bell ringer why must goals be specific and measurable?

Bell Ringer

• Why must goals be specific and measurable?

Bell Ringer Answer

• Companies must decide what it wants to accomplish by advertising and how it will know that the goal has been met.

Agenda

• Morning Announcements /Bell Ringer– 5 min• Chapter 10.2 Lecture and Notes -30 minutes• Chapter 10.2 Activity – 35 minutes

Table of ContentsTopic Page #Promotions in Sports and Entertainment 20Virtual Business Lesson 3 Vocabulary and Questions 21Bell Ringers – 12/16 – 12/20 22Chapter 10.2 Vocabulary Words, Notes, and Marketing Math 23Virtual Business Lesson 4 Questions 24Virtual Business Lesson 5 Vocabulary 25

22 23

Chapter 10.2 Vocabulary and NotesPage 261

1. Tagline2. Media Strategy3. Reach4. Wear Out5. Frequency

Chapter 10.2 Notes7 Steps of Effective Advertising1.2.3.4.5.6.7.

Marketing Math Question$41,000/2,000,000 = …..

Bell Ringers (12/16 – 12/20)

Monday:

Tuesday:

Wednesday:

Thursday:

Friday

Learning Objectives

• List and describe the steps involved in developing effective advertising.

• Describe the use of product placement.

Opening Act

• The current model for network television is that advertisers sponsor shows and the content is basically free to the viewers.

• Advertisers make money because viewers buy the products they see advertised.

Advertising

• Advertising plays a strong role in a free-enterprise system.

• Advertising promotes competition.

7 Steps of Effective Advertising

1. Set a measurable advertising goal.2. Develop the advertising budget.3. Create an advertising theme.4. Choose the advertising media.5. Create the message.6. Develop an advertising schedule.7. Measure the effectiveness of the

advertising.

Step 1: The Goal

• A company must decide what it wants to accomplish by advertising and how it will know that the goal has been met.– Goals may be to increase sales revenue or brand

recognition by a specific percentage.

Step 2: The Budget

• Marginal Analysis Setting an advertising budget by estimating the point at which an additional dollar spend on advertising equals additional profit. Spending on advertising will continue until the marginal benefit is no longer greater than the cost.

• Fixed Sum Per Unit Based directly on the expected number of units to be sold.

• Competitive Parity Designed to maintain a similar dollar amount as the competitor. (Share of Voice)

Nike’s Marketing Budget

• http://www.msnbc.msn.com/id/21134540/vp/14945482#14945482

Step 3: The Theme

• The goal of the ad and the product or service will drive the selection of the theme.

• The theme of an ad is also known as the tagline.– A slogan that conveys the main message of the ad.

Step 3: The Theme

Step 4: The Media

• Print– Newspapers, Magazines, Plastic Bags, Billboards

• Broadcast / Cable– Radio, Television

• Internet– Pop-Ups, Banners, Facebook, etc

In-Home vs. Out-Of-Home Advertising

Step 4: The Media

• Selection of media requires an analysis of marketing information concerning the media, budget, and the audience as they relate to the product or service being advertised.

• Media Strategy – choosing the media that will bring the most effective advertising message to the targeted consumer.

• Reach – the number of people in the target market expected to receive the message through the chosen medium.

Step 4: Media

• Courier-Journal has a reach of 600,000. To include a one page color insert would be $9,918.00

• A full-page, full-color advertisement in ESPN The Magazine all year would be $232,780.

• A billboard on I-65 in Louisville, averages around $3,000 a month.

• A 30 second radio commercial on a local Louisville station is around $50 for a 30 second spot.

• Average cost of a prime time tv spot is $110,000

Step 5: The Message

• The advertising department write the copy.• The copy must be carefully crafted to motivate

the consumer to act.• A company must demonstrate new

approaches in its advertising to avoid wear out.– When advertising loses its effectiveness due to

overexposure or poor message quality.

Step 6: The Frequency

• Marketing researchers must find out the frequency of their advertisement choices.– The number of times the targeted customer is

exposed to the media.

Step 7: The Effectiveness

• Critical.• If the ad does not meet its goals, then the

costs and efforts have been wasted.

Product Placement

• There are at least three ways that product placement deals are constructed.– Fee Basis (A brand will pay for film’s producers a fee for

its product to be prominently placed.– Product Barter (Very expensive products are needed as

part of the story, the products may be provided in return for prominent display of the brand name.)

– Movie Promotion Advertising (A corporation may make an agreement with a film producer to include movie promotion in its product advertising in exchange for placement of the product in the movie).

In Your Notebook….

• A full-page, full-color ad in a major city newspaper that would run as part of the Sunday comic section costs about $41,000. The comics have a loyal readership of about 2 million readers. The same ad placed in another section of the paper costs $12,000 and has about 1 million readers. What is the approximate cost per reader for each ad?

Answer…

• $41,000 / 2,000,000 = $0.02 per reader• $12,000 / 1,000,000 = $0.01 per reader

Product Placement Example