15-1 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Promotion: Advertising

15-2 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Advertising = Involves non-personal communication with a determined message –The most visible and contentious aspect of marketing Marketing managers must decide –who is their target audience –what kind of advertising to use –how to reach customers (via which types of media) –what to say to them (the copy strategy) –who will do the work (the company’s own advertising department or an outside agency?)

15-3 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Figure 15.1 Strategy planning for advertising

15-4 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa The importance of advertising Advertising expenditure = Involves a huge amount of money –Expenditure has grown across the world –US accounts for about 50% of worldwide advertising budgets –Companies spend only a small percentage of sales on advertising –Major expense is for media time/space Work is done by relatively few people

15-5 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Setting advertising objectives Help introduce new products to target markets Help position the firm's brand or marketing mix by informing and persuading target customers or intermediaries about its benefits Help obtain desirable outlets (distribution) Provide ongoing contact with target customers Pave the way for personal selling effort Get immediate buying action Help buyers confirm purchasing decisions

15-6 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Figure 15.2 Examples of different types of advertising over adoption process stages

15-7 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Types of advertising Product advertising = Tries to sell a specific product to final users or channel members –Pioneering advertising builds primary demand –Competitive advertising builds selective demand Corporate/institutional advertising = Tries to promote an organisation's image, reputation or ideas—rather than a specific product

15-8 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Exhibit 15.1c Product advertising aims to promote a product

15-9 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Exhibit 15.2a Corporate advertising aims at creating a strong identify for the organisation - home/global/en

15-10 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Coordinating advertising efforts Vertical cooperation = Involves the cooperation of members from different levels of a distribution channel –Is common in relation to advertising decisions Advertising allowances = Price reductions given to organisations in the channel to encourage them to advertise or otherwise promote the supplier’s products locally Horizontal cooperation = Involves cooperation between several members at the same level of a distribution channel –Often occurs in relation to advertising

Major advertising media Traditional Magazines Television Newspapers Radio Outdoors Cinema entransfer/gruensessions. htm New Digital Media Internet Mobile Social Media & New Media DVD on New Digital Media Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa

15-12 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Choosing the ‘best’ advertising medium Promotional objectives Target market you need to reach Funds available Nature of the media –Who it reaches –With what frequency –At what impact –At what cost Overall fit with the rest of the marketing mix

15-13 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Radio & television – daytime/evening Source: Adapted from “Radio’s Advantage: Advertising Effectiveness Study”, Commercial Radio Australia Ltd 2006

15-14 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Table 15.2 Advantages and disadvantages of several types of media

15-15 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Table 15.2 Advantages and disadvantages of several types of media (cont.)

15-16 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Table 15.2 Advantages and disadvantages of several types of media (cont.)

15-17 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Table 15.2 Advantages and disadvantages of several types of media (cont.)

15-18 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Exhibit 15.3a To attract attention, advertisers can use bold graphics, visual tricks and attractive celebrities

Good Ads vs Bad CLASS ACTIVITY Gruen Transfer Unilever Ad – Evolution Gruen Transfer Screaming Ad What other ads can you remember as fitting into the good & bad categories and why? Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa

15-20 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Measuring advertising effectiveness Sales Direct-response advertising Pre-testing advertising Attitude research Laboratory-type devices Split runs of advertisements Customer recall

15-21 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa International aspects of advertising Legal aspects of advertising In most countries, the government takes an active role in deciding what kinds of advertising are permitted, what is considered fair and what is inappropriate Global agencies for global advertising –Many agencies are small (10 or fewer employees) –Some large agencies have merged, creating mega-agencies

15-22 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Table 15.3 Top nine advertising agency supergroups and examples of products they advertise

15-23 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Direct-response promotion = Direct communication between a seller and the individual customer using a promotion method other than face-to-face personal selling Distinctive feature –It attempts to evoke a direct, measurable response from the customer Closely tied to the use of a database to target customers Started with mail advertising, but has evolved to include other media

15-24 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Direct-response online Website –It is often part of a promotional mix –It can provide detailed information and links to outside sources of information –A viewer can respond directly by clicking to obtain more detailed information Portals –A small subset of the total number of websites account for a large percentage of the potential audience –Portals are websites that act as a gateway to the Internet Targeting can be more precise –Context marketing –Pointcasting

15-25 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Sales promotion = Promotion activities (other than advertising, publicity and personal selling) that stimulate interest, trial or purchase May be focused at –channel members –final customers or users –employees Skill may be difficult to develop inside the company –A promotion activity is often designed and used only once Sales promotion spending is increasing and exceeds advertising spending

15-26 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Table 15.4 Examples of sales promotion activities

15-27 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Figure 15.3 Some possible effects of a sales promotion on sales

15-28 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Sponsorship = An investment in cash or kind (in an event, sport, art, person or idea) in exchange for access to the commercial potential of that event, sport, art, person or idea Not a new concept –traced back to ancient Rome and gladiatorial games Sport sponsorship is by far the most intensive form Sponsors –A wide range of possible objectives –A general lack of rigorous evaluation

15-29 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Public relations and publicity Public relations (PR) –involves communicating with several interest groups—employees, shareholders, governments and political parties, as well as customers and the general public –is aimed at fostering positive publicity and may be used to counter negative publicity Publicity –comprises all word-of-mouth (negative or positive) and media coverage –There is such a thing as negative publicity (including rumours and myths)

15-30 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Public relations and publicity Brands that have been negatively impacted & how PR was used in the crisis management of the brand: –Nike: sponsorship of Tiger Woods, Lance Armstrong & Oscar Pitorius sponsors-nike-and-oakley –Gasp: say-gaspfail/ say-gaspfail/ –Qantas: grounding of aircraft fleet –Top 10 Social Media Disasters

15-31 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Public relations and publicity CLASS ACTIVITY Read the PR Case Study and answer the questions Research the recent horse meat PR disaster in the UK How has McDonalds responded to this? Why were they in a positive to use negative Pr to their advantage?

15-32 Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Marketing: Creating and Delivering Value 5e, by Quester, McGuiggan, Perreault McCarthy By Carolin Plewa Creating synergies Many tools –There is a wide array of tools in the promotional mix –There is an unlimited number of possible combinations The aim of marketers –to create synergy –to ensure that every promotional activity reinforces the desired image –For example, a sponsorship program that is not advertised is unlikely to have the same impact as one which is advertised and used for PR and sales promotions purposes