly. Goodwill for an organisation may result in a consumer’s preference for a particular brand down the line. Advocacy – Drink & drive safely, by Asia Pacific Breweries Pioneering – Inform / announce to the public what the company is about Competitive – Promotes the organisation’s product against alternatives/competitors Reminder – Reminds consumers of the advantages of the organisation Competitive Institutional Reminder Institutional LO1 1-8 Product Advertising versus Institutional Advertising

Developing the Advertising Program Planning the Program Identifying the Target Audience Specifying the Advertising Objectives Setting the Advertising Budget LO2 1-9 Developing, Executing & Evaluating an Advertising Program

Developing the Advertising Program Message Content Types of Appeals Designing the Advertisement Message Content Types of Appeals Informational Element Fear Appeals Sex Appeals Persuasive Element Humorous Appeals LO2 1-10 Developing, Executing & Evaluating an Advertising Program

National Council against Drug Abuse What is the appeal & purpose of this advertisement? LO2 1-11 Developing, Executing & Evaluating an Advertising Program

Developing the Advertising Program Creating the Actual Message Designing the Advertisement Creating the Actual Message Celebrity Spokespeople Ideas and Artwork Cost LO2 1-12 Developing, Executing & Evaluating an Advertising Program

Developing the Advertising Program Selecting the Right Media Advertising Media Media Planning Goals Maximize Exposure Minimize Costs LO2 1-13 Developing, Executing & Evaluating an Advertising Program

FIGURE 18-1 Global advertising expenditure by category, in US$ Millions 1-14 Developing, Executing & Evaluating an Advertising Program

Developing the Advertising Program Basic Terms Selecting the Right Media Basic Terms Reach Rating Frequency Gross Rating Points (GRPs) = Reach × Frequency Cost per Thousand (CPM) LO2 1-15 Developing, Executing & Evaluating an Advertising Program

FIGURE The language of the media buyer LO2 1-16 Developing, Executing & Evaluating an Advertising Program

Marketing Dashboards LO2 What is the Best Way to reach 1,000 customers? Cost per Thousand (CPM) Impressions LO2 1-17 Developing, Executing & Evaluating an Advertising Program

FIGURE 18-2 Advertisers must consider the advantages and disadvantages of the many media alternatives LO3 1-18 Advantages & Disadvantages of Alternative Advertising Media

Developing the Advertising Program Different Media Alternatives Television LO3 1-19 Advantages & Disadvantages of Alternative Advertising Media

Developing the Advertising Program Different Media Alternatives Television Wasted Coverage Cable and satellite TV Infomercial LO3 1-20 Advantages & Disadvantages of Alternative Advertising Media

FIGURE 18-3 Household penetration of television in selected Asian countries LO3 1-21 Advantages & Disadvantages of Alternative Advertising Media

Developing the Advertising Program Different Media Alternatives Radio LO3 1-22 Advantages & Disadvantages of Alternative Advertising Media

Developing the Advertising Program Different Media Alternatives Magazines LO3 1-23 Advantages & Disadvantages of Alternative Advertising Media

Developing the Advertising Program Newspapers Different Media Alternatives Newspapers Production and Distribution Costs Online Newspapers Free Tabloids LO3 1-24 Advantages & Disadvantages of Alternative Advertising Media

Developing the Advertising Program Different Media Alternatives Yellow Pages LO3 1-25 Advantages & Disadvantages of Alternative Advertising Media

Developing the Advertising Program Internet Different Media Alternatives Internet Click Fraud Rich Media Banner Ads Permission-Based Advertising LO3 1-26 Advantages & Disadvantages of Alternative Advertising Media

Developing the Advertising Program Different Media Alternatives Outdoor Billboards Transit Advertising LO3 1-27 Advantages & Disadvantages of Alternative Advertising Media

Developing the Advertising Program Different Media Alternatives Other Media Placed-Based Media Selection Criteria LO3 1-28 Advantages & Disadvantages of Alternative Advertising Media

Developing the Advertising Program Scheduling the Advertising Factors to Consider Buyer Turnover Purchase Frequency Forgetting Rate LO3 1-29 Advantages & Disadvantages of Alternative Advertising Media

