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Chapter 11

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Department
Marketing
Course
MKTG 2030
Professor
Ben Kelly
Semester
Winter

Description
Chapter 11: Advertising, Public Relations, Promotions, Direct Marketing, and Personal Selling 11.1 Advertising: The Image of Marketing Types of Advertising Product Retail and Local Institutional Advertising▯ Advertising▯ Advertising▯ Corporate Advocacy Public Service Advertising▯ Advertising▯ Announcements▯ Product Advertising Product advertising is advertising messages that focus on a specific g/s Institutional Advertising Institutional advertising is advertising messages that promote the activities, personality, or POV of an org or company Corporate advertising promotes the company as a whole instead of the firm’s individual products; some firms d on’t’ advertise specific products at all but have build their businesses with only corporate ads Advocacy advertising is a type of public service advertising where an org seeks to influence public opinion on an issue b/c it has some stake in the outcome Public service advertisements (PSAs) is advertising run by the media for not-for-profit orgs or to champion a particular cause without charge Retail and Local Advertising -­‐ Encourages customers to shop at a specific store or use a specific local service -­‐ Informs about store hours, location and products that are available or on sale Who creates advertising? Advertising campaign is a coordinated, comprehensive plan that carries out promotional objectives and results in a series of advertisements placed in medi a over a period of time Limited- service agency is an agency that provides one or more specialized services, such as media buying or creative development Full-service agency is an agency that provides most or all of the services needed to mount a campaign, including research, creation of ad copy and art, media selection, and production of the final message -­‐ An advertising agency hires a range of specialists to craft a message and make the communication concept a reality Account management Account executive (account manager) is a member of the account management dept. who supervises the day -to-day activities of the account and is the primary liaison b/w the agency and the client Account planner is a member of the account management dept. who combines researc h and account strategy to act as the voice of the consumer in creating effective advertising Creative services Creative services consists of the agency people (creative director, copywriters, and art director) who dream up and produce the ads; the ‘heart’ of the communication effort Research and Marketing services Research and Marketing Services is an advertising agency department that collects and analyzes info that will help account executives develop a sensible strategy and assist creative in getting consumer reactions to different versions of ads; the ‘brains’ of the campaign Media planning Media planner is the agency personnel who determine which communication vehicles are the most effective and efficient to deliver the ad; the ‘legs’ of the campaign -­‐ Agencies are increasingly practicing integrated marketing communication (IMC); because IMC includes more than just advertising, client teams composed of people from account services, creative services, media planning, research, public relations, sales promotion, and direct marketing may work together to develop a plan that best meets the communication needs of each client User-Generated Advertising Content: Do -It-Yourself Advertising and Crowdsourcing User-generated content (UGC) aka consumer- generated content includes online consumer comments, opinions, advice and discussions, reviews, photos, images, videos, podcasts, webcasts, and other product-related stories available to consumers -­‐ Marketers need to monitor (and sometimes encourage) UGC for 2 reasons: 1. Consumers are more likely to trust messages from fellow consumers than what companies tell them 2. A person who searches online fo r a company or product name is certain to access any number of blogs, forums, homegrown commercials, or online complaint sites that the product manufacturer has nothing to do with Do-it-yourself (DIY) ads are product ads that are created by consumers -­‐ Benefits: Consumer-generated spots cost only one-quarter to one-third as much as professional TV and Internet ads -­‐ Feedback on how consumers see the brand and the chance to gather more creative ideas to tell the brand’s ‘story’ -­‐ Crowdsourcing is a practice in which firms outsoure marketing activities to a community of users (a crowd) Ethical Issues in Advertising -­‐ Advertising is manipulative - some claim that ads cause people to make purchases they wouldn’t otherwise ads, however consumers aren’t robots and they’re free to choose whether to respond to an ad -­‐ Advertising is deceptive and untruthful - advertisers try to present their brands in the best possible light while being truthful - In Canada there is regulation and ASC strongly encourages honesty Corrective advertising is advertising that clarifies or qualifies previous deceptive advertising claims- Competition Bureau can require firms to run this Puffery is claims made in advertising of product superiority that can’t be proven true or untrue; no illegal but create a biased impression of products; consumers generally accept it; Although a little exaggeration may be reasonable, the goal is to create marketing communications that are both honest and that present the products in the most positive way possible -­‐ Advertising is offensive and in bad taste - what is offensive is relative; most don’t present messages that offend their target audience -­‐ Advertising creates and perpetuates stereotypes - advertising portrays certain groups of consumers in genitive ways- while there’s evidence that advertising is guilty of perpetuating stereotypes - it’s important to realize that these stereotypes already exist in the culture; advertising doesn’t create them so much as reflect them -­‐ Advertising causes people to buy things they d on’t really need- depends how you define a ‘need’ 11.2 Develop the Advertising Campaign Step 1: Understand the Target Audience -­‐ Best way to communicate is to understand the audience (their turn -ons and turnoffs) Step 2: Establish the Message and Budget Obj ectives -­‐ Advertising objectives should be consistent w/ the overall communication plan - both the underlying message and its costs need to relate to what the marketers is trying to say about the product and what the marketer is willing or able to spend Set Message Objectives -­‐ Because advertising is the most visible part of