COM256 Lecture Notes
COM256 Lecture Notes COM256
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COM256 Introduction to Advertising Lecture Notes for Exam 1 Relationship Marketing 0 Creating maintaining and enhancing long term relationships with stakeholders that result in exchanges of mutual value Goals of Relationship Marketing 0 get you to buy more because you like the company Maximize the value of pro table customers 0 Use data to know customer 0 Manage customercompany contacts 0 Asking for your zip code at Walmart an example of relationship marketing Importance of Relationships LTCV 0 Cost of lost customers Lifetime Customer Value 0 Cost of acquiring new customers 0 Value of loyal customers Relationship Levels Transactional o What you do every single day 0 Buying something before class transactions etc Reache 0 Going to an Apple store and they tell you to come back if you have any questionsquot Accountable 0 They actually call you send you a postcard etc saying hey let us know how we didif you need any helpquot Proactive 0 They actually call you and say we want to know what you like about this product etcquot Partnership 0 Customer advisory boards etc Relationship vs Relationship Dove commercial vs pepsi website Dove is building a relationship not by selling a product but by working toward an issue women feeling beautiful CustomerPro t Relationships 0 See chart in PowerPoint notes IMC Tactics 0 Mass media 0 Less advertising in mass media 0 Target messages 0 Heavier reliance on targeted messages 0 The movement from relationship marketing to IMC starts with outside perspective 0 Start with consumer needs rst 0 Start with partnership idea Affects on Customer View 0 Product View 0 News Word of mouth Web Expert opinion Gossip CEO personality 0 Financial report 0 Your product is a product of all of these things 0 Outside in IMC helps 4 Sources of Brand Messaging planned messages advertising publicity releases etc 0 low impact OOOOO 0 product messages product price packaging etc 0 great impact 0 service messages employee interactions etc 0 positive or negative unplanned messages news stories rumors disasters etc 0 company can in uence Dimensions of IMC The integration triangle 0 Say Planned messages 0 Do Product service messages 0 Con rm Unplanned messages What is Advertising Structured composed communication 0 Directed to groups Paid for Usually persuasive About products Identi ed sponsors Transmitted through a communication medium Oneway The twoway is marketing communications Dimensions of Advertising 0 Communication 0 Economic OOOOOO 0 Marketing Human Communication Process 0 Source encoding message channel noise decoding l receiver feedback Stern Communication Model 0 See PowerPoint graph slide Let s Evaluate Some Ads 0 Nike Angry Chicken Ad 0 Narrative 0 Someone is narrating the ad 0 The Persona The narrator the persona sending a message a He is communicating that a guy is being chased by a chicken The competitor the guy is running away competing with the chicken the entire ad 0 The Implied Receiver free runners or people who want to believe they are free runners People who run Athletes because it is usually always targeted toward athletes in Nike ads People who like comedy Assumptions of Free Market Economics Selfinterest 0 We have an interest in the product and the economy 0 We have an interest in products doing well 0 Complete information o The information is there and everything we need to know to make a decision is substantial and available 0 Many buyers and sellers o If you don t nd the right product you can go somewhere else and nd the product you want 0 There are so many buyers in the economy that the companies will make different products Absence of externalities o In a free market economy there are victims of products who aren t buying a product 0 A product purchase can affect a person who did not purchase the product 0 cigarettes are a good example of this you can buy a cigarette if you are over 18 but the secondhand smoke affects everyone even if they didn t buy a cigarette Functions and Effects of Advertising Identify and differentiate products 0 Branding Communicate product features and availability Induce customers to try products and suggest reuse Stimulate product distribution Increase product use Build value brand preference loyalty Lower overall cost of sales Bene ts of Strong Brands Premium pricing 0 You can charge more for the product Price war protection Increases new product success 0 More products are purchased later because people like the brand Leverage for negotiating Attractive to partners Aid in dealing with crisis Recruit top talent Garner customer loyalty Evolution of Advertising Preindustrial o Pre1800 0 During this era few could read 0 Rely entirely on pictures to sell something 0 Then the Chinese invented paper 0 Gutenberg invented the printing press lndustrializing 0 18001900 0 producers needed mass consumption to match mass production 0 for the rst time it cost less to buy a product than to make it yourself 0 transportation breakthroughs facilitated distribution 0 increased need for mass marketing techniques Industrial 0 19001980 0 fresh markets for new inexpensive brands of luxury and convenience goods 0 consumer packaged goods 0 catalogs mailed to rural areas 0 radio provides new medium 0 advertising becomes a profession Golden Age of Advertising 0 The product positioning era 0 Post WWII1970 0 Product differentiation 0 Market segmentation o Positioning 0 Age of television Soap operas Postindustrial 0 000000 0 1980present demarketing cold war ends multinational companies expand traditional products aged affluent baby boomers increased competition among agencies the internet and Facebook Retrospective on TV commercials The product Spot 1960 s 0 Lifestyle 1980 s 0 The Brand Persona 1990 s and beyond Basic Goals of Free Market 0 Society is best served by empowering people to make their own decisions and act as free agents 0 Free enterprise 0 The most good for the most people Advertising Controversies Both economic and social concerns 0 Does advertising 0 00000 Affect product value Cause higher or lower prices Make us buy things we don t need Affect us subliminally Affect demand In uence choices 000 0 Encourage materialism Promote or discourage competition Debaselanguage Affect art and culture Effect on Product Value 0 Advertising gives products added value 0 CocaCola Are advertised products necessarily better Economic Impact Billiards Model 0 See Exhibit 32 in Textbook Economic Impact Affected Areas Pnces 0 Consumer pays small of cost 0 Mass production lowers unit cost 0 Government price control 0 Ads can support higher or lower prices 0 Competition 0 Can reduce businesses in industry 0 Inhibit new competitors 0 Regional and local competition can work 0 Consumer Demand 0 Stimulates primary demand 0 O In uences selective demand In uences conquest sales 0 Consumer Choice 0 Encourages unique products services 0 New better brands dominate o Wider choices for consumers Business Cycles 0 Advertising contributes to the increase 0 Advertising acts as a stabilizing force Abundance Principle 0 In an economy that produces more goods and services than can be consumed advertising 0 Keeps consumers informed about alternatives complete information o Allows companies to compete more effectively selfinterest Advertising Stimulations Advertising stimulates 0 Competition Many buyers and sellers 0 Innovation and new products 0 Better educated consumers 0 Healthy economy Social Impact Criticisms Shortterm manipulative arguments o Deception o Unfair practices Puffery False promises Incomplete descriptions False comparisons Baitandswitch Visual distortions False demonstrations False testimonials Partial disclosure Smallprint quali cations 0 Longterm Macro Arguments Effects on Value System Promotes materialism Manipulation Incomplete information External societal costs 17 of US Consumers say advertising is a source for purchase decisions Proliferation of Advertising 0 Too much Clutters the different mediums Nuisance for customers Lower effectiveness for advertisers o More ads less effective 0 BOO1000 adsmessages per day Stereotyping minorities women immigrants disabled elderly 0 others 0 avoiding stereotypes does not equal embracing cultural diversity 0 O O O lnsensitivity whether or not an ad is labeled as insensitive depends on o subjectivity o geography o primetime appropriateness o nudity 0 language Interrelated Components of Ethics 0 Traditional actions of people in a society or community Philosophical rules society sets to justify past or future actions Attitudes feelings and beliefs of personal value system Chapter 4 The Scope of Advertising The Advertising Industry Organizations 0 Advertisers 0 Advertisers are the clients 0 May be different in the book but ignore it 0 Agencies 0 The cost of using an agency is pretty intense Suppliers 0 Film company editing company anything the agency might outsource to 0 Media 0 Not just media outlets 0 Media personnel media buyers media account people The Advertising Agency People 0 Most often employed by agencies 0 Researchers 0 Sales personnel Managers Accountants Computer scientists Attorneys Artists vvnters Photographers Musicians Performers Cinematographers Advertisers Local Directed to customers in the same geographic area 0 Franchises and dealers 0 Sellers of branded merchandise 0 Specialty businesses 0 Government and nonpro ts Typical Structure of small advertisers with high volumes of work 0 See Exhibit 41 Types of Local Advertising 0 Product 0 Regular priceline sale or clearance Institutional o Create favorable image increase awareness foster goodwill Classi ed o Recruit employees offer services sell merchandise 0 Ads can be created locally using local experts or ads can be created cooperatively Advertising Cooperative OOOOOOOOOO 0 Vertical coop 0 Manufacturer provides complete ad and shares costs 0 National brand association 0 Professional quality ads 0 Horizontal coop 0 Firms in the same business or part of town advertise jointly o Expands advertising budget Advertisers Regional and National 0 Regional 0 Several states 0 National 0 The entire country 0 See Exhibit 42 in textbook Centralized Department Structure 0 See Exhibit 44 in textbook Transnational Advertising Structure Divisions are responsible for their own product lines marketing and pro ts 0 Each division has an advertising department to coordinate sales and promotion across brands The corporate advertising department provides information and guidance Global Advertising Strategy Assumption that product use and needs are universal Standardized