1. © 2004 The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin

2. Exchanges perception, satisfaction What is Advertising? Usually paid for Usually persuasive in nature About products From identified sponsors The structured and composed nonpersonal communication Advertising Through various media

3. Exchanges perception, satisfaction What is Marketing? Process of planning and executing The conception, pricing, distribution and promotion Of ideas, goods, and services To create exchanges that satisfy Marketing Perceived needs, wants, and objectives

4. Who should be the targets Advertising and the Marketing Process Where advertising should appear What media should be used What the ads should accomplish Marketing Strategy Determines

5. Current Regulatory Issues Affecting U.S. Advertisers Tobacco advertising Advertising to children Consumer Privacy

6. Federal Regulation of Advertising in North America Federal Trade Commission (FTC) http://www.ftc.gov/ Defining deception Defining unfairness Comparative advertising Investigating violations Remedies for unfair or deceptive advertising Consent decree Cease-and-desist order Corrective advertising

7. The Consumer Perception Process Ad/commercial Promotion News item Product/store Price tag Conversion Physical data (stimuli) Sight Hearing Touch Taste Smell Physiological screens (sensory) Personality Self-concept Attitudes Beliefs Habits Psychological screens (emotional) Awareness Non- awareness Information Needs Wants Mental files (memory) Feedback

8. The Market Segmentation Process Market Segmentation 1. Identify people with shared needs and characteristics 2. Aggregate these groups into market segments according to their mutual interest in the product’s utility

9. Segmenting the Consumer Market Behavioristic Segmentation Geographic Segmentation Demographic Segmentation Psychographic Segmentation

10. Exchanges perception, satisfaction The Target Marketing Process Target Market Selection The Marketing Mix: Matching products to markets Product concept Marketing mix Product Price Distribution Communication

11. Exchanges perception, satisfaction Advertising and the Product Element Product life cycles Product classifications

12. Exchanges perception, satisfaction Advertising and the Product Element Product life cycles Product positioning Product classifications Identification Product packaging Containment, protection, convenience Consumer Appeal Economy

13. Exchanges perception, satisfaction Advertising and the Price Element Key factors influencing price Market demand Production and distribution costs Competition Corporate objectives and strategies Variable Influences

14. Exchanges perception, satisfaction Advertising and the Distribution (Place) Element Direct distribution Network marketing Indirect distribution Intensive distribution Selective distribution Exclusive distribution Vertical marketing systems

15. Exchanges perception, satisfaction Advertising and the Communication (Promotion) Element Personal selling Advertising Direct marketing Public relations Collateral materials Sales promotion

16. The Marketing Plan The importance of marketing planning Marketing plan Effect of the marketing plan on advertising Top-down marketing Situation analysis Marketing objectives Marketing strategy Marketing tactics

17. The Advertising Plan Reviewing the marketing plan SWOT analysis Setting advertising objectives Understanding what advertising can do The advertising pyramid The old model vs. the new

18. Advertising Strategy and the Creative Mix Creative Mix Target audience Product concept Communications media Advertising media

19. Importance of Relationship Marketing and IMC Advertising must work with Direct marketing Sales promotion Personal selling

20. Exchanges perception, satisfaction Sales Promotion Strategies and Tactics Push strategies Pull strategies Trade promotions Trade advertising Consumer sales promotions Consumer advertising

21. The Difference Between Advertising and Public Relations Public RelationsAdvertising Free mediaPaid media Not openly sponsored Openly sponsored Imprecise placement Precise placement

22. Writing the Creative Brief (Copy Platform) Who? Behavioristic Geographic Demographic Psychographic

23. Writing the Creative Brief (Copy Platform) Why? Emotional Appeals Emotional Appeals Rational Appeals Rational Appeals

24. Writing the Creative Brief (Copy Platform) What? Special product features? Claim support? Product positioning Product personality or image Perceived strengths and weaknesses

25. Writing the Creative Brief (Copy Platform) Where and When? What style, approach, and tone?

26. Pros and Cons of Magazine Advertising Pros Flexibility Color Authority / believability Permanence Prestige Cost efficiency Pass-along readership Audience selectivity Merchandizing assistance

27. Pros and Cons of Magazine Advertising Cons Long lead time Heavy advertising competition Lack of immediacy Shallow geographic coverage Inability to delivery mass audiences at a low price Inability to deliver high frequency High cost per thousand Declining circulations

28. Using Magazines in the Creative Mix Special possibilities with magazines Bleed Cover position Junior unit Island halves Insert Gatefold Custom magazines

