ch.16
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Advertising, Sales Promotion, & Public Relations
Marketing
Chapter 16
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AdvertisingPaid, non personal communication through
various media
Growth in the number of multinational corporations
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Types of Advertising
Product• non personal selling of a good or service
Institutional• promoting a concept, an idea, philosophy, or
the goodwill of an industry, company, organization, person, or government agency.
• It is closely related to public relations
Product & Institutional Ad
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Advertising Objectives Informative
• Develop initial demand for a good Persuasive
• Develop demand for an existing good• Used during the growth and early part of the
maturity stages Reminder
• Reinforce previous promotion• Keep the name in front of the public
A Reminder Ad
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Advertising Strategies
Comparative• Direct or indirect promotional
comparisons with competitive
brands
Celebrity testimonials• Improve product recognition and credibility• Spokesperson must be credible source of information
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Advertising Strategies (cont.)
Retail• All advertising by stores that sell directly to the
consumer• Cooperative
• Sharing advertising costs between the retailer• Usually half and half
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Advertising Strategies (cont.)
Interactive• Web page• Banner ads on web (click here)• Video screens on grocery carts• Changing electronic signs on taxis• Kiosks• Text Messaging
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Creating an Advertisement
Research• To create better ads
Objectives Message
• Customer benefits; meaningful, believable, distinctive appeal
• Ad campaign – combines the ad with a single theme via different media
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Creating an Advertisement (cont)
Developing & Preparing Ads
An advertisement should: gain attention and interest inform and/or persuade eventually lead to buying action
• Often neglected
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Creating an Advertisement (cont.)
Major elements of a print ad:
Headline Illustration - 65% Body copy Signature
• Company name, phone, slogan, trademark
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Media Selection Television (network, national, local and cable)
• Advantages - mass coverage, repetition, flexibility, and prestige
• Disadvantages - high cost and fragmentation of the message
• Objective of media selection- to reach the target audience without advertising beyond the identifiable limits of the potential market.
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Media Selection (cont.)
Radio (network, national, and local)• Advantages - immediacy, low cost,
flexibility, practical and low-cost audience selection, and mobility
• Disadvantages - fragmentation of the message, temporary nature of the message, and less research information that for television
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Newspapers (largest advertising medium)• Advantages - flexibility, community
prestige, intensive coverage, reader control of exposure, coordination with national advertising
• Disadvantages - short life span, hasty reading, and poor reproduction
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Circuit CityNewspaperInsert
A Free Standing Insert From Circuit City -- One of the Top Five Newspaper Advertisers in the U.S.
Copyright © 2001 by Harcourt, Inc. All rights reserved.
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Magazines • Advantages - selectivity of target markets,
quality reproduction, long life, and prestige• Disadvantages - high priced and long lead time
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Figure 16.8 – Targeting Different Consumer Interests through Magazine Advertising
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Success MagazineMagazine’s Ad Targeting Entrepreneurs
Copyright © 2001 by Harcourt, Inc. All rights reserved.
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Direct Mail - (sales letters, postcards, leaflets,
folders, broadsides, booklets, catalogs, and house organs)• Advantages - selectivity, intensive coverage,
speed, format inflexibility, complete information, and personalized
• Disadvantages - high cost, dependence on the quality of the mailing list, and people’s annoyance with it.
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Outdoor advertising (posters, billboards,painted bulletins or displays, and electric spectaculars)• Advantages - communication of quick and
simple ideas, and repetition• Good in high traffic areas
• Disadvantages - brevity and public concern
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Interactive MediaEnhances two way communication & encourages
audience participation
E-mail – cheaper than direct mail Web sites Kiosks Internet Commercial on-line services
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Other Media
Transit advertising – subways, buses, taxis, car wrapping
Cinema advertising – growing T-shirts, ball fields, floors Directory advertising - Advertisement on hot air balloons, blimps,
banners behind airplanes
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Media Scheduling
Reach - # of different people exposed to ad Frequency - # of times the people are exposedReach X Frequency = gross rating point
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Advertising Agencies
Marketing specialist firm used to assist advertisers in planning & implementing advertising programs• Paid by media commission
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Public Relations
Refers to the firm’s communications relationships with customers, suppliers,
stockholders, employees, the government, and the general public.
Publicity is not paid for by an identified sponsor
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Measuring Effectiveness
Pre-testing• Assess the ads effectiveness before it appears
Post-testing• Less effective than pre-testing because of cost
efficiency• Unaided recall• Split runs
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Ethics in Non-Personal Selling
Cookies• Text files that are automatically downloaded
when a site is visited Puffery & Deception
• Exaggerated claims of a product’s superiority Unethical Sales Promotion & PR
• Not fulfilling rebate offers• Bribery