approach in all countries 0 Extensive research to ensure ad is basic and universal Appeal to basic human emotions and interests Roles of Ad Agencies 0 Independent 0 Business staff creative staff 0 Contracts for media space and time 0 Client oriented Understands global marketing Agencies Types 0 Reach 0 Local 0 Regional 0 National 0 Global 0 International 0 Range of Services 0 Consumer o BTB Specialty o Boutiques 0 Interactive 0 Media buyers Agencies People 0 Account management 0 Account research and planning 0 Traf c management 0 Administration 0 Creative concepts 0 Advertising production 0 Other services 0 Media planning and buying Agencies nHouse 0 Pros 0 May save money 0 Allows tighter control 0 May allow greater attention to the brand Cons 0 Lower creative quality 0 Less experience and talent 0 Loss of objectivity Agencies Client Relationships 0 Finding and attracting new clients 0 Presentations 0 Solicitation 0 Referrals 0 Community relations and networking ClientAgency Relationship Stages Prerelationship l development maintenance termination ClientAgency Relationship Factors 0 The Four C s 0 Chemistry 0 Conduct 0 Communication 0 Changes Suppliers 0 Art studios and web designers Film and video houses Printers and related specialists Research companies Media 0 Print 0 Electronic 0 Digital interactive Social Outof home Direct mail 0 Other Chapter 5 Marketing and Consumer Behavior Discussion Overview 0 The relationship between marketing activities and consumer behavior Marketing Context of Advertising 0 Marketing 0 Conception 0 Pricing 0 Promotion advertising 0 Distribution Consumer NeedsProduct Utility 0 Function Needs Psychological Wants Utility 0 Need satisfaction Goals of Marketing and Advertising Perception l exchange satisfaction Marketing Participants Customers Current customers Prospective customers 0 Center of in uence 0 Total market Market Types Transnational or global 0 Regional or national Local a Consumer a Business a Government Marketing Participants Market 0 Customers Markets Marketers Know the Consumer Consumer Behavior 0 The mental and emotional process and the physical activities of people who purchase and use goods t satisfy needs and wants Consumer Decision Process 0 See Exhibit 51 in Textbook Consumer Perception Process 0 See Exhibit 52 in Textbook Persuasion Change in belief attitude or behavioral intention caused by promotional communication Elaboration Likelihood Model 0 See Exhibit 53 in Textbook Results of Learning Attitude Interest Habit l Loyalty Consumer Motivation Process 0 Motivation 0 Underlying forces driving decisions 0 Needs 0 lBagc o lnsUnche VVants o Learned during lifetime Maslow s Hierarchy of Needs 0 Physiological Safety 0 Social Esteem SelfActualization 0 See Exhibit 54 in Textbook Consumer Motivation Rossiter and Percy s Fundamental Motives 0 Negative Motives Problem removal or avoidance a Problem removal a Problem avoidance n Incomplete satisfaction a Mixed approachavoidance a Normal depletion 0 Positive Motives Bene t bonus or reward a Sensory grati cation n Intellectual stimulation or mastery a Social approval 0 See Exhibit 55 in Textbook In uences on Consumer Behavior Interpersonal 0 Family 0 Society 0 Reference Groups and Opinion Leaders Example US Army Ad focused on Spanish Speaking audience Nonpersonal 0 Time 0 Environment 0 Place of sale Example Red Cross ad focused on its presence during an earthquake disaster Purchase Decision Evoked Set 0 Smart Phones iPhone Android Blackberry Evaluative Criteria 0 Features 0 Style 0 Cost 0 Service 0 Cognitive Dissonance 0 Was it worth the money 0 Does the data plan work for me 0 Could I have found a better price Chapter 6 Market Segmentation and the Marketing Mix Overview 0 How marketers use behavioral characteristics to cluster perspective customers into market segments The Advertising Dilemma Advertising does not always lead to marketing success 0 Marketing success does not always come from advertising The Market Segmentation Process 0 Identify 0 People with shared needs and characteristics 0 Aggregate 0 These groups into market segments according to their mutual interest in the product s utility Shared Characteristics Categories 0 Behavioristic 0 Demographic 0 Geographic o Psychographic Segmenting Consumer Markets 0 See Exhibit 61 in Textbook Behavioristic Segmentation User Status 0 Sole users 0 Semisole users 0 Discount users o Aware nontriers o Trialrejectors o Repertoire users 0 Purchase Occasion UsageRate 0 Volume segmentation Bene tsSought o Bene t segmentation Geographic Segmentation Sales are analyzed by 0 Region 0 Country size 0 City size 0 Zip code 0 Types of stores Demographic Segmentation See Exhibit 64 in Textbook Psychographic Segmentation Feelings Values Attitudes Personality Lifestyles 0 See Exhibit 65 in Textbook 10 values shared by people around the world 0 protecting the family 0 honesty O O O O O O O 0 health and tness selfesteem selfreliance jus ce freedom friendship knowledge learning MindBase nds shared patterns of behavior Market Segmentation Adidas captures attitude and lifestyle 0 Example Adidas advertisement Business Government and Industry 0 Differences from Consumer Markets O 0000 Professional buyers Many purchase decision factors Categorized by NAICS code Small number of buyers Concentrated geographically See Exhibit 68 in Textbook Aggregating Market Segments Select groups interested in public utility O 0 Whole market Speci ed market 0 Combine Groups to Build Target Market Segments O O Homogeneous Pro t potential The Target Marketing Process 0 Select a target market from the market segments identi ed 0 Use the 4P s of the marketing mix to shape a product concept for the market 0 Product 0 Price 0 Place 0 Promotion Target Market Segments Park bench seniors Movers and shakers Bohemian mix 0 Home sweet home 0 Young in uential New empty nest New beginnings Product Life Cycles 0 See Exhibit 611 in Textbook The Product Element 0 Classi cation by 0 Market 0 Consumption rate 0 Tangibility 0 Buying habits 0 Physical description Positioning 0 Own a word 0 Bene ts offered 0 Market segment appeal 0 Classi cation 0 Differentiation Perceptible Hidden Induced Product Branding Goal is BRAND LOYALTY 0 Product Name 0 Words 0 Symbols 0 Design Individual Family National Private Licensed Most Valuable Brands 0 See Exhibit 614 in Textbook Product Packaging ldenU cann Consumer appeal 0 Economy Containment protection convenience 0 These functions may become copy points The Price Element 0 Price Factors Demand Production and distribution costs Competition Corporate goals and strategies Variable in uences See Exhibit 615 in Textbook The Place Distribution Element OOOOO Direct 0 Network 0 Buyerclub lndirect 0 Intensive o Selective 0 Exclusive 0 Vertical o Franchises The Promotion Element 0 Communication Mix 0 Personal selling Product advertising Sales promotion Collateral materials Public relations Direct marketing OOOOO Chapter 7 Gathering Information for IMC Planning Chapter Overview 0 How advertisers gather intelligence about the marketplace and apply their ndings What is Marketing Research 0 Functions 0 Consumer needs and market segments Product development Assess effectiveness Financial planning Economic forecasting 0 Quality control Purposes o Recruit new customers 0 Retain current customers 0 Regain lost customers Top 10 Research Companies 0 See Exhibit 71 in Textbook Applying Advertising Research 0 See Exhibit 72 in Textbook Strategy Research 0 Product concept 0 Media selection 0 Target audience selection 0 Messageelement selection Concept Pretesting and Posttesting Pretesting Decisions 0 Merchandise 0 Markets 0000 o Motives 0 Messages 0 Media Posttesting Decisions 0 Whether and how to continue 0 What to change 0 How much to spend in the future Steps in the Research Process Analyze situation and de ne problems 0 Conduct informal exploratory research 0 Primary data 0 Secondary data Internal External 0 Establish research objectives 0 Conduct primary research 0 Qualitative 0 Quantitative Interpret and report ndings Qualitative Methods Intensive Techniques Projective techniques 0 Feelings attitudes interests opinions needs motives on ambiguous situation 0 Observation experimentation surveys 0 Focus groups A focus group is especially effective when used in conjunction with market surveys o Indepth interviews Interaction reveals true feelings and behavior Quantitative Methods 0 Experiment Observation Survey UPC 0 The UNIVERSAL PRODUCT CODE label allows measurement of advertising response Envirosell uses cameras to capture instore consumer shopping habts Understanding Data Types 0 Exhibit 75 in Textbook Methods for Pretesting Ads 0 Print ads 0 Direct questioning Focus group Orderofmerit test Paired comparison Portfolio test Mock magazine Perceptual meaning study 0 Direct mail test Broadcast advertising 0 Central location projection test 0 Clutter test 0 lnhouse test Methods for Posttesting Ads Aided recall recognitionreadership Unaided recall Aptitude tests OOOOOO 0 Inquiry tests 0 Sales tests Issues in Advertising Research 0 Quantitative Research Considerations 0 00000 Sampling method Questionnaire development Data tabulation and analysis International data collection ReHathy Validity ReliabilityValidity Bullseye Diagram International Data Research 0 Challenges 0 O O O 0 Higher expense Control and direction Language and culture Longer lead times Lack of standardization Developing Effective Questionnaires List speci c objectives 0 Keep questions short 0 State questions clearly Write a rough draft 0 Short opening statement Pretest the questionnaire 0 Start with easy questions 0 Logical ow to questions o No leading questions 0 Use crosschecking End with demographics Chapter 8 Marketing and IMC Planning Content of a Marketing Plan 0 State the organization s mission 0 Assess the current marketing situation 0 Write clear measureable timedelineated marketing objectives 0 Describe strategies to achieve objectives 0 State tactics or action programs for implementation 0 Explain how marketing efforts will be evaluated Propose a marketing budget TopDown Marketing Plan Situation analysis 0 Marketing objectives 0 Marketing strategy 0 Marketing tactics 0 See Exhibit 81 in Textbook Situation Analysis SWOT Analysis 0 Strengths o Weaknesses 0 Opportunities 0 Threats Marketing Objectives 0 Sales Target Objectives 0 Sales volume 0 Gross pro ts 0 Distribution points 0 Market share 0 Communication Objectives 0 Brand recognition 0 Bene t understanding 0 Positive attitudes 0 Buy intentions De ning Advertising Goals DAGMAR Method 0 You want to move people from to Action Conviction Comprehension