1. McGraw-Hill/Irwin
Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

2. 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

3. 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

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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

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

12. 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

13. 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

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

15. 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

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

17. 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

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

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

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

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

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

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

24. 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

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

26. 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

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

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

29. 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

30. 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

31. 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

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

33. 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

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

35. 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

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

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

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

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

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

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

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

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

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

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

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

47. 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

48. 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

49. 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

50. 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