Presentation is loading. Please wait.

Presentation is loading. Please wait.

Essentials of Marketing Chapter 15 Advertising, Publicity, and Sales Promotion McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All.

Similar presentations


Presentation on theme: "Essentials of Marketing Chapter 15 Advertising, Publicity, and Sales Promotion McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All."— Presentation transcript:

1 Essentials of Marketing Chapter 15 Advertising, Publicity, and Sales Promotion McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

2 At the end of this presentation, you should be able to: 1.Understand why a marketing manager sets specific objectives to guide the advertising effort. 2.Understand when the various kinds of advertising are needed. 3.Understand how to choose the “best” medium. 4.Understand the main ways that advertising on the Internet differs from advertising in other media. 5.Understand how to plan the "best" message—that is, the copy thrust. 15–2

3 At the end of this presentation, you should be able to: 6.Understand what advertising agencies do. 7.Understand how to advertise legally. 8.Understand the importance of and different types of publicity. 9.Understand the importance and nature of sales promotion. 10.Know the advantages and limitations of different types of sales promotion. 11.Understand important new terms. 15–3

4 Marketing Strategy Planning Process 15–4

5 Strategy Planning, Advertising, Publicity, and Sales Promotion (Exhibit 15-1) CH 15: Advertising, Publicity & Sales Promotion Advertising spending Advertising strategy decisions Advertising & the law Sales promotion decisions CH 14: Personal Selling and Customer Service CH 13: Promotion Intro. To Integrated Marketing Communications Publicity & communic- ation 15–5

6 The Decision to Position a New Product 15–6

7 International Dimensions Are Important 15–7

8 Advertising Spending as Percent of Sales for Illustrative Product Categories (Exhibit 15-2a) 15–8

9 Retail Ad Spending (Exhibit 15-2b) 15–9

10 Setting Ad Objectives Is a Strategy Decision Obtain Outlets Ongoing Contact Support Sales Force Get Immediate Action Introduce New Products AdvertisingObjectives Should be Specific Maintain Relationships Position Brands 15–10

11 What’s the Advertising Objective? 15–11

12 Objectives Guide Implementation (Exhibit 15-3) Teaser campaigns Pioneering ads Jingles/slogans Viral advertising Announcements Awareness Informative or descriptive ads Image/celebrity ads Search ads ads Demonstration Interest Competitive ads Persuasive copy Comparative ads Testimonials Evaluation and Trial Reminder ads Informative “why” ads Confirmation Direct-action retail ads Point-of-purchase ads Price deal offers Decision 15–12

13 Coordinating advertising across the channel to achieve objectives Cooperative Advertising Cooperative Advertising Allowances Advertising Allowances Key Issues Key Issues Ethical Concerns 15–13

14 Objectives Determine the Kinds of Advertising (Exhibit 15-4) Institutional Advertising Pioneering Advertising Product Advertising Competitive Advertising Reminder Advertising Types of Advertising 15–14

15 Competitive Advertising Emphasizes Selective Demand 15–15

16 A Competitive Ad That’s Comparative 15–16

17 Reminder Advertising Reinforces a Favorable Relationship 15–17

18 Institutional Advertising – Remember Our Name Sheds Favorable Light Connects Divisions of a Company Advocates Causes and Ideas 15–18

19 Interactive Exercise: Types of Advertising 15–19

20 Checking Your Knowledge A television ad for Target encourages consumers to go to their nearest Target store for a big end-of-season sale coming up in two weeks. This type of advertising is: A. pioneering. B. reminder. C. indirect competitive. D. direct competitive. E. institutional. 15–20

21 Checking Your Knowledge Community Bank sends an advertisement via direct mail to several thousand customers, quoting special low financing rates on new vehicles for a limited time only. The ad names some other financial institutions and shows their respective loan rates. Community Bank promises to beat any rate offered for a comparable term. This type of advertising is: A. pioneering. B. indirect competitive. C. comparative. D. reminder. E. institutional. 15–21

22 Choosing the “Best” Medium – How To Deliver the Message Promotion Objectives Target Market Characteristics Funds Available Nature of the Media 15–22

23 Comparing Advertising Media (Exhibit 15-5) Media 2010 Ad spending. (billions) 2010 Ad spending. (billions) 2010 % of Total Spend Advantages Disadvantages Television & cable Demonstrations, good attention, wide reach, cable targets Expensive in total, “clutter” Direct mail Selected audience, flexible, can personalize Relatively costly per contact, “junk mail,” hard to retain attention News- paper Flexible, timely, local market “Clutter” ads compete for attention, poor photo reproduction Radio Wide reach, low cost segmented audience Wide reach, low cost segmented audience Weak attention, many different rates, short exposure 15–23

24 Comparing Advertising Media (Exhibit 15-5) Media 2010 Ad spending. (billions) 2010 Ad spending. (billions) 2010 % of Total Spend Advantages Disadvantages Yellow pages Reaches local customers ready to buy, inexpensive Many competitors listed in same place, hard to differentiate Magazine Very targeted, good detail, good “pass along” Inflexible, long lead times, cost can be high Internet Ads link to more detailed site, some “pay for results,” easy to track results Hard to compare costs with other media Outdoor & Cinema Captive audience Glance medium; younger audience Glance medium; younger audience 15–24

25 An Emphasis on Targeting Specialized Media Are Gaining Specialized Media Are Gaining Traditional Media Are More Targeted Traditional Media Are More Targeted Direct Mail Has Grown Direct Mail Has Grown “Must Buys” May Use Up Funds “Must Buys” May Use Up Funds Key Issues Key Issues 15–25