Awareness The Marketing Strategy 0 Select Target Market 0 Position the product 0 Determine market mix Approaches to Positioning Attributes PriceQuality UseApplication Product class 0 Product user 0 Competition 0 Cultural symbol The Marketing Mix 0 Company Controlled Elements 0 Product 0 Price 0 Distribution 0 Communication BottomUp Marketing Plan 0 Marketing tactics Marketing strategy 0 Marketing results 0 See Exhibit 82 in Textbook lMC Approach to Marketing and Planning Mixes marketing and communications Follows the outsidein process begin with the customer 0 What media does customer use o Is the message relevant 0 When are customers most receptive to the message 0 Uses technology to learn about the customer Using lMC to Make Relationships Work 0 See Exhibit 83 in Textbook See Exhibit 84 in Textbook lMC Plan 0 Reviews the marketing plan 0 First section content 0 Summarize situational analysis and SWOT 0 Review target market segments 0 Itemize longand shortterm objectives 0 Restate decisions regarding positioning and marketing mix 0 Sets objectives using IMC pyramid MC Pyramid Top to Bottom 0 Action Desire Conviction Comprehension Awareness How Consumers Learn About Brands 0 See Exhibit 86 in Textbook MC Strategy and the Creative Mix 0 Target Audience 0 Product Concept 0 Communications Media 0 Advertising Message Target Audience and Buying Frequency 0 See Exhibit 87 in Textbook Strategy and the Creative Mix 0 See Exhibit 88 in Textbook MC Budgeting Views 0 Current Expense l Long Term Capital Investment Relationship of IMC to Sales and Pro ts 0 Market share increases as marketing budget increases 0 Sales increase with added advertising to a point 0 Advertising durability is brief need a consistent investment 0 Minimal advertising expenditures have no effect on sales 0 Some sales will occur without advertising 0 Culture and competition impose saturation limits Variables in Business Environment 0 Economic Political Social 0 Logical Allocating Funds for Advertising 0 Methods of Allocating Funds 0 Sales percentage 0 Market share 0 Objectivetask 0 Empirical research Share of MarketShare of Voice Method 0 Links promotional dollars to sales objectives 0 Used 0 new product introduction Strategic Budgeting ObjectiveTask Method 0 De ne objectives 0 Determine Strategy 0 Estimate cost Advertising Fallacies Myths 0 lMC is a RESULT of sales 0 lMC CREATES sales Realities o lMC AFFECTS sales Chapter 9 Planning Media Strategy Chapter Overview 0 How communications media help advertisers achieve marketing and advertising objectives Media Planning Decisions and Issues 0 Where advertise Which media 0 What time of year 0 How often 0 How to integrate Increasing Media Options 0 Results of complex options 0 Decisions are critical 0 Clients are demanding Clients want 0 Accountability 0 Information 0 Creative buys Media Options Challenges 0 Audience fragmentation Increasing costs Increasing buying complexity Increasing competition Media s Role in Marketing Framework Situation analysis 0 Marketing plan 0 Advertising plan 0 Set media objectives 0 Determine media strategy 0 Select media classes 0 Select media within classes Broadcast Print Other media De ning Media Objectives 0 Target Market 0 Target Audience Income education occupation and social groups Distribution channel Opinion leaders Financial community The media 0 See Exhibit 93 in Textbook MessageDistribution Objectives 0 De ne where when how often messages appear Audience size Message weight Audience accumulation and reach Expose frequency Continuity Gross Media Objectives 0 Advertising impressions opportunity to see 0 Gross impressions potential exposures 0 Total audience size for medium x ad frequency 0 Ratings of homesindividuals exposed to ad 0 20 rating points is 20 0 gross rating points GRP s R x F o reach number of different peoplehouseholds exposed 0 an ad at least once during a period 0 frequency average number of number of times individuals exposed to an ad continuity 0 duration of message or campaign during given period 0 frequency creates memory continuity sustains it Optimizing Reach Frequency Continuity See Exhibit 98 in Textbook See Exhibit 99 in Textbook The Media Mix the 5 M s Markets 0 Money 0 Media Mechanics Methodology Developing a Media Strategy 0 Decision Factors 0 Plan Scope 0 Market s Sales Potential Brand development BDI Category development CDI 0 Competition and Budget Media Availability and Economics Media Nature and Mood of Message Message Size and Position 0 Buyer Purchase Patterns 0 See Exhibit 910 in Textbook See Exhibit 911 in Textbook Elements of a Media Strategy Statement OOO Market 0 De nition of target audiences how to weight them 0 Media 0 Nature of the message media types to be used 0 Methodology 0 Reach frequency and continuity goals 0 Money 0 Budget for each medium plus effect of restrictions Mechanics 0 Size timing and position of message units Media Tactics 0 Criteria for selecting media vehicles 0 Campaign objectives strategy 0 Audience characteristics 0 Exposure attention motivation 0 Cost ef ciency CPM amp CPP Factors Affecting Exposure 0 The number of people an ad quotseesquot Senses used to perceive messages 0 Scratch and sniff o How much and what kind of attention 0 Medium information source or diversion General or speci ed audience 0 Ad placement in vehicle Factors that Increase Attention Value 0 Audience involvement with editorial content or program material Specialization of audience interest or identi cation 0 Number of competitive advertisers Audience familiarity with advertiser s campaign 0 Quality of advertising reproduction Timeliness of advertising exposure Evaluation 0 Cost ef ciency 0 Cost of exposing message to target audience not toal circulation CPM most common 0 For broadcast CPP Points of Evaluation 0 How much of each medium s audience matches the target audience 0 How each medium satis es the campaign s objectives and strategy 0 How well each medium offers attention exposure and motivation Economics of Foreign Media 0 Consider availability and cost structure 0 Consider differing cultural markets Reasons to Use Mixed Media 0 Reach more people 0 Repeat exposure in less expensive media 0 Add intrinsic value 0 Deliver print coupons 0 Produce synergy Scheduling Methods Bursting Roadblocking Blinking 0 See Exhibit 912 in Textbook Media Planning Software 0 What computers can do 0 Perform tedious number crunching 0 Saves time and money 0 Improves decision making 0 What computers cannot do 0 Cannot make the media quotcallquot Cannot decide medium best for message Cannot evaluate content Cannot judge validity or reliability Cannot interpret meaning OOOOO Guest Speaker Worked at Carat In US from 500 million to 6 billion Grew Chicago of ce from 8 to 80 o Orbitz 0 Jenny Craig 0 P zer 0 Hyundai 0 Papa John s 0 Motorola Worked at Ogilby Largest Advertising Agency in the world Merged of ine with online Managed all forms of new videoquot 0 Ameritrade o Allstate 0 Select comfort Proudest Accomplishments Raised 150 million for Save the Children in 2004 after Tsunami devastated Asia Climbed Kilimanjaro TODAY 5 ADVERSER IS AS INTERESTED IN MEDA A5 MESSAGE The message and media are getting blurred What is Media 0 The forms of communication that carry advertising messages 0 Boilermaker Special 0 Lemonade Stand 0 Business card Media Evolution 0 1980 proliferation of choices 0 broadcast television was rst Media Planning 0 The process by which advertising dollars are CREATIVELY AND STRATEGICALLY allocated in order to maximize the effectiveness of an advertising campaign involving 0 Target audience 0 Media type 0 Media selections The media plan should deliver advertising that connects to audience Know the Category Objectives and be creative 0 Information 0 Client marketing brief 0 Creative 0 Competitive 0 Product details 0 Strategy 0 A clearly de ned approach to how the plan will help achieve marketing objectives 0 Creativity o the Big Ideaquot 0 standing outbreaking through The Planning and Buying Process Preplanning Planning 0 Media buying Other Communication Considerations 0 Geography 0 National vs regional Seasonality 0 Time of year 0 Creative executions 0 Complexity of messaging Competition 0 Few vs many Parts of Media Planning Situation Analysis 0 Competitive Analysis 0 Target Audience Analysis 0 Objective and Strategy and Media Password Rowe Chapter 10 Creative Strategy and the Creative Process Chapter Overview 0 How IMC strategies are translated into creative beliefs and message strategies that guide creativity The Creatives The Creative Team 0 Creative director Copywriter n Verbal message Art director a Nonverbal ad design What Makes for Great Creative 0 Audience Impact 0 BOOM Gets your attentionnow o Informational Problem relief a Often lack big idea or fail in execution o Transformational Positive reinforcement to offer a reward n Often lack big idea or fail in execution Strategic Relevance 0 An ad may be entertaining but if it isn t relevant to the advertising strategy it WILL fail Boom Factor Strategic Relevance 0 Example German Ad on the side of machines Elements of Advertising Strategy as Interpreted by Target Target Audience 0 Value conscious adults 0 O 0 2549 families 1825 key in uential IMC Message 0 quotExpect More Pay Lessquot Product Concept 0 cheap chicquot Communications Media 0 TV and newspaper 0 Some outdoor radio digital media Writing the Creative Brief Issues to consider O 0000 0 Who Why VVhat Where When What Style Approach Tone What will the copy say Brief Elements 0 Objective statement 0 Support statement 0 Tone or brand character statement Rational And Emotional Appeals 0 See Exhibit 101 in Textbook Applroraclh Selected IMC appeals Needs Ratloinal Emotlolnal Self Opportunity for more Ambition Pleasure of reaction actuallzatlon leisure Avoidance of Simplicity Efficiency in operation or laborios task Sportplayphysical use Curiosity activity Entertainment Esteem Dependability in quality Pride of personal Stylebeauty Taste Dependability in use appearance Enhancement of earnings Pride of possession Variety of selection Sorclall Cleanliness Cooperation Romance Economy in purchase Devotion to others Sexual attraction Guilt Social achievement Humor Social approval Home comfort Sympathy for others Safety Durability Fear Health Security Protection of others Safety Pllltyslological Rest or sleep Appetite Personal comfort Message Strategy Verbal 0 I m latequot Nonverbal 0 looks at watch 0 Technical 0 Camera crew lms Message Strategy 0 Color and logo nonverbals make Target ads instantly recognizable Creativity Combining two ore more previously unconnected objects or ideas into something new