Developing the Advertising Program Approaches Scheduling the Advertising Approaches Continuous (Steady) Schedule Flighting (Intermittent) Schedule Pulse (Burst) Schedule LO3 1-30 Advantages & Disadvantages of Alternative Advertising Media

Making Responsible Decisions: Ethics Who is Responsible for Click Fraud? For further discussion, refer to the textbook. 24/7 Real Media assesses the effectiveness of a website by monitoring CTR or Click-Through Rates LO3 1-31 Advantages & Disadvantages of Alternative Advertising Media

Executing the Advertising Program Pretesting the Advertising Pretests Portfolio Tests Jury Tests Theater Tests LO3 1-32 Advantages & Disadvantages of Alternative Advertising Media

Executing the Advertising Program Carrying out the Program Full-Service Agency Limited-Service Agencies In-House Agencies LO3 1-33 Advantages & Disadvantages of Alternative Advertising Media

FIGURE 18-5 Alternative structures of advertising agencies used to carry out the advertising program LO3 1-34 Advantages & Disadvantages of Alternative Advertising Media

Evaluating the Advertising Program Posttesting the Advertising Posttests Aided Recall Unaided Recall Noted Attitude Tests Post-tests are a way of determining if an advertisement has achieved its goals. Post-tests occur after the advert are shown to viewers. Seen-Associated Inquiry Tests Read Most Sales Tests LO3 1-35 Advantages & Disadvantages of Alternative Advertising Media

FIGURE 18-6 Sales promotions can be used to achieve many objectives LO4 1-36 Strengths & Weaknesses of Consumer- and Trade- Oriented Sales Promotions

Consumer-Oriented Sales Promotion Consumer-Oriented Sales Promotion Coupons LO4 1-37 Strengths & Weaknesses of Consumer- and Trade- Oriented Sales Promotions

Consumer-Oriented Sales Promotion Deals LO4 1-38 Strengths & Weaknesses of Consumer- and Trade- Oriented Sales Promotions

Consumer-Oriented Sales Promotion Premiums Self-Liquidating LO4 1-39 Strengths & Weaknesses of Consumer- and Trade- Oriented Sales Promotions

Consumer-Oriented Sales Promotion Contests LO4 1-40 Strengths & Weaknesses of Consumer- and Trade- Oriented Sales Promotions

Consumer-Oriented Sales Promotion Sweepstakes Instant-win game “Experience” LO4 1-41 Strengths & Weaknesses of Consumer- and Trade- Oriented Sales Promotions

Consumer-Oriented Sales Promotion Samples LO4 1-42 Strengths & Weaknesses of Consumer- and Trade- Oriented Sales Promotions

Consumer-Oriented Sales Promotion Loyalty Programs LO4 1-43 Strengths & Weaknesses of Consumer- and Trade- Oriented Sales Promotions

Consumer-Oriented Sales Promotion Point-of-Purchase Displays LO4 1-44 Strengths & Weaknesses of Consumer- and Trade- Oriented Sales Promotions

Consumer-Oriented Sales Promotion Rebates LO4 1-45 Strengths & Weaknesses of Consumer- and Trade- Oriented Sales Promotions

Consumer-Oriented Sales Promotion Product Placement LO4 1-46 Strengths & Weaknesses of Consumer- and Trade- Oriented Sales Promotions

Trade-Oriented Sales Promotion Allowances and Discounts Merchandise Allowance Case Allowance Free Goods Trade-Oriented Sales Promotions are generally for B2B companies aiming to reach other businesses Finance Allowance Floor Stock Protection Freight Allowance LO4 1-47 Strengths & Weaknesses of Consumer- and Trade- Oriented Sales Promotions

Cooperative Advertising Sales Promotion Trade-Oriented Sales Promotion Cooperative Advertising Training of Distributors’ Salesforces LO4 1-48 Strengths & Weaknesses of Consumer- and Trade- Oriented Sales Promotions

Public Service Announcements (PSAs) Public Relations Publicity Tools Public Relations Publicity Tools News Release Public Service Announcements (PSAs) News Conference LO5 1-49 Public Relations: an Important form of Communication

Increasing the Value of Promotion Publicity Tools Building Long-Term Relationships with Promotion Self-Regulation LO5 1-50 Public Relations: an Important form of Communication