2. Advertising: Paid mass non-person communication

3. Product Advertisements Product advertisements: are advertisements that focus on selling a good or service and which take three forms: (1) pioneering (or informational), (2) competitive (or persuasive), and (3) reminder. 15-3

4. Dial Soap What is the type and purpose of this advertisement? 15-4

5. Institutional Advertisements Institutional advertisements: are advertisements designed to build goodwill or an image for an organization rather than promote a specific good or service. 15-5

6.  Institutional Advertisements Institutional Advertisements Advocacy Pioneering Institutional Competitive Institutional Reminder Institutional 15-6

7. Chevron and Bridgestone What is the type and purpose of each advertisement? 15-7 https://www.facebook.com/photo.php?v=461220498290&set=vb.431744650466&type=3&theater http://www.bridgestonetire.com/about/news/tv-commercials#

8. Got Milk? and U.S. Army What is the type and purpose of each advertisement? 15-8 http://milkdelivers.org/got-milk-campaign/

9. World Wide Fund, Candie’s, and Geico What is the appeal and purpose of each advertisement? 15-9 http://www.youtube.com/watch?v=kWBhP0EQ1lA http://www.geico.com/about/commercials/#.UozzWcSfjfs

10. “Use facts, not fantasy. Don’t sermonize; advertise.” “If an ad doesn’t sell, if it doesn’t ultimately ring the cash register, it is a waste of money.” Jeffrey Fox

11. Advantages: 1.Cost/contact CPM = (cost/unit)/reach X 1000 Example: Jay Leno: $51,000/ 30 sec reaches 5 million Super Bowl: $3.5 mill/ 30 sec reaches 111 million CPM for Leno= $ 10.20 CPM for SB= $ 31.50

13. Advantages: 1.Cost/contact 2.Repetition Two-Factor Theory + - Valence

14. Advantages: 1.Cost/contact 2.Repetition 3.Versatility

15. Advantages: 1.Cost/contact 2.Repetition 3.Versatility 4. Atmosphere http://www.livingroomcandidate.org/commercials/1964 http://www.livingroomcandidate.org/commercials/1984

16. Advantages: 1.Cost/contact 2.Repetition 3.Versatility 4. Atmosphere 5. Prestige

17. Prestige factor is very odd:

18. Disadvantages: 1.CostSuper Bowl is still $6-7 mill/ minute!!

19. Disadvantages: 1.Cost 2.Flexibility

20. Disadvantages: 1.Cost 2.Flexibility 3.Clutter

21. Disadvantages: 1.Cost 2.Flexibility 3.Clutter Also a problem with repetition

22. Disadvantages: 1.Cost 2.Flexibility 3.Clutter 4.Credibility “Alternative Explanation”

23. Disadvantages: 1.Cost 2.Flexibility 3.Clutter 4.Credibility “Alternative Explanation” 5.High Waste

24. Disadvantages: 1.Cost 2.Flexibility 3.Clutter 4.Credibility “Alternative Explanation” 5.High Waste 6.Lack of Action

25. Disadvantages: 1.Cost 2.Flexibility 3.Clutter 4.Credibility “Alternative Explanation” 5.High Waste 6.Lack of Action 7.Problem measuring effectiveness

26. DEVELOPING THE ADVERTISING PROGRAM 1. Identifying the Target Audience 2. Specifying the Advertising Objectives 3. Setting the Advertising Budget 15-26

27. DEVELOPING THE ADVERTISING PROGRAM 4. Designing the ads Humorous appeals Increases credibility Increases memory Increases likability 15-27

28. DEVELOPING THE ADVERTISING PROGRAM 4. Designing the ads Fear appeals Protection racket 15-28 http://www.youtube.com/watch?v=ivAx1zgdWoM

29. DEVELOPING THE ADVERTISING PROGRAM 4. Designing the ads Sex appeals Careful! 15-29 http://smallbusiness.chron.com/examples- sex-appeal-advertising-works-60861.html

30. DEVELOPING THE ADVERTISING PROGRAM 5. Selecting the right media 15-30

31. SELECTING THE RIGHT MEDIA  Basic Terms Reach Rating Frequency Gross Rating Points (GRPs) Cost per Thousand (CPM) = Reach × Frequency 15-31

32.  Factors to Consider Buyer Turnover Forgetting Rate Purchase Frequency 15-32

33. FIGURE 15-1 FIGURE 15-1 Television, direct mail, and newspapers account for more than 65% of all advertising expenditures (in $millions) 15-33

34. FIGURE 15-2 FIGURE 15-2 Advertisers must consider the advantages and disadvantages of the many media alternatives 15-34

35.  Television Out-of-Home TV Online TV (OTV) 15-35

36.  Television Wasted Coverage Cable and Satellite TV Infomercials 15-36

37. Regional Issues  Magazines 15-37

38.  Radio Satellite Radio Drive Times 15-38

39.  Newspapers Falling Circulation & Ad Revenue New Types of News Organizations Online and Mobile 15-39

40.  Yellow Pages 15-40

41. Paid Search Rich Media  Internet Banner/Display Ads 15-41

42.  Outdoor Transit Advertising Billboards 15-42

43. FIGURE 15-A FIGURE 15-A Alternative structures of advertising agencies used to carry out the advertising program 15-43

44. EXECUTING THE ADVERTISING PROGRAM PRETESTING THE ADVERTISING  Pretests Pretests Portfolio Tests Theater Tests Jury Tests 15-44

45.  Posttests Posttests  Aided Recall  Unaided Recall  Attitude Tests  Sales Tests 15-45