Creativity s Role 0 Inform Persuade Remind Boom o FactBased Thinking vs Value Based Thinking Understanding Creative Thinking Thinking Styles 0 Hard 0 Soft Thinking Categories 0 Fact based 0 Value based The Creative Process Explorer 0 Insight outlook 0 Know objective 0 Brainstorm Artist 0 Develop quotBig Ideaquot 0 Transform the concept Adapt Reverse Compare Parody Imagine Connect Eliminate Judge o Is this idea an quotahquot or an uhohquot What s wrong and right with this idea What if it fails Is it worth the risk What is my cultural bias What s clouding my thinking 0000 The Creative Process 0 Leo Burnett s GPC Rating Scale 10 Worlld class 9 New standard in advertising 8 New standard in product category Excelllle nce in cratt Fresh icleas Innovative strategy Cliche Not competitive Destructive Atom banana Appalllling Warrior 0 Strategic position Savvy psychology Polished presentation Structural precision Solve the problem 0000 The Creative Pyramids See Exhibit 102 in Textbook Advertising Pyramid Creative Pyramid Action Action Desire Desire Conviction Crediio iliity Comprehension Interest Awareness i y i Attention Chapter 11 Creative Execution Art and Copy Chapter Overview 0 The role of art and copy in print radio television and on the web Importance of Design 0 What is SHOWN is just as important as what is SAID sometimes more 0 The rst thing you see is the artistic elements of an ad 0 The design is what grabs your attention 0 Positions the product 0 Creates brand personality 0 Sets the mood o Flavors the message copy The Art of Creating Print Ads 0 Design 0 How the art director and graphic artist choose and structure the artistic elements of the ad 0 Layout 0 How ad format elements are arranged o Gives the ad its look and feel 0 Develop nonverbal and symbolic components 0 Serves as a blueprint Visuals Headline Subheads Body copy Slogan Seal Logo Signature Art Design and Production 0 Thumbnail 0 Small rapidly produced drawing for visualization Rough Layout 0 Drawn to actual size art sketched in body copy lines 0 Comprehensive o Facsimile of the nished ad 0 Mechanical 0 Text and visuals in exact position ready for camera Dummy o Presents look and feel of brochures Cameraready o Cameraready art or digitally prepared art Creative and Approval Process 0 See Exhibit 111 in Textbook Client TopLevel Product Manager and or I Marketing Director Agency Account Director C D Account L I reative Irector Managemen eom ega Art Senior Account Account Director Writer Supervisor Manager Staff Writer Common Used Software 0 Page layout 0 lnDesign PaintingDrawing o CorelDRAW Adobe Illustrator 0 Image Manipulation 0 Adobe Photoshop Corel Paint Shop Pro 0 Web Design 0 Adobe Dreamweaver Macromedia FLASH Principles of Design 0 Balance 0 Proportion 0 Sequence 0 Unity Emphasis 0 Strong design Commands attention Holds that attention Tells as much as possible Facilitates understanding Layout Styles 0 Picture window 0 Also called posterstyle o A single large visual occupies about twothirds of the ad Mondrian Grid 0 Vertical and horizontal lines and shapes in a grid give geometric proportion Circus 0 Filled with multiple illustrations oversized type reverse blocks etc to bring the ad alive 0 Picture Frame 0 Copy surrounded by the visual or visual surrounded by the CODY CopyHeavy 0 When you have a lot to say and visuals won t say it Montage 0 Similar to circus 0 Uses multiple illustrations to make a single composition Combo 0 Combining two or more elements to make an ad more interesting Purposes of Print Visuals Capture attention 0 Identify subject 0 Quality readers Arouse interest in headline Create favorable impression Clarify copy 0 Show product in use 0 Support truth of copy Emphasize unique features 0 Provide campaign continuity Use of Visuals 0 Chief Focus Possibilities Package Product in use Product features User bene t Testimonial Product alone How to use product Comparison of products Humor 0 Negative appeal 0 Selecting the Visual o Is a visual needed for communication 0 Blackandwhite or color 0 Subject s relevance to creative strategy 0 Illustrator or photographer 0 Technical or budgetary issues HeadHnes Purposes o Attract attention Engage audience Explain visual Lead into ad body Present selling idea Compelling easy to grasp 0 Present product news Bene t 0 00000000 00000 Newsinto Provocation Question 0 Command Headlines and Subheads Subheads O O O O O Smaller than headline larger than body Above or below head Different color or style Support quotinterestquot step Transition to body copy 0 A great headline can do a lot of heavy lifting in a print ad 0 Example Meerkat Manor Ad Body Copy Continuation of heads and subheads Smaller type 0 Covers product features bene ts utility Seldom read 0 Focus on big idea or clear bene t Follows effective copy writing quotrulesquot 0 Styles 0 00000 Straightsell Institutional Narrative Dialoguemonologue Picture caption Device Formats 0 Leadin paragraph 0 Interior paragraphs 0 Trial close 0 Close action step Slogans Themelines Taglines breakfast of championsquot reach out and touch someonequot diamonds are foreverquot 0 provides continuity to a series of ads 0 reduces an advertising message strategy to a brief repeatable memorable positioning statement Seals Logos Signatures 0 Seal 0 Awarded when a product meets established standards Logos and Signature Cuts 0 Special designs of the advertiser s company or product name Writing Radio Copy 0 Speaker names 0 Sound effects 0 Dialogue 0 Time guidelines Writing Television Copy 0 Script 0 Same format as radio but left side is video right side is audio 0 Video Column 0 Describes the visuals and production 0 Audio Column 0 Lists the spoken copy sound effects and music Developing TV Commercials Storyboard roughs are essential to good commercials Ad Formats Execution Spectrum 0 Developed by Hank Seiden o Frivolous l serious 0 Straight announcement Musical Presenter Slice of life Testimonial Lifestyle Demonstration Animation Story Boards 0 After creative nalize a TV spot s concepts 0 Artists develop storyboard roughs Including camera angles and the script 0 To produce a visual guideline for production Writing for the Web 0 Audience BursonMarsteller s e uentials o 11 million heavy internet users 0 share opinions with many others 0 verify ad claims by visiting company website ReidGoldsborough s Writing Struggles 0 Content not image is king on the web 0 Site visitors scan rather than reading 0 Add interactivity Ads for International Markets 0 Campaign transferability Debate 0 Too expensive to create for every nation OR 0 Success requires creating a unique campaign for each market Translating Copy 0 Translator must be an effective communicator o Translator must understand the product 0 Translate from learned language into narrative language 0 Advertisers should provide easytotranslate copy 0 Other Considerations 0 Use of color 0 Phrases or slogans 0 Icon or visual image 0 Legal restrictions Chapter 12 Print Electronic and Digital Media Production Chapter Overview 0 Overview of how marketing messages are produced for print electronic and digital media Production Manager s Role 0 Planning and Organizing 0 Time allocation Directing and Controlling o Supervise production staff and suppliers Ad Production Time Varies See Exhibit 121 in Textbook Average Plro ecf M Plroieci 2 plroiecf I Conceptual I Editing des39 n ionn39n 391 l phalng p I g I Rendering and I Finol output I PrOdUCh39Oquot Review process Managing Production Costs 0 Overall budget busters o Inadequate planning 0 Production luxuries o Overtime 0 Special equipment 0 Hierarchy 0 Print Production 0 Engraver o Prepress graphic services 0 Paper costs 0 Size of print run 0 Electronic Production 0 Radio least expensive 0 Television very expensive 0 Digital Media larger distribution Average Cost of a TV Commercial 0 See Exhibit 122 in Textbook Exhibit I22 Average cosil to produce 0 TV commercial Print Production Process 0 Manual Print Process 0 Rough or comprehensive layout l 0 Type speci cation and typesetting l o Pasteup and mechanical l o Prepress l o Press work Computerized Process 0 From design to shipping o Platemaking l o Press work Preproduction Project planning 0 Log the project 0 Gather speci cs o Backwards scheduling from due date Typography o Readability o Appropriateness 0 Appearance and harmony o Emphasis Job Planning 0 Color palate 0 Paper 0 Speed quality or economy Preproduction Basic Choices 0 Speed 0 Quality 0 Economy 0 CHOOSE TWO Production 0 Creating the visual 0 Photos or illustrations 0 Stock or original 0 Adjustments Preparing Mechanicals 0 Layout and mandatories 0 Base art 0 Overlays CameraReady Art and Halftones 0 Line art 0 Halftone screens Prepress Stripping 0 Film negatives o Flats 0 Print plates 0 Color separation o CYAN o MAENTA o YELLOW 0 BLACK Abbreviated CMYK Printing and Finishing o Press run 0 Binding 0 Shipping Duplication and Distribution Press Run 0 O Proo ng Printing Finishing O O O O Drying Cutting Binding Shipping Production Quality Control Production Phase Quality Issues 0 O O O O O Misspellings Mismeasured lines Image size Misplaced crop marks Bad line and page breaks Missing or wrong punctuation Print Production Proo ng O O O O O Blueline proof Analog proof Color key Digital proof Iris Press proof Traps and Bleeds 0 See Exhibit 124 in Textbook Letter overprints Reverse background knockout Proper trap Improper trap II Exhibit 12 4 Black ink can overprint a background color liar left However art or text printed in a color other than black should have no background color underneath For example if a red letter a appears on a blue field a white reverse knockout will keep the blue from being affected by the red second from left It the red letter and the reverse knockout aren t properly aligned or the red letter is smaller than the white knockout the letters will not trap and white paper will show between the two colors for right Radio Commercial Production 0 See Exhibit 125 in Textbook Bidding Choosing Pre Producing Approved production production basic company meeting elements Casting Planning Producing special ancillary elements elements 9 Preproduction phase ltProcuctiongt Postproduction finishing phase a phase Exhibit 125 Radio commercials have three production phases The preproduction and finishing phases are usually the most complex Preproduction and postproduction editing and mixing typically require for more time than the actual recording session Preproduction o Assign producer Select studio Select director Determine talent Music 0 Sound effects 0 Production 0 Sound studio 0 Control room 0 Audio console Postproduction 0 Master tape 0 