1. Advertising, Sales Promotion, & Public Relations Marketing Chapter 16

2. Advertising Paid, non personal communication through various media Growth in the number of multinational corporations

3. Product & Institutional Ad 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. Creating an Advertisement (cont.) Major elements of a print ad: Headline Illustration - 65% Body copy Signature Company name, phone, slogan, trademark

11. 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.

12. 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

13. 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

14. Circuit CityNewspaperInsertA 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.

15. Magazines Advantages - selectivity of target markets, quality reproduction, long life, and prestige Disadvantages - high priced and long lead time

16. Figure 16.8 – Targeting Different Consumer Interests through Magazine Advertising

17. Success MagazineMagazine’s Ad Targeting Entrepreneurs Copyright © 2001 by Harcourt, Inc. All rights reserved.

18. 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.

19. 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

20. Interactive Media Enhances two way communication & encourages audience participation E-mail – cheaper than direct mail Web sites Kiosks Internet Commercial on-line services

21. 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

22. Media Scheduling Reach - # of different people exposed to ad Frequency - # of times the people are exposed Reach X Frequency = gross rating point

23. Advertising Agencies Marketing specialist firm used to assist advertisers in planning & implementing advertising programs Paid by media commission

24. 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

25. 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

26. 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