26 Interactive Exercise: Promotion Planning 15–26

27 Advertising on the Internet Click Fraud Pay per click advertising Pay per click advertising Behavioral Targeting Behavioral Targeting Key Issues Key Issues Direct Response Desired Direct Response Desired 15–27

28 Planning the Best Message—What to Communicate 15–28

29 Planning the Best Message Example 15–29

30 AIDA – Attention, Interest, Desire, and Action Obtain Action Arouse Desire Hold Interest Get Attention Can Global Messages Work? 15–30

31 A Unique Selling Proposition 15–31

32 Checking Your Knowledge A famous athlete is featured in a commercial for a pain- relieving rub that can help soothe muscle aches and pains. He says, “If it works for me, it’ll surely work for you.” This testimonial is mainly aimed at the _________ stage of the AIDA model. A. attention B. interest C. desire D. action E. confirmation 15–32

33 Advertising Agencies Often Do the Work (Exhibit 15-6) Organi- zation Organi- zation Largest agency networks HQ location 2009 revenue billion 2009 revenue billion Select clients Omnicon Group BBDO Worldwide, DDB Worldwide, TBWA Worldwide New York Apple, Bud, ExxonMobil, FedEx, GE, Pepsi, Visa WPP Group Grey Group, J WT, Oglivy & Mather, Y & R Dublin Altria, American Express, Ford, GlaxcoSmithKline, IBM, P&G Inter- public DraftFCB, Lowe, McCann Worldgroup New York 6.03 Freecreditreport.com, Geico, Microsoft, Yum Brands, Unilever, Verizon 15–33

34 Advertising Agencies Often Do the Work (Exhibit 15-6) Organi- zation Organi- zation Largest agencies HQ location 2009 revenue billions 2009 revenue billions Select clients Publicis Groupe Leo Burnett Worldwide, Publicis, Saatchi & Saatchi, Vivaki Paris 6.29 British Airways, Coca- Cola, Disney, Kellogg’s, L’Oreal, McDonald’s 15–34

35 Measuring Advertising Effectiveness is Not Easy Research and Testing May Improve Odds Consider the Total Mix Hindsight May Lead to Foresight 15–35

36 How to Avoid Unfair Advertising Standards Are Changing Standards Are Changing Government May Say What’s Fair Government May Say What’s Fair Support for Claims Is Fuzzy Support for Claims Is Fuzzy FTC Controls Unfair Practices FTC Controls Unfair Practices 15–36

37 Types of Publicity (Exhibit 15-7) How does the customer obtain the communication? Through popular and trade press "Found" through search, pass-along, or experience "Found" through search, pass-along, or experience Targeting commercial press Press kits Online media room Posting press releases Targeting commercial press Press kits Online media room Posting press releases 15–37

38 How does the customer obtain the communication? Through popular and trade press "Found" through search, pass-along, or experience "Found" through search, pass-along, or experience Targeting consumers Useful web site content Video or podcasts Games Targeting consumers Useful web site content Video or podcasts Games One-way communication Interactive communication Targeting organizations Commercial white papers Case studies Webinars Targeting organizations Commercial white papers Case studies Webinars Types of Publicity (Exhibit 15-7) 15–38

39 How does the customer obtain the communication? Through popular and trade press "Found" through search, pass-along, or experience "Found" through search, pass-along, or experience Targeting consumers Blogs & social media Customer reviews & online communities Targeting consumers Blogs & social media Customer reviews & online communities One-way communication Interactive communication Targeting organizations Social media Blogs Online communities Targeting organizations Social media Blogs Online communities Types of Publicity (Exhibit 15-7) 15–39

40 Examples of Different Types of Publicity and Different Promotion Objectives (Exhibit 15-8) Getting attention & holding interest Viral videos Direct-to-consumer press releases Articles in the press Managing ongoing customer relationships Social media like Facebook Blogs Online communities Podcasts, webcasts, webinars Arousing desire & obtaining action Customer reviews Case studies Webinars Developing a desired positioning Viral videos Games Branded services Commercial white papers 15–40

41 Sales Promotion: Do Something Different to Stimulate Change (Exhibit 15-9) 15–41

42 Problems in Managing Sales Promotion Hard to Manage Need For Alternatives Erodes Brand Loyalty Not For Amateurs Key Problems 15–42

43 Different Types of Sales Promotion for Different Targets 15–43

44 You should now be able to: 1.Understand why a marketing manager sets specific objectives to guide the advertising effort. 2.Understand when the various kinds of advertising are needed. 3.Understand how to choose the “best” medium. 4.Understand the main ways that advertising on the Internet differs from advertising in other media. 5.Understand how to plan the "best" message—that is, the copy thrust. 15–44

45 You should now be able to: 6.Understand what advertising agencies do. 7.Understand how to advertise legally. 8.Understand the importance and nature of sales promotion. 9.Understand the importance of and different types of publicity. 10.Know the advantages and limitations of different types of sales promotion. 11.Understand important new terms. 15–45

46 Key Terms  Advertising allowances  Cooperative advertising  Product advertising  Institutional advertising  Pioneering advertising  Competitive advertising  Direct type advertising  Indirect type advertising  Comparative advertising  Reminder advertising  Advertising allowances  Copy thrust  Advertising agencies  Corrective advertising 15–46


Download ppt "Essentials of Marketing Chapter 15 Advertising, Publicity, and Sales Promotion McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All."

Similar presentations


Ads by Google