Dubs TV Commercial Production 0 See Exhibit 126 in Textbook OOOO Bidding Producing production basic meeting elements Choosing Pre production company Optical slop print Editing Interlock Casting Producing ancillary elements Planning special elements Approved Approved Videotape Release duplicates print F Preproduction phase ltPraductiangt phase I Both Film and videotape production I Film production Exhibit 126 The production processes for film and videotape are very similar to that for radio until the soundmixing stage Computerized editing speeds up the finishing phase for videotape Preproduction 0 Study the script 0 Study the storyboard o Analyze required production techniques Live action Animation Special effects 0 Choose location Postproduction finishing phase a I Videotape production The Shoot 0 Sound 0 Lighting 0 Camera 0 Location 0 Talent Postproduction 0 Film editor 0 Sound mixer 0 Director Editing Mixing Print 0 The director and editor select and splice scenes Advertising for Social Media and the Web Can you make a Viral Video 0 NO o What makes a video go viral o The PEOPLE Digital Media Career Opportunities 0 Production manager 0 Director 0 Interactive planner System designer Computer programmer Multimedia producer 0 Engineer Writer Copywriter Creative director Website Production 0 Learn F an Deggn Code 0 Launch maintain Chapter 13 Using Print Media Chapter Overview 0 How print advertising enhances the advertiser s media mix Role of the Print Media Buyer P405 Requires a range of knowledge and abilities o Negotiates and contracts with media 0 Creatively integrates print media into the mix 0 Understands print media and technology 0 Knows how to buy media space Pros of Magazine Advertising P 405 0 Rich color 0 Design options 0 Hit target audience 0 Long shelf life Prestige Authority BeHevathy Cons of Magazine Advertising P 405 Weekly or monthly distribution Expense Magazine Possibilities P 405 Bleed pages Inserts Covers 0 Front rst 0 Inside front second 0 Inside back third 0 Outside back fourth Custom magazines P 407 0 Magazine length and advertisements Junior unit Island halves Gatefolds Magazine Layout Possibilities P 407 See Exhibit 131 in Textbook Facing horizontal haltpages to dominate a spread Staggered horizontal haltpages Checkerboard lacing a haltpage ad Vertical halves across the gutter with the same objective Island spread Staircase units and double staircases on lacing pages Checkerboard mulltiple small space units on a single page Outside halves at a spread Source From quotMagazine Newsletter of Researchquot Magazine Publishers Association Vol 8 No l Reprinted with permission of Magazine Publishers of America Exhibit 13 An ad s position on the page influences its effectiveness The size and shape of the ad often determine where it will fall on the page These eight twopage spreads show most of the positions an ad can take Magazine Categories P 408 By Content 0 Consumer 0 Farm 0 Business 0 By Reach of Geography P 409 0 Local 0 Regional 0 National 0 By Size P 413 0 Large 0 Flat 0 Standard 0 Small or pocket Buying Magazine Space P 413 0 Understanding Circulation 0 Guaranteed vs delivered Primary and secondary readership Vertical and horizontal Subscription and vendor sales Paid and controlled circulation o Merchandising services 0 Advertising Age is a good example of a vertical publication ILClJ T FI39II39IT OOOO 1L39fZ39Ilquot II H3939llliquot3939lllquotlll39quot quotu LH1 EEKI ll L baquot 39quot39LquotlzquotHJ F quot l Il bulld lhuzz 39MY BLACK fOII39 Its brands 39 39 39 gt 1 V E39 IIL K Beam39s all talk Emmiu Hill39sl IJLILJPLEI in 39 I Iainmm singllln39gml l39 a Fritz 139v lquot J39s39 iJIIL39IIII B39JEEEH F mLmnH m w l39i ilrrul n IIIJA39ilIlHIl all quot 1 m rillE 3939iIIuIIi I 39 39 39 IL39l39luL 39 39 L Im xIIIIII39 Sun1 ili Irll I39II39 mummm li39il39lll BS 39 39 39 r I hl 5 bit Idea m 39 w r 39 I r 1 l I gt llll E HESS lllll 18365 l aguJHQJ I1i r39n1 I I T33 rill 1 artiL1LLI quoti iI I I L I1iau39l Muirminim nirtIuHht B39I39BWEMFQ39E mimmimuzimm Ell39Zkquotquot il lf limit 3 lb i Mailisnn Aim W l39llll in Ellillill t Ellll llle 3 J 39 JW J IWI ITIIIIA 39lI39LhI hl IuIM III 39139 E a hit 39 39 A Jl39f r39nL39WIIIi quotTu1i quotIrquot mw n i39l an NH 1 39q lllgi3939fil v In 39239 IIIF Ida LunelIEhsr r quotiIinallllul IE JlltlII 1Ifh Ilu39 amass at z J Eur mm Wm LIKE WET39I39E39 139Jnri39lvHIhiquot Ilr Pinquot 39 Eun39cr Ri39ul r ui SHWMMH L lb l lil39lp 39Elal39 ih lll TE niEila39iaa39 wb l lardEda ma39n39uslcal E qth r Elli HLi39III39I Er MSSEE39D39F EQTEE39E CDBHHEE EllEtwitr PD DENIED MIM Buying Magazine Space P 415 0 Cost per Thousand 0 Rage Rate Circulation1000 CPM Factors Affecting Ad Rate 0 Discounts for frequency or volume 0 Premiums for color bleeds covers or special market editions 0 Print mediabuying software saves time adds exibility and control Newspapers in the Creative Mix P 416 0 Ad Spending trend for newspapers 0 Who uses newspapers 44 of adults read daily newspapers each section read by 23 of readers 46 million newspapers sod daily 23 readers per paper 21 billion spent on ads in 2011 136 spent on newspaper Websites 0 See Exhibit 133 in Textbook P 417 Newspaper Ad SI ending iirl 2008 Rarnlk Advertiser E ilirl Miilllliions l Verizon Communications 6867 2 Mo cy s 609 7 3 Sprini Nexiel Corp 4606 4 All 3283 5 Time Werner 3i i 6 6 Fry s E leciron ics 2 29 3 7 Procter amp Gamble 2i 3 7 8 Seors Holding Co 2007 9 Generol Eleciric 2007 l0 Woli Disney i 852 Exhilbif 1313 Top 70 newspaper advertisers in the United States Pros of Newspaper Advertising P 417 Helps small budgets Timeliness Range of markets 0 Flexible medium for creativity 0 Geographic targeting Reasonable cost Cons of Newspaper Advertising P 417 0 Lack of selectivity Clutter Poor production quality 0 Lack of control 0 Short life span Newspaper Categories P 417 o By frequency P 417 0 Daily 0 Weekly 0 By size P 418 0 Standard 0 Tabloid o SAU system 0 By Audience P 419 o EthnicForeign Language 0 Business nancial o Groupsprofessional Other Types of Newspapers P 419 0 Sunday newspapers 0 Syndicated supplements 0 Independent shopping guide 0 National newspapers Types of Ads P 420 0 Display 0 Regular display ads 0 Reading notices 0 Coop programs Classi ed 0 Regular classi eds 0 Classi eds displays 0 Public Notices 0 Legalities 0 Government reports 0 Privateorganization notices 0 Financial reports Preprinted Inserts 0 0 0 0 Catalogs Brochures Coupons Mailback devices Example Virgin Mobile s 2011 Valentine s Day Display Ad Buying Newspaper Space Understanding Readership and Circulation 0 00000 O Sthruns Local vs national rates Flat and discount rates Short rate Combination rates Color ROP vs preferred position Coops a nd Networks 0 0 One ad many dealers One order one bill Insertion orders 0 Who pays and when Tearsheets o Veri es ad ran Print A Worldwide Medium See Exhibit 133 in Textbook Source Data from Standard Rate and Data Service The Lifestyle Market Analyst Exhibit 134 International consumer magazine paid circulation Every country has newspapers and magazines Wealthy welleducated consumers read English 0 Political changes spurred new trade magazines Satellitetocable broadcast options supplement print Print Media and New Technologies 0 Print media 0 Web site adds value by following up with indepth news Chapter 14 Using Electronic Media Television and Radio Chapter Overview 0 Factors to evaluate when considering radio and television in the creative mix The Medium of Television Broadcast TV 0 VHF and UHF 0 Independent stations 0 Network af liates Cable TV 0 Many stations some PPV 0 Special interest stations 0 Compete for Ads Major Cable Networks 0 See Exhibit 142 in Textbook T39t7 77 777 E Tlr7lr l1 atl lgtwtslfytr it 1 ABC Family 968 Familyyouth CNN 986 Newsinformationbusinessfinancialhealth Comedy Central 966 Comedy entertainment Discovery Channel 983 Biographyhistorywildlliescience ESPN 97 7 Sports ESPN2 973 Sports Fox News 948 Newsintormationbusiness Lifetime Television 97 6 Comedy drama movies women39s interest reality MTV 970 Musicentertainmentreality Nickolodeon 98l Animationtamilyyouth TBS 98 6 Comedytamilymoviessportsreal ity TLC 974r Informationeducation Turner Network Television 977 Dramamoviesmysteriessports The Weather Channel 983 Weathernewsscience USA Network 979 Dramatamilymoviessports Exhibit I4r2 Major cable TV networks Digital TV Advantages 0 Improved picture and sound 0 Ef ciency through multicasting 0 Increased number of channels 0 Interactive video and data TV Viewers Heaviest viewers 0 Middle income high school grads and families 0 Increased Viewing Hours 0 Average American spends 4 hoursday watching TV WorldWide older women watch most TV 0 Average 36 hoursweek Broadcast vs Cable 0 Homes with cable watch less broadcast TV 0 Many channels causes audience fragmentation 0 DVD viewing has increased Broadcast vs Cable Viewer Characteristics 0 See Exhibit 144 in Textbook Source Used by permission of Cable TV Adverlising Bureau Exhibit 39I44 Cable households provide advertisers with ah racl ive demographics Index of 100 US average TV Audience Advertising Beliefs See Exhibit 143 in Textbook 45 44 01 60 45 04 38 32 31 25 Persons Most Authoritative Persons Most Exciting Persons Most Influential Advertising Advertising Advertising I Television I Newspapers I Radio I Magazines I Internet U Mobile Source 201 0 Report wwwtvbsora media fileTVB PB Media Comparisons 20 l O PERSONSpdi Exhibit 143 In 20 70 adult viewers rated television as the most authoritative exciting and in uential advertising medium Use of TV in IMC TV 0 Niche medium 0 Cost effective 0 Imparts brand meaning 0 Leverage tool Types of TV Advertising Sponsorship Spotads Syndication Direct response Corporate ad Local TV Ad Spending in Billions See Exhibit 146 in Textbook 2006 2007 Network TV 207 224 4010 Syndicated TV 42 42 000 Spot TV i7i tso 877 Calole TV lo5 T78 788 Total 645 60 698 Source john Lafayette Ad Spending Stun lbles In TV Only Cable Shinequot W WW eekcornnews200803ad spendina sturnbles in tv onlpltp Exhilbit39 146 Where does all the money go Measured TV spending in billions oF dollars Most Expensive 30Seond Spots See Exhibit 147 in Textbook Rainlk Slhow aind Neitworrlk Price 000 l American idol Mont llFoxl 7 00 2 American idol Tuel Tax 700 3 Grey39s Anatomy AlBCl 405 4 Desperate Housewives AlBCl 37 8 5 Sunday Night Football lNlB Cl 350 0 Heroes NlBCl 330 7 The Simpsons lFoxl 300 8 24 Tax 300 9 CSI CBS 290 TO House lFoxl 290 Network and Syndication Distribution 0 See Exhibit 148 in Textbook a Networlk Advertiser Commercials Producer Network comlmerdals Local lt1 station Programming 392 I Programming b