3 Traditional Support Media Purpose: To reinforce or extend a message being delivered through other mediaSigns, billboardsTransitAerialSpecialtyDirectory
4 Outdoor Signage and Billboards AdvantagesWide local exposureCaptivatingAround-the-clock exposureAddress an immediate need or desireDisadvantagesMessage limitsLocation affects impactRelatively expensiveCriticized by environmental groups
6 Aerial Ads Aerial Ads Blimps increasingly common Common at sporting eventsNetworks are in control
7 What is Vehicle Wrapping? Vehicle wrapping is a form of outdoor advertisingDigitally-generated graphics are printed on vinyl, and subsequently “wrapped” onto vehiclesHas become an international advertising medium
8 Outdoor Advertising - An Overview U.S. advertisers spent $4.8 billion on outdoor media in 1999Outdoor ads represent 2% of all advertising mediaGrowing approximately 10% per yearGrowth is faster than:Total Advertising ExpendituresGross Domestic Product (GDP)
9 The Power of the Personal Vehicle The Average Person:Spends two hours per day in a carAverages 48 miles per day on the weekendsMakes four or five trips each day125 million Americans commute to work dailyDaily trips have increased by 110% since 1970Total number of cars on the road is up over 174%Motorists travel 3.4 trillion miles each yearSource: Federal Highway AdministrationOutdoor Advertising Association of America (OAAA)
10 Wrapping for the Advertiser Advertisers approach trucking companies, dealerships, etc. to “use” their vehicle(s)Costs from $500 to $2500 to wrap an automobileThe use of vinyl technology has made the medium more cost effectiveAids in helping build awareness or maintain brand image
11 Continued . . . Global Positioning System (GPS) Satellite-based tracking systemInstalled by plugging device into cigarette lighterProvides 24-hr., three dimensional position, velocity and time informationUpdates data every four minutesIs key in determining OTS (opportunity to see)
12 Wrapping for the Consumer Companies such as Autowraps, Media Vehicles and Ads on Wheels are designed to accommodate people who would like to have their vehicle wrapped
13 Three Types of Vehicle Wrapping Continued. . .Three Types of Vehicle WrappingFull WrapCovers entire exterior, including windowsDriver is paid $450 max per monthDecal GraphicRequires only 50%exterior coverage, usually a large graphic or text imageDriver is paid $250 max per monthWindow WrapCovers two rear windows and back windshieldDriver is paid $150 max per month
14 Maintenance Takes 8 hrs for full wrap Takes 4 hrs for decal and/or window wrapInstallation takes place within 30 mile radius of driverDriver is asked to provide proof of insurance, a DMV report, and sign agreementsRequired to drive approx hours per monthMeet with field monitor for a monthly inspection, and to switch out GPS system
15 Businesses - Advantages Can provide exposure in urban areas and on the interstateAllows for outdoor advertising where no billboard space existsHave the ability to entertain, educate and informGeographic and demographic flexibilityThis form of advertising is less intrusive and annoying than other forms
16 Businesses - Disadvantages Must maintain message controlSocial ResponsibilityI.e. “Make 7…Up Yours”Cannot be used as the sole promotional toolComponent of an overall communications mix
17 Consumer - Advantages Generate extra income Low-end and high-end cars are usedSome companies are willing to donate their wrapped vehicles if motorists will drive themGreat for those with no mode of transportationSome companies sell their wrapped vehicles at special discount rates
18 Consumer - Disadvantages Too eye-catching for the open road“Sophisticated Graffiti”Could spark an onslaught of spray painting on buildings, cars and trucksDifficult to break contracts
19 Airport Advertising: Dioramas The following airport advertising info is from Yong Jun Sung & Pumsoon Park- the first and most commonly utilized- located throughout the terminals in arrivals, departures, ticketing and baggage claim areas- Wall, shelter, and king-size dioramas
20 Wraps - The most widely used form of U.S. - Applied to flat surfaces (walls, windows, and floors)- Flexible in size and shape- For short or long term campaign
21 Cylinder Showcases - Highly visible units - Display products and services- Secure setting for products such asperfume, jewelry, fashions, and ceramics
22 SkyScreens (Plasma) - Provide digital advertising and information - At high-traffic passenger cluster areas- Catch the eyes of people
23 Baggage Cart Sponsorships - Deliver total audience coverage- Message frequency
25 Message Effectiveness Traveler arrive at airport 57 minutesPrior to departureOn averageOn averagePassengers spend 93 minutes at the airportHigh recall rates for airport advertising
26 How We Measure? JFK, NY – 31,700,604 (Rank #20) 1. Overall airport trafficEx) World airport ranking by total passengers 1999Atlanta – 78,092,940 (Rank #1)JFK, NY – 31,700,604 (Rank #20)Orlando – total passengers 29,203,755 (Rank #24)2. The number of brochures or leaflets taken from displays
27 Rate examples JFK International Airport (NY) Orlando International AirportAnnual PassengerMonthly Passenger31,29,203,7552,641,7172,433,644Popular VehiclesDiorama$ 4,000$ 3,300Spectacular$ 12,000$ 9,500Exhibition Area$ 24,000$ 8,000Interactive CourtesyPhone Center$ 2,000$ 1,500SkyScreen$ 35,000$ 25,000JFK Airport (NY)Orlando Airport43” x 62”7’ x 11’16” x 10”6’ x 4’Size* per month & unit
28 Directory Advertising: CD-ROM and Web-based Directories AdvantagesHigh acceptanceHigh availabilityFinal link to purchaseDisadvantagesToo many directoriesLong lead timesLimited creativity
29 Power Struggles and Sales Promotion Sales promotion plays a key strategic role in the channel of distributionBig name brands must be supported with sales promotion and POP to get the support of retailers through self space allocation.The top 10 retailers control 43% of all packaged goods sales so they can dictate which brands get how much shelf space.Brand marketers spend $30 billion a year on sales promotion and POP to gain favored retailer treatment and to provide incentives to household consumers and business buyers.