29. Exchanges perception, satisfaction How Magazines are Categorized Content Consumer magazines Farm publications Business magazines

30. Exchanges perception, satisfaction How Magazines are Categorized Content Geography Local RegionalRegional More More National

31. Exchanges perception, satisfaction How Magazines are Categorized Content Geography Large Size Flat Standard Small

32. Exchanges perception, satisfaction Using Newspapers in the Creative Mix Who uses newspapers? Read a daily newspaper 56% Adults read every section 60% Newspapers sold daily 56 million Spent on newspaper ads in 1999 $46.3 billion

33. Pros and Cons of Newspaper Advertising Pros MassMass medium LocalLocal mediummedium Comprehensive scope Geographic selectivity Timeliness Selective attention Creative flexibility Credibility An active medium A permanent record Reasonable cost

34. Pros and Cons of Newspaper Advertising Cons Lack of control Overlapping circulation Lack of selectivity Short life span Low production quality Clutter

35. Exchanges perception, satisfaction How Newspapers are Categorized Frequency of delivery Physical size DailyWeekly Standard size Standard advertising unit Column inch

36. Exchanges perception, satisfaction How Newspapers are Categorized Type of audience Other types of newspaperstypesof Sunday supplements supplements Independent shopping guides shoppingguides

37. Types of Newspaper Advertising Display advertising Classified advertising Public notices Reading notice Classified display ads Co-op programs Preprinted inserts

38. The Medium of Television Broadcast TV VHF UHF Cable TV TV audience trends Use of television in IMC

39. Pros and Cons of Broadcast TV Advertising Pros Mass coverage Low cost Some selectivity Impact Creativity Prestige Social dominance

40. Pros and Cons of Broadcast TV Advertising Cons Brevity Clutter Zipping and zapping High production cost High air-time cost Limited selectivity

41. Exchanges perception, satisfaction TV Audience Measurement Rating services: The book Cable ratings Neilsen SMRB Mediamark Defining television markets Designated market areas (DMAs)

42. The Medium of Radio Who uses radio? The use of radio in IMC Imagery Transfer Radio programming and audiences

43. The Medium of Radio Radio programming and audiences Programming formats

44. Digital Interactive Media

45. The Internet Audience Who uses the Net? How people access the Net Narrowband Cable Modem Broadband DSL DirecPCWebTV

46. Exchanges perception, satisfaction Types of Internet Advertising Websites Banners and Buttons Web page Banner Button Rich media ad Interstitial Rich mail

47. Pros and Cons of Internet Advertising Pros Interactive Medium Enormous audience Immediate response Selective targeting Proximity to purchase In-depth information Rapidly growing industry Affluent market Reaches BTB users Advertorials Virtual storefront

48. Pros and Cons of Internet Advertising Cons Security and privacy Global marketing limits Untested medium Targeting costs Slow downloads

49. Exchanges perception, satisfaction Measuring the Internet Audience Seeking standardization Ad requestClick rate Promise of enhanced tracking Cookies

50. Exchanges perception, satisfaction Global Impact of the Internet Online ad spending: $71 billion

51. Direct Mail Advertising: The Addressable Medium Growth of direct mail Types of direct mail Using direct mail in the media mix

52. Pros and Cons of Direct-Mail Advertising Pros Selectivity Coverage and reach Flexibility Control Personal Impact Exclusivity Response Testability

53. Pros and Cons of Direct-Mail Advertising Cons Selectivity problems Negative attitudes Environmental concerns High cost per exposure Delivery problems Lack of content support

54. Buying Direct Mail Advertising Acquiring direct-mail lists House lists Mail-response lists Compiled lists Production and handling Letter shop Distribution

55. Chapter 18 Using Out-of-Home, Exhibitive, and Supplementary Media Presents the factors advertisers consider when evaluating various out-of-home, exhibitive, and supplementary media

56. Out-of-Home Media

57. Outdoor Advertising 2002: $5.2 billion Directional medium for motorists Enhances awareness of and reinforces the advertiser’s core message

58. Regulation of Outdoor Advertising Highway Beautification Act 1965 Maine Vermont Hawaii Alaska

59. Transit Advertising Types of transit advertising Transit shelters Terminal posters Inside and outside cards and posters Taxicab exteriors

60. Mobile Billboard Other Out-of-Home Electronic Signs Parking meter and public phone

61. Exhibitive Media Product Packaging Environmental issues Government impact Package manufacturing

62. Supplementary Media Advertising Specialty Premium

63. Directories and Yellow Pages

64. Product Placement Emerging Media Videotapes Cinema advertising ATMs