Syndication Producer Commercmls Local l as station Advertiser X Programming Why Direct Response Works 0 Consumers pay attention and respond immediately 0 Competitive advantage for brand managers Suf cient time for brand differentiation 0 Results measurable and accountable Ad campaign can pay for itself Combines power of advertising direct response and sales promotion De ning Television Markets 0 DMA o Designated market area for local stations l J Pike Meriwel her J Lamar l i ll t Tr oiu39p CODE Chambers Tallia aasa i l S Hrris l l twig s3 Ta lot Elimare Marion Russell iih haachee i39tt39tan tgaFriar r r ef f D I Bullock a St f j 4 g awar Webster Sumter I Em Cris Barbaur P Pike Endulph Terrell LEE Crenshaw Turner Worth Columbus Georgia designated marke Calhoun Dugherty De ning Television Markets 0 Dayparts CombMeas eanytnnge CombMeas late tringe Daytime Early fringe Early news Prime access Prime Late news Late tringe Q am 4 pm EST 4 530 pm EST 5 or 5 30 73O pm EST 730 8 pm EST 8 l pm EST ll l l 30 am EST ll30 pm l am EST TV Audience Measurement 0 Audience Measures 0 TV households TVHH o Households using TV HUT Program Rating o TVHH tunes to program Total TVHH in area 0 Audience Share 0 of viewers HUT Buying TV Time Formulas 0 Gross Rating Points Reach avg rating x Frequency GRP 0 Cost Per Point Cost Rating CPP 0 Cost Per Thousand Cost Thousands of People CPM Determine program availability Analyze program ef ciency Negotiate price 0 Determine reach and frequency 0 Sign broadcast contracts 0 Review performance af davits The Medium of Radio 0 Who Uses Radio 0 93 of adults listen each week 0 72 of adults listen every day 0 average time is 25 hours per day 0 radio s reach exceeds other media 0 See Exhibit 1411 in Textbook Exhibit 14 l Doib and weekly reach of radio for people 18 and older exceeds other media Daily reach Adults 18 73 76quot 69 Radio Television Newspapers Weekly reach Adults 18 93 95 84 Radio Television Newspapers Source Usedl by permissiori of The Radio Adlverlising Bureau Use of Radio in IMC o Involves people Favors integrated marketing Establishes intimate relationship 0 Target demographic group 0 Stretch media dollars 0 Maintain strategic consistency Most Popular Program Formats 0 See Exhibit 1412 in Textbook 200i I Stations 1488 295 249 226 Country News Spanish Sports Classic Oldies Adult Classic Hot Rock Adult Black Talk Hits Contemporary Rock AC Standards Gospel Exhibit 1412 Radio s most popular formats Graph shows number of radio stations For each format Source Data provided with permission trom the M Street Dataloase Copyright 2008 MiniNetwork Programming 0 Each network targets a speci ed demographic group 0 See Exhibit 1413 in Textbook Source Data provided with permission from the M Street Database Copyright 2008 Exhibit 1413 The radio mininetworks provide various types of programming including news talk and sports Each network targets a specific demographic group such as Adults 25 54 CBS or Men 78 years and older ESPN Buying Radio Time 0 Network 0 Spot 0 Local 0 Radio stations can increase market share with special programming Key Radio Terms Cumes Average quarterhour audiences Dayparts Ratings Based on Dayparts RunofStation ROS Total Audience Plan TAP 0 Average Quarter Hour AQH AQH persons x 100 Population AQH Rating 0 Gross Rating Points GRP AQH Rating x of Spots GRP o Cume Estimates Reach Potential x 100 Population Cume Rating Satellite Radio Sirius and XM are major players 0 Over 16 million listeners 0 May program choices 0 Exclusive programming Preparing a Radio Schedule 0 ID stations with greatest concentration cume of target audience 0 ID stations whose format offers highest concentration of buyers 0 Determine which dayparts offer the most potential buyers 0 Construct schedule with strong mix of best times 0 Assess proposed buy in terms of reach and frequency 0 Determine cost1000 target people Negotiate and place the buy Chapter 15 Using Digital Interactive Media Chapter Overview 0 Explore factors advertisers weigh when considering digital interactive media Media Evolution Doortodoor sales 0 Radio 0 Television 0 Remote control 0 Cable TV TiVO PCs 0 Mobile phones 0 Internet 0 HDTV 0 iPods 0 DVDs IPTV VCHP Online Ad Spending See Exhibit 151 in Textbook US oniine advertising spending 2000 2008 in billions After three years of contraction 70 due to the recession and dotcom bust eVlarketer tracked a rebound in 2003 and 60 predicts continued expansion Source Used by permission of elVlarketercom 39 5O 40 30 2O 10 2011 2012 2013 2014 2015 2016 U S onllne ad spending O The Internet as a Medium 0 Internet 0 A global network of computers that communicate with one another through protocols How the Internet Differs from Traditional Media 0 Distributed network offers continuous communication 0 Internet spacevast and inexpensive The World Wide Web HTML The Internet Audience 0 World wide audiences open the door for global marketers on the Web 0 See Exhibits 153 and 154 in Textbook lExhibil39 ilS3 Top 10 most visited Web sites Source Nielsen Reprinted with permission Milli iii39iiiiri llWl l tClil l lll ll ligalizi linlnjljin3n i l39i39iljilii i39 Exhibit 154 Number of people online in millions Data compiled by NielsenNet Ratings and the International Telecommunications Union Source From Internetworldslalscom l Hif i1 riilille Earl lgll39lll 4n39i i lifi ll ll l3939lll Ai jii39illi wulifillgi clicl liliil Who Uses the Internet 0 See Exhibit 155 in Textbook Exhibit 155 Percentage of demographic groups that use the Internet according to a 2008 Pew Internet 839 American Life Project survey 9 t at 1 Z t tZ H f ZJt t1 t x ll l4 l ligii Accessing the Internet 0 Narrowband Mobile Devices 0 Satellite 0 Cable Modem 0 Broadband How the Internet is Used Media Planning NielsenOnline ComScore 0 Deliver audited measurement of potential reach to help media planners chose the right vehicles Enhanced Tracking and Delivery 0 Cookies Visit frequency Ad calls Time of day Clicks Browser used Time of last visit ervers Central source Ad rotation Ad distribution Tracking ISP identity Behavior targeting Measurement Standardization 0 Ad impressions Click Rate Buying Internet Time and Space 0 Pricing Methods 0 Banner ad 0 Website selective space OAd OOOOOOMOOOOOO 0 Keyword 0 Clickthoughts 0 Af liate marketing program Stretching Targeting Dollars Focused ad campaigns are cost intensive Ad networks and tagged users can help Types of Internet Advertising 0 See Exhibit 158 in Textbook lExhibi l39 il5 8 US Online ad spending share by format 201 2016 lecljl gleiiieiiililin liltil Source Used by permission of eMdrkeiercom Types of Internet Advertising 0 Corporate or Commerce 0 Websites Web pages images videos data 0 Microsites Singularfocus supplement 0 Landing Pages Gateway to deeper areas of the Web site Search Engine Marketing 0 Search engine 0 Search results page 0 Page rank 0 Sponsored links 0 Google AdWords o PAY to have links andor ads placed on relevant Web pages and in search results 0 Google AdSense o EARN money by allowing relevant ads to be displayed on your Web site See Exhibit 159 in Textbook Exhibif 15e9 Percentage of online searches by search engine used December 207 7 as reported by comScore Search 16 29 2 3 I Google I Yahoo E AOL I Ask Source CemSeere Release April 200939 US Search Engine Rankings retrieved From wwwcomscorecom Press EventsPress ReleasesQOOQScomScore Releases April 2008 US Search Engine Rankings Reprinted with permission of CemSCere I Microsoft Types of Internet Advertising 0 Banners and Buttons 0 Interstitial o Superstitial 0 Rich mail 0 Preroll 0 Email 0 Spam 0 CRM 0 Viral Sponsorships o Added value Classi ed o Craigslist Problems with Internet Advertising Lacks mass media ef ciency 0 Complex Cumbersome Crowded Accountability Secur y Too democratic Using the Internet in IMC Interactivity 0 Promote purposeful dialogue 0 Feedback and promotion channel the same 0 Integrated Market Communication 0 Requires daily staf ng o Requires daily updating Both are COSTLY Ultimate Problem with Internet Advertising 0 Wrong focus 0 Push vs Pull 0 Best practices in digital interactive media 0 Adobe 0 Connecting networks 0 Hire the right people 0 Activate publics Global Impact of the Internet 0 World wide growth 0 Internet ad budgets 0 Local overseas businesses 0 NonEnglish speaking markets Other Interactive Media 0 Interactive TV 0 Mobile devices 0 SMS 0 QR codes 0 Mobile coupons Chapter 16 Using Outof Home Exhibitive amp Supplementary Media Chapter Overview 0 Factors advertisers consider when evaluating outof home exhibitive and supplementary media Emerging Outdoor 0 The Tale of Two Flash Mobs Using Outof Home Media Mall advertising 1 2 Airport adve Supplemental Forms 5 4 8sheet paste Bus shelters 5 6 Transit Sports stadiums 8 12 Instore CBCsheet posters 22 35 Bulletins Source Reprinted with permission ot The Outdoor Advertising Association ot America Inc Why Use Outdoor Advertising 0 Communicate a succinct message or image in the local language to a mass audience quickly and frequently at a reasonable cost 0 Mountain Dew was able to get people to interact with their billboard Outdoor Advertising Business 0 3000 plants outdoor advertising agencies 0 390000 outdoor ad structures 0 Responsibilities Find suitable locations Leasebuy property Acquire permits Erect structures Contract with advertisers Work with creatives Post or paint bulletins Maintenance Types of Outdoor Advertising 0 Bulletin Structures 0 14 x 48 quot 0 Junior Posters 0 5 x 11 30sheet Poster Panels 0 12 x 25 Spectaculars Buying Outdoor Advertising 0 100 showing 100 gross rating points daily 0 1 rating point 1 of market population 0 100 gross points reaching 881 of the adults in a market over a 30day period based on traf c estimates and actual ad seers Eyes on Impression Rating System Takes nto Account 0 People passing by Display size Angle to the road Format Street type Distance from road 0 Roadside position 0 Net effect 0 Only ad medium that tracks ad viewers 0 Frequency reduced where reach is negligible Location Location Location 0 Higher traf c volumes higher rates 0 Standard 500mo 0 Lowest CPM 145 for 30 weekly GRPS Outdoor Advertising Technology 0 Global positioning systems Sophisticated software 0 Digital video Barcodes Computerized painting OOOOO 0 LEDs Holograms Interactive kids 0 3D Regulation of Outdoor Ads 0 Highway Beauti cation Act 1965 Scenic Highway Construction ban 1991 0 State Regulation and Bans Outdoor Advertising and Social Media 0 Integrating the Outdoor and the Online Transit Advertising 0 Types and Locations 0 Buses Taxis Subways Transit shelters Terminal posers o Insideoutside cards and posters