30 Sales PromotionUsing incentives to create a perception of greater brand valueConsumer MarketInduce household consumers to purchase a firm’s brandTrade-MarketMotivate distributors, wholesalers, and retailers to stock and feature a brandBusiness BuyerCultivate buyers in large corporations who make purchase decisions
32 Sales Promotion vs. Advertising Short term demand vs. long term demandEncourage brand switching vs. brand loyaltyInduce trial use vs. encourage repeat purchasePromote price vs. promote imageImmediate results vs. long term effectsMeasurable results vs. difficult to measure
33 Importance of Sales Promotion $100 plus billion industryGrowth rate: 4-8 percentReasons for growth:Demand for accountabilityShort-term orientationConsumer response to promotionsProliferation of brandsIncreased power of retailersMedia clutter
34 Objectives for Consumer-Market Sales Promotion 1. Stimulate trial purchase2. Stimulate repeat purchases3. Stimulate larger purchases4. Introduce a new brand5. Combat or disrupt competitors6. Contribute to IMC
35 Consumer-Market Sales Promotion Techniques CouponsPrice-off dealsPremiumsContests/sweepsSamples and trialsPhone gift cardsBrand placementsRebatesFrequency programsEvent sponsorship
37 Coupons Entitles a buyer to a price reduction for a product or service AdvantagesGive a discount to price sensitive consumer while selling product at full price to othersInduce brand switchingTiming and distribution can be controlledStimulates repeat purchasesGets regular users to trade up within a brand array
38 Coupons (cont’d) Disadvantages Time of redemption cannot be controlled No way to prevent current customers from redeeming couponsCoupon programs require costly administrationFraud is a serious, chronic problem
39 Price-Off DealsOffering consumers a reduced price at point of purchase through specially marked packagesAdvantagesIs controllable by manufacturer.Affects positive price comparisons.Increases consumers’ belief in the value of a known brand.DisadvantageRetailers believe it creates inventory and pricing problems.
40 Premiums and Advertising Specialties Free or reduced price for an item with the purchase of another item.Free premiums provide item at no cost.Self-liquidating premiums require consumers to pay most of the cost of the itemAdvertising specialties:A message placed on a free, useful item
41 Contests and Sweepstakes Contests: consumers compete for prizes based on skill or ability.Sweepstakes: winners picked by chanceBoth create excitement and interestBut…Legal and regulatory requirements are complex.Consumers may focus on the game rather than the brand.Difficult to get an IBP message across in a game.
43 Samples and Trial Offers SamplingGiving a consumer an opportunity to use a brand on a trial basis with little or no riskTypes of samplingIn-store – NewspaperDoor-to-door – On-packageMail – MobileTrial offersUsed for more expensive itemsTry product for a fixed timeTrader Joes Example
44 Gift CardsManufacturers offer either for free or for purchase debit cards.With phone timeOr with preset spending limitsExamplesOffers from Sephora, and The Gap.
45 RebatesMoney back offer requiring the buyer to mail a request for money back from the manufacturer.Often tied to multiple purchases.Many consumers fail to bother sending the request.Canon example
46 Frequency Programs Also known as “continuity programs” Offer customers discounts or free products for repeat patronageCommon in the airline, travel, and restaurant businesses
47 Objectives for Promotions in the Trade Market Objectives: Use a “push” strategyPush a product into the distribution channel towards the consumerObtain initial distributionIncrease order sizeEncourage cooperation with consumer market sales promotionsIncrease store traffic
49 Business Market Sales Promotion Techniques Trade ShowsBusiness giftsPremiums and advertising specialtiesTrial offersFrequency programs
50 Trial offers are very effective in the business market. Why? Click Bar To Start Video Rewind VideoNext Slide
51 Sales Promotion, the Internet, and New Media Sampling removes risk associated with consumer trial.Internet firms use incentives to make Web sites “sticky.”Internet is used to implement sales promotions and distribute coupons.
52 Risks of Sales Promotion Creates a price orientationBorrows from future salesAlienates consumersTime and expenseLegal considerations
53 Point-of-Purchase (P-O-P) Advertising Materials used in the retail setting to attract shoppers’ attention to a brand, to convey primary product benefits, or highlight pricing information.Objectives for P-O-P AdvertisingDraw consumers’ attention to a brand in the retail setting.Maintain purchase loyalty among brand loyal users.Stimulate increased or varied usage of the brand.Stimulate trial use by users of competitive brands.
54 P-O-P Advertising and the Trade and Business Markets Product displays and information sheets encourage retailers to support one distributor or manufacturer’s brand over another.P-O-P promotions can help win precious shelf space and exposure in a retail setting.A P-O-P display is designed to draw attention to a brand, increase turnover, and possibly distribute coupons or sweepstakes entry forms.To combat losing business to online shopping, retailers are trying to enliven the retail environment, and P-O-P displays are one strategy.
55 Coordination Challenge Message coordinationMedia coordinationResearch conclusions:Short-term effects can be dramatic.Short-term effects are often not profitable.Rare for long-term effects to occur.Most power effects result from advertising and sales promotion being used together.