13-1 It’s an Ad Ad Ad Ad World Advertising is nonpersonal communication paid for by an identified sponsor using mass media to persuade, inform, and remind an audience.

13-2 Types of Advertising Product advertising - message focuses on a specific product Institutional advertising - message focuses on activities, personality, or point of view of a company –advocacy advertising –public service advertisements (PSAs)

13-3 Purposes of Product Advertising To educate people about a new product and what it does To emphasize a brand’s features and try to convince the target market to choose it over other options To ensure that people won’t forget about a well-established product

13-4 Product Advertising

13-5 Who Creates Advertising? An advertising campaign is a coordinated, comprehensive plan that carries out promotion objectives and results in a series of advertisements placed in media over a period of time Agencies –limited-service –full-service

13-6 Largest Ad Agencies J. Walter Thompson Leo Burnett Worldwide McCann-Erickson Worldwide BBDO Worldwide Grey Worldwide

13-7 Leo Burnett

13-8 Developing the Campaign

13-9 Step 1: Identifying the Target Market?

13-10 Click here Establish Advertising Objectives Message objectives Budget objectives

13-11 Advertising Appeals Reasons Why (USP) Comparative Advertising Demonstration Testimonial Slice-of-Life Lifestyle Fear Sex Humor Slogans and Jingles

13-12 USP Creative Strategy USP clearly communicates the reason a product can satisfy a need

13-13 Step 4: Pretest What Will Be Said Copy testing measures ad effectiveness –Concept testing –Test commercials –Finished testing

13-14 Step 5: Choose the Media Media planning is a problem-solving process for getting a message to a target audience in the most effective fashion –Where to say it –When to say it

13-15 Changes in Media Usage

13-16 Television Pros Creative and flexible Prestigious High impact messages Network TV is cost effective for reaching mass audience Cable TV is good for reaching targeted group Cons Quickly forgotten Requires frequent repetition Increasingly fragmented audiences High costs on an absolute basis Shorter ads result in increased clutter

13-17 Radio Pros Good for selective targeting Heard out of home Relatively low cost Can be modified quickly Uses listener imagination Cons Listeners may not pay full attention Small audiences mean ads must be repeated frequently Not appropriate for products requiring demonstration

13-18 Newspapers Pros Wide exposure and extensive market coverage Flexible format permits use of color, different sizes and editions Useful for comparison shopping Local retailers can tie in with national ads Cons Most don’t spend much time reading newspapers Low readership among teens and young adults Short life span Very cluttered

13-19 Magazines Pros Narrowly targeted audiences by specialized magazines High credibility and interest level provide good ad environment Long life span and pass along rate Excellent visual quality Cons With exception of direct mail, the most expensive form Long deadlines Must use several magazines to reach target

13-20 Outdoor Pros Very high reach Low cost Good for supplementing other media Cons Hard to communicate complex messages Cannot demonstrate product effectiveness Controversial and disliked

13-21 Out-of-Home Media

13-22 Place-based Media

13-23 Internet Advertising Banners Buttons Search engine and directory listings Pop-up ads –permission marketing –spamming

13-24

13-25 Media Scheduling Terms_1 Impressions - the number of people who will be exposed to a message placed in one or more media vehicles Reach - the percentage of the target market exposed to the media vehicle Frequency - the average number of times a person in the target group will be exposed to the vehicle

13-26 Media Scheduling Terms_2 Gross Rating Points (GRPs) - reach * frequency Cost per Thousand (CPM) - compares the relative cost effectiveness of different media vehicles that have different exposure rates; it reflects the cost to deliver a message to 1000 people

13-27 Media Scheduling: How Often? Continuous - steady stream throughout year Pulsing - varies amount of advertising based on when product is in demand (e.g., suntan lotion) Flighting - advertising appears in short, intense bursts alternative with period of little to no activity

13-28 “1984” - Apple

13-29 Evaluating Advertising Posttesting means conducting research on consumers’ responses to advertising messages they have seen or heard –unaided recall –aided recall –attitudinal measures

13-30 Public Relations Attempts to influence the attitudes and perceptions of consumers, stockholders, and other stakeholders toward companies, brands, politicians, celebrities, not-for-profit organizations Do something good, then talk about it

13-31 Objectives of Public Relations Introducing new products to manufacturers Introducing new products to consumers Influencing government legislation Enhancing the image of a city, region, or country Calling attention to a firm’s involvement with the community

13-32 Planning a PR Campaign Develop Objectives Execute the PR Campaign Evaluate the Campaign

13-33 PR Activities Press Releases Internal PR Lobbying Speech writing Corporate identity Media relations Sponsorships Special events Advice and counsel

13-34 Press Release Types Timely topics Research project stories Consumer information

13-35 Press Releases Accessing recent press releases – press room on the web

13-36 Oscar Mayer

13-37 Sponsorships PR activities through which companies provide financial support to help fund an event in return for publicized recognition of the company’s contribution Examples: –Olympics –NASCAR

13-38 Measuring Effectiveness of PR Efforts In-house assessment Awareness and Preference Studies Counting of press clippings Impression counts Media equivalencies

13-39 Direct Marketing Any direct communication to a consumer or business recipient that is designed to generate a response in the form of an order, a request for further information, and/or a visit to a store or other place of business for purchase of a product

13-40 Forms of Direct Marketing Mail order –Catalogs –Direct mail Telemarketing Direct response television –Infomercials –Home shopping networks

13-41 M-Commerce Promotional activities transmitted over mobile phones and other mobile devices such as personal digital assistants (PDAs) –Prevalent in Europe and Asia

13-42 M-Commerce Improvements in mobile phone technology are making M- commerce more attractive