Buying Transit Advertising 0 Full 100 Showing 0 1 ad in each vehicle in the system 0 Special Inside buys 0 Basic bus Take ones BusoRama signs Total busbus wrap Brand trains o Immersive advertising Other Outof Home Media Postage stamps Mobile billboards trucks 0 Electronic signs 0 Parking meters 0 Public phones Exhibitive Media 0 Product packaging Trade show booths and exhibits Packaging Considerations 0 See Exhibit 165 in Textbook 0000 0000 lEViN1llf l39r39irrjll irt it let tuiflii39r w 7 tuiflirr39 M if re Ciri39l ll39ifl if rte tf Free f t Vl e i ei39i if iii 3 iii iitit7 irriwiilere lilil E l licrri39lle tree Q t lri39l39r39niwl ettevt t emergep quot q liift iiii iir liri39il 4tiigi Merle Hlk39l l39l 39l H l l in39rijeiijrg t i it w u it wgii r i gl r r gii gt i r wgii i lrrtiutirr ftquot u e gingl tn the 7 miller icil 39 quot 7 le to lwmrrlle i 7 7r li iiiigiiiigiii g i in w rlr igilgiiggiiig ii r r I e Her rre ligi Cr irrgii fli rri leilgjinr irr39efiu39ii irri e lfilfii lgfilfelevjl lintill r r i g 7 till Viiirr llet giiifiir39iiiili M at i quotl l l l 39 39l H l i ll iii t iiirrgii eflierrii Err iifiirir39rerri il lirii39ifrirrgi 7 l 39 l l Clil l ll llilgl r i l lttli iiifi39r39il lQZiQi il i ilf i iflmf lififlfrilf illl i r 7 irr i39ri ji il39u pir39riiut ii fittirjlrliiif 7 r r rcr ever marine 39 ten grlgle loom tor r ice 39 i trillion alcle tor reliant l l iiriclwii i iormriinlyre rig Mg lei pigllc r alteren i1 talent cl39rl riilerenie r tecierzl inil li i i l i iZQi r l il lf fil legitilfilixiii 4 frilfiljrilit it i39r39riit i rill Source From quotBalancing Traditional Packaging Functions with the New quotGreen Packaging Concernsquot by W Wossen Kassage and Dharmendra Verma SAM Advanced Managementjournal pp l5 23 29 Volume 57 Number 4 Autumn lQQQ Reprinted with permission Exhibil 165 Expectations and concerns in packaging development Packaging In uences Environmental Government 0 Manufacturing 0 Frequency of Change Trade Show Booths and Exhibits 0 Planning Budgeting Promotion 0 People 0 Productivity 0 How consumers learn about trade shows 31 23 1 20 I Show producer I Association El Not notified direct mail mailing I Tracie I Exhibitor I Business publication ad announcement associate Exhibit 16gb How do customers iearn about trade shows 0 Wait time for a sales rep at a booth 41 Will not wait 30 sec 1 min 3 min 5 min Source Data From INCOMM Research Exhibit 16e7 How long a visitor will wait For a sales rep at a tradeshow booth Specialty Advertising Specialty product Premium 0 Given free Directories and Yellow Pages 0 Serve as locators buying guides mailing lists 0 Content 0 quotHowquot to purchase 0 Yellow pages 0 Fifth largest ad medium 0 Competition pushed userfriendly directories o Ridealong program for coupons and samples Exhibit 16e8 Overall advertising reach from media combinations Wl ien Yellow Pages advertising is used in conjunction with other media reach increases significantly 305 News papers 202 Yellow Pages Yellow Pages Yellow Pages Yellow Pages and and TV and radio newspapers Source 2007 Media Impact Study conducted by TNS Reprinted with permission of Yellow Pages Association Emerging Media 0 Cinema advertising 0 Product placement 0 ATMs Chapter 17 Introducing Social Media Chapter Overview 0 Explore how social media are changing the way advertisers think about engaging with their audience Introducing Social Media 0 No geographical barriers Revolutionizes communication 0 Has a stickinessgains repeat audience Openness anyone can see and comment 0 Facebook 0 Twitter 0 Blogs 0 YouTube Two Sides of Social Media 0 The promise o The reality Social Media Personas 0 See Exhibit 171 in Textbook a Publish a blog to Publish your own web pages Upload video you created Upload audio music you created C Write articles or stories and past them Creators 24 23 r i I 70 Update status on a sacral networking Stile conversation llms 36 6 6 C Post updates on Twitter rto Post ratings reviews at products or services Comment on someone else39s biog o Contribute to online lorums C Contribute to edit articles in a wiki Critics 36 33 Use lRSS quotFaeds Vote For websites aniline C Add tags to web pages or photos Collectors 23 22 CMaintain lprolile on a social networking site C Visit social networlking sites Joiners 68 50 r Read blogs Listen to podcasts Watch video llrorn other users Read online Forums Read customer ratings reviews 6 Read tweets Spectators 73 69 rafter 17 None at the above lnactives 14 2t Exhibit 39Il 7t f f Seven user types identi ed by Forrester Research Source Retrieved from WWWmihdiumperscomfbloax i20l 2 quotO l rialobal socialmediaodoptionZUl ifquot Advertising Spent on Online Media 0 See Exhibit 172 in Textbook 60000 50000 Interactive marketing spend US millions 1 0000 Mobile marketing Social media Email marketing Display aclvertising Searc11 marketing Total Precent at all ad spendl Exhibit 39I72 40000 9 to 0 20000 0 O O I Mobile marketing Social media l Email marketing Dislplay advertising Search marketing 2008 232 455 1 1 70 7699 1 351 6 23073 9 2009 2010 201 1 201 2 201 3 2014 CAGR 391 561 748 950 1131 1274 27 71 6 935 1 217 1 649 2254 31 1 3 34 1248 1355 1504 1676 1 867 2081 1 1 7829 8395 9846 11732 14339 16900 17 15393 17765 20763 24299 27786 31588 15 25577 29012 34077 40306 47378 54956 17 10 11 13 15 17 19 Amount of advertising spent in various types of online marketing Source Forrester Research Interactive Advertising Forecast 409 US Only wwwmarketinapllarlmcam Wp content uploads 2009 04 picture21pnaamplmareturlhtlp wwwmarketlnapilarimcam 2009 04 iorrestersoclalmedlaarowthhtmlampl1 725ampW1092851468lttbnldk7mHoAclK3Y5Zamptbnl18 3amptbnwz125ampZoom1ampdocldHrvabW oOWb1Mlt3lthlenlt3ltsaXlt3ltelT9C114H GeWC2wWW4leCA8ltsql2lt3ltved0CloBEPL1MBNlAA8ltdur423 Adoption of Social Media 0 Advertisers are cautious need to interact carefully with social media 0 Complaints can go viral 0 Likes can go viral Social Media s Penetration by Age Group 0 Over 80 of the global Internet uses social networking 0 See Exhibit 173 in Textbook 50 80 A 84 A A 53 84 94 93 90 85 844 830 829 839 80 75 70 65 60 REACH AGE 1524 AGE 2534 AGE 3544 AGE 4554 AGE 55 MALES FEMALES I JULY 2010 I OCTOBER 2011 Exhibit 173 Social networking penetration omong worldwide demographic groups Sourcetmo lhesoclolskinnvcom lOOasoclomediostolislicsforQOl2 Top 10 Social Websites and Forums 0 See Exhibit 174 in Textbook Focebook YOUTH be Twitter 390 Answers Pinterest Linkedin Tagged Google MySpoce Yelp Social Trends 0 Social media have become technological interpretation of our own natural behavior 0 Limited ability to imitate complex human behavior 0 Trending what people are talking about on social media 0 Social mediums can trade information based on permissions granted by the user Who Uses Social Media 0 See Exhibit 175 in Textbook Exhibit 175 Who uses social neMorking sires g5an JJJJ 1quot 3quot in g i Moles lnclicaies slaiislically significant difference between rows Extra asterisks mean differences wilh all rows with lower figures Source The Pew Research Cenler39s Internet amp American life Proiecl January 20 February 19 20f 2 Winter Tracking Survey n f l 72399 adlull Internet users ages l 8 and older including QOll cell phone inlerviews lnl erviews were concluded in English and Spanish Types of Social Media Forums Blogs Microblogs Wikis RSS Social bookmarking Social networking Data explosion Effects of Data Explosion Data collection gives marketers a greater understanding of how their audience interacts shares likes dislikes and feels about their brand Software as a service SaaS can help marketers harness this information o Tweetdeck allows users to follow multiple topics at once and for marketers to follow the conversations Managing Social Media Traditional Media 0 80 planning o 20 execution Social Media 0 20 planning 0 80 execution cheaper media but labor and resource intensive 0 web site 0 and owned property 0 companies post on social media for free 0 companies employ or outsource social media page maintenance danger of boring or overwhelming the audience or over tweeting software can help control a company s social presence 0 listening tools help manage fragmentation Building Social Authority Transparency and authenticity 0 Value beyond pricing 0 Connect brand to customer s heart an emotional response Pepsi remains authentic by using social media for good causes Twoway brand communication 0 Instantaneous feedback mechanism 0 Ampli es workof mouth WOM and makes it measurable Factors in uencing consumers to try local business of respondents Recommendation from a friend Location of the business A deal Familiarity with the owner Article or review tram a critic Online reviews Other Don t knowretused Customer Service in Social Media 0 Immediate customer response 0 Customers help each other in product forums 0 Helps company s customer service department Social Media by the Numbers 210 billion Emails sent daily 0 3 million 0 Images uploaded to Flickr daily 0 145 million 0 Daily mobile services revenue 0 700000 0 New Facebook members daily 0 45 million 0 Facebook status updates daily 0 5 million Tweets posted daily 0 900000 0 Daily blog postings How Social Media Transforms Business Dollars transferred from traditional media to social media Ad agencies increase ad placement on social media Employees staff social media sites Social media in uences purchases 0 Increases customers increases revenue Social Media Users 0 Follow brands 0 Search for jobs Companies use social media as marketing channel Common Uses of Social Media Blogs Customer service Entertainment Brand monitoring social listening Social ads Games and gami cation Remarketing and MROCs Crowd sourcing Reviews and opinions Chapter 18 Relationship Building Chapter Overview Emphasize the importance of relationships and demonstrate how marketing communications can be integrated with advertising Relationship Marketing and lMC Company s good reputation earned by 0 Seamless consistent communication Understanding Direct Marketing Direct Marketing is o A measurable system of interactive marketing 0 Using one or more advertising media 0 To effect a measurable response andor transaction 0 At any location Role of Direct Marketing in lMC How Geico uses direct marketing as part of lMC 0 Linkage media TV advertising to attract prospects and customers 0 Database Names addresses emails of prospects and customers 0 Communicate Web site andor direct mail to prospects and customers Direct Marketing Companies 0 Growth in direct marketing spurred by telecommunications and computer technology 0 See Exhibit 181 l EpsilonPurpleEpsilon 4605 2 Rapp 3645 3 DrattFCB 3060 4 Wunderman 2680 5 Aspen Marketing Services 2i 26 3 Merkle 2i i l 7 HarteHanks Direct l777 8 OgilvyOne Worldwide i i58 Q Ketchurn Directory Advertising lOl 2 l0 Digitas 943 Exhibit 1 Se39l Largest directresponse agencies in the United States Marketing Databases 0 Marketing databases enable marketers to o Analyze customer information 0 Target segment and grade customers 0 Record customer and channel transactions 0 Measure ef ciency of directresponse ads 0 Two Processes 0 Data Management Gather Consolidate Update Enhance 0 Data Access Manipulate Analyze Rank Direct Marketing s Role in lMC o RFM Recency Frequency Monetary o A mathematical formula that helps determine the most valuable customers in a company s database 0 See Exhibit 182 701 7 12 1 4 3745 375 1975 16 3575 701 10 24 2 8 1786 179 3379 16 149379 702 5 Ci 2 8 2543 254 1654 4 2054 703 4 a 1 4 3322 332 1332 7 2032 703 8 12 2 8 4234 423 2423 7 4450 703 1 1 24 1 4 1895 190 2990 7 7445 704 Q 12 11 4 10945 900 2500 23 4800 705 5 C 2 8 3765 377 1777 0 1777 705 7 12 3 12 4963 496 2890 0 4673 706 000 43 4300 Notes Points assigned by recency ol purcl iase Currant quarter 24 points last 6 months 12 points last Q iiionths O points and last 12 months 3 points Frequency points number at purchases X 4 Carryover points Points carried over from previous calendar year Q Q 39 Monetary points 10 percent at dollar purchase with a ceiling at 9 points I U Cumulative total points Total account points plus carryover tram previous calendar year The RPM tormula is a mathematical model that provides marketers with a method tor determining the most valuable customers in a company39s database according to recency frequency and monetary variables Recency points are assigned accordling to the date at the customer s last purchase 24 points it the purchase was made within the current quarter 12 points it within the last a months 3 points itwit hin the last 9 months and 3 points it the purchase was made within the last 12 months Frequency points are equal to the number at purchases made multiplied by a lactor at 4 Monetary points are equal to 10 percent of the dollar purchase with a maximum of 9 points to prevent artilicial distortion by an unusually large purchase The R F and M variables are summed to provide total points The cumulative total is a measure at relative customer importance to the company the larger the value the more likely a customer is to make additional purchases of significant value The higher value customers such as account numbers 701 and 703 who make multiple purchases are likely prospects lor targeted mailings and special otters Exhibit 182 RFM irecerrcy frequency monetarle analysis of accounts Advantages of Direct Marketing 0 Best way to build a database Indepth customer knowledge t build relationship 0 Accountability can be measured 0 Convenience to timesensitive customers 0 Can be more private Drawbacks of Direct Marketing 0 Negative salesoriented reputation Consumers enjoy visiting retail stores to shop 0 Lack prestige offered by some media Clutter 0 Privacy concerns Direct Marketing Activities 0 Personal direct selling Telemarketing DirectMail Advertising 0 Email 0 Sales letters 0 Postcards 0 Folders 0 Brochures o Selfmailers 0 Statement stuffers House organs 0 Pros Ef cient Effective Economical Increase effectiveness of other media 0 Cons Cost Junk mail 0 Three Basic Costs of Direct Mail 0 List acquisition 0 Creative production 0 Distribution 0 Buying Direct Mail Advertising 0 Acquire Directmail lists House Mailresponse Compiled 0 Consider a list broker Charges a commission Tailors the list Improves list quality 0 Produce the package Designer Writer Letter shop 0 Distribute the package Weight and delivery method affect cost a Catalog sales make up the largest portion of direct marketing 0 DR print advertising 0 Newspaper ads 0 Inserts 0 Coupons 0 DR broadcast advertising 0 Infomercials 0 Talk show hosts Who Watches Infomercials See Exhibit 185 Exhibit 185 Who watches and buys from infomercials ERA DOES NOT CLAIM DATA MATERIAL Primary gender Female 532 Male 554 Female 5l 7 Mean age 4i 2 452 459 Primary ethnicity Caucasian Caucasian 764 Caucasian Primary employment Fulltime Not employed Fulltime Marital status Married 493 Married 528 Married 303 Children present Yes 40 l Yes 385 Yes 43 l Residence Suburban Small town 3i 5 Suburban Mean household income 56000 49000 55000 Direct Response Broadcast Ads 0 Television is a powerful instrument for direct marketers 0 DR digital advertising Email Display ads Bannerads Search ads QR barcodes SMS MMS 0 Apps Personal Selling 0 The Human Medium 0 See the people 0 Solve problems 0 Build relationships 0 Create longterm bene ts 0 Personal Selling 0 The interpersonal communication process by which a seller ascertains and then satis es the needs of a buyer to the mutual longterm bene t of both parties Advantages a Personal nature a React to body language I Questions and answers a Flexibility n Tailored presentations a Live demonstrations Drawbacks n Labor intensive OOOOOOO n Costly a Time consuming a Few economies of scale a Poor reputation of sales In Finding good salespeople Role of Personal Selling in IMC Gathering information for company Providing information to customers Ful lling customer orders Building client relationships Sales Promotion in IMC Sales promotion 0 Direct inducement that offers extra incentives anywhere along the marketing route to enhance or accelerate the product s movement from producer to consumer May be used anywhere in marketing channel Involves a direct inducement Designed to change purchase timing or shift inventory a Rebate n Coupon n Sweepstakes or contest a Special pricing n Sponsorship a freebie Snapple used sales promotion and product positioning to advertise its Mango Madness avor 0 Advantages Value added tool Maximizes sales volume Sales accelerator o Disadvantages Excessive sales promotion hurts pro ts May have negative attitude on brand attitudes and long term market share High cost Overly aggressive sales promotion Strategies and Tactics Push Promotions Slotting allowances Trade Deals Forward Buying Diverting Display allowances OOOOO Buyback allowances Ad allowances Push money and spiffs Meetingsconventions 0 Coop advertising 0 See Exhibit 186 Push strategy 0000 Marketing Resellers Marketing End users communications communications o Payne Heating and Cooling uses trade promotion to increase distribution 0 Manufacturers often pay a display allowance for instore exhibits 0 Pull Promotions 0 POP materials Coupons Free standing inserts Refunds and rebates Premiums Electronic coupons Combination offers Contestsweepsta kes 0 Sampling 0 See Exhibit 186 Pull strategy OOOOOOO Marketing communications m m 0 Effectiveness of Various Promotions Percent Bought but Bought but Bought Bought Bought Bought didn39t need never tried different brand more sooner later I Coupons I Rebates I Sweepstakes I Premiums Source Reprinted with permission of the American Marketing Association Chapter 19 Relationship Building part 2 Chapter Overview 0 Role of public relations sponsorships and corporate advertising in relationship to marketing and integrated marketing communications Public Relations 0 Role 0 Management reputation 0 Build public consent 0 De nition 0 Strategic management of relationships and communications with publics 0 Purpose 0 Create mutual goodwill Concept 0 Practice 0 Management function 0 Profession PR Differs from Advertising 0 Public Relations 0 Unpaid media appears unbiased 0 Works to build credibility o lmprecise Advertising 0 Paid media includes company s bias 0 Audience skeptical o Precise and controlled Practitioner Viewpoints 0 Marketing is our company s umbrella process It determines market needs sales and distribution 0 PR is our company s umbrella process It is broader and used to maintain relationships with all publics including investors and employees Public Relations Job Activities 0 Planning and Research 0 Analyze relationships 0 Evaluate attitudes and opinions 0 Determine in uentials Reputation Management 0 Publicity 0 Crisis communication management 0 Community involvement 0 Press agentry Other Activities Public affairs and lobbying Speech writing Fundraising and membership drives Special events management Corporate blogs Social media PubHcanns Public Relations Tools 0 News releases and press kits 0 Photos 0 Feature articles 0 Printed materials 0 Posters exhibits and bulletin boards 0 Audio visual materials Sponsorship Embraces two disciplines 0 Sales promotion 0 Public relations Sponsorship Growth 0 Cash or inkind fee paid to a property in return for access to the exploitable commercial potential associated with that property 0 See Exhibit 193 OOOOOOO Advertising 7 l 2 2 40 40 Soles prormolion 40 33 l 7 2 l Sponsorship l 003 3 9 5 5 4 l Source IEG Sponsorslrip Report wwwsponsorshipcorn lllEGSlR20l ZOl O3 lEconorrricUncerroinhrToSlowS ponsorshipGrowlhlln ospx Exhibit 193 Annual Growth of Advertising Sales Promotion and Sponsorship 2009 20 7 2 Sponsorship Bene ts Public approval Involve stakeholders Facetoface customer access Enhance public image Boost employee morale Cost ef cient Convert fan loyalty to sales Sponsorship Drawbacks Types of Cosz Clutter Dif cult to measure effectiveness Sponsorships Sports marketing Festivals fairs and annual events Entertainment Causes Arts and culture Venue marketing 0 See Exhibit 192 1 6790 10 151 11 9 8395 5 5 1 14172 5037 l68l 13 I Sports I Associations organizations and members Arts I Festivals tairs and annual events ll Causes I Entertainment tours and attractions Source Annual Sponsorship Forecast IEG LLC Reprinted with permission Exhibit 192 Annual sponsorship spending in North America in millions Methods of Sponsorship Buy into an existing event 0 Sole sponsor o Cosponsor Create own event 0 Allows more control 0 More cost effective 0 Goal 0 Good t between company and event Measuring Sponsorship Results 0 Pre and post sponsorship research surveys 0 Measure changes in awareness or image 0 Comparing free media exposure to advertising space or time 0 Measures spending equivalencies 0 Using a tracking device such as coupons 0 Measures changes in sales revenue Measuring Sponsorship Value 0 Have CLEAR goals and narrowly de ned objectives 0 Set a MEASURABLE goal 0 Measure against a BENCHMARK Do NOT change other marketing variables during the sponsorship Incorporate an EVALUATION PROGRAM 0 Establish a BUDGET for measuring results Corporate Advertising 0 PR advertising 0 Institutional advertising 0 Corporate identity advertising 0 Recruitment advertising
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