marketing, many people assume that marketing is advertising -­‐ Advertising can inform, persuade and remind -­‐ Some ads are informational- they aim to make the customer knowledgeable about features of the product or how to use it -­‐ Seeks to persuade consumers to like a brand or prefer one brand over the competition -­‐ Many ads are simply aimed at keeping the name of the brand in front of the consumer - reminding consumers that this brand is the one to c hoose Set Budget Objectives -­‐ Advertising is expensive -­‐ An objective of many firms is to allocate a % of the overall communication budget to advertising – depending on how much and what type of advertising the company can afford Step 3: Create the Ads Creative strategy is the process that turns a concept into an advertisement; gives the advertising creative the direction and inspiration they need to begin the creative process Creative brief is a guideline or blueprint for the marketing communication program that guides the creative process -­‐ It provides only the most relevant info and insights about the marketing situation, the advertising objective, the competition, and the advertising target, and the message the advertising must deliver -­‐ Role of the creative brief is to provide the spark that helps the ad agency come up with ‘the big idea,’ the visual and/or verbal concept that delivers the message in an attention - grabbing, memorable, and relevant manner Creative Element Element Options Appeals -­‐ Rational (Unique Selling Proposition) -­‐ Emotional -­‐ Reminder Advertising -­‐ Teaser Ads Execution Formats -­‐ Comparison -­‐ Demonstration -­‐ Testimonial -­‐ Slice of Life -­‐ Lifestyle Tonality -­‐ Straightforward -­‐ Humorous -­‐ Dramatic -­‐ Romantic -­‐ Apprehension/ Fear Creative Tactics and -­‐ Animation and Art Techniques -­‐ Celebrities -­‐ Music, Jingles, and Slogans Advertising Appeals -­‐ Advertising appeal is the central idea or theme of an advertising message; used to influence the consumer - Informational or rational appeals relate to consumers’ pr actical need for the product - emphasize features, benefits, often based on USP Unique Selling Proposition (USP) an advertising appeal that focuses on one clear reason why a particular product is superior -­‐ Emotional appeals focus on an emotional or social be nefit the consumer may receive from the product, such as safety, love, excitement, pleasure, respect, or approval Reminder advertising: advertising aimed at keeping the name of a brand in people’s minds to be sure consumers purchase the product as necessar y Teaser or mystery ads are ads that generate curiosity and interest in a to -be-introduced product by drawing attention to an upcoming ad campaign without mentioning the product Execution Formats Execution format describes the basic structure of the message - such as comparison, demonstration, testimonial, slice of life, and lifestyle -­‐ Comparison- explicitly names one or more competitors; risk of turning off consumers who don’t like the negative tone; many countries (not U.S.) it’s illegal; market leaders who do this are often considered by consumers to be ‘picking on the little guy; -­‐ Demonstration- is most useful when consumers are unable to identify important benefits except when they see the product in use -­‐ Testimonial- Celeb or expert states the product’s effectiveness; use of celeb endorsers is common but expensive; might also be risky esp. if the celeb endorser acts in a way that is inconsistent with the brand positioning -­‐ Slice of Life- presents a (dramatized) scene from everyday life -­‐ Lifestyle format shows a person or persons attractive to the target market in an appealing setting Tonality Tonality refers to the mood or attitude the message conveys -­‐ Straightforward: Simply present the info to the audience in a clear manner; informative ads are frequently used in radio but less often in TV -­‐ Humor: Break through advertising clutter; different cultures have different sense of humor; attracts consumers’ attention and leaves them with a pleasant feeling -­‐ Dramatic – a dramatization presents a problem and a solution in a manner that’s often exciting and suspenseful- fairly difficult challenge in 30-60 seconds -­‐ Romantic- Ads that present a romantic situation can be esp. effective at getting consumers’ attention and at selling products people associate with dating and mating -­‐ Sexy- effective when there’s a connection b/w the product and sex/ romance -­‐ Apprehension/ fear focus on physical harm or try to create a concern social harm or disapproval; can be successful if the a udience perceives there to be an appropriate level of intensity in the fear appeal Creative Tactics and Techniques -­‐ Animation and art; Celebrities (using a celeb could be a casting decision - a technique to make an ad more interest or appealing); music, jin gles and slogans Jingles are original words and music written specifically for advertising executions - not used as often as they were in the past, but many advertisers still like to set their slogan to original music at the end of a commercial (called ‘musical buttons’ or ‘tags’) Slogans link the brand to a simple linguistic device that’s memorable (jingles do the same but set the slogan to music) Step 4: Pretests What the Ads Will Say Pretesting is a research method that seeks to minimize mistakes by getting consumer reactions to ad messages before they appear in the media Step 5: Choose the Media Type(s) and Media Schedule Media planning is a problem-solving process that gets a message to a tar get audience in the most effective way -­‐ Planning decisions should include audience selection and where, when, and how frequent the exposure should be -­‐ First task: find out when and where people in the target market are most likely to be exposed to the communication -­‐ The medium choice depends on the specific target audience, objective of the message, budget -­‐ To be effective- media planer must match the profile of the target market with specific media vehicles Table 11.1 Pros and Cons of Media Vehicles Vehicle Pros Cons TV -­‐ Extremely creative and flexible -­‐ The message is quickly forgotten -­‐ Network TV is the most cost- unless it’s repeated often effective way to reach a mass -­‐ The audience is increasingly audience fragmented -­‐ Cable and satellite TV allow the -­‐ Although the relative cost o f advertiser to reach a selected group reaching the audience is low, prices at a relatively low cost are still high on an absolute basis - -­‐ A prestigious way to advertise often too high for smaller companies -­‐ Can demonstrate the product in use -­‐ Fewer people view network TV -­‐ Can provide entertainment and -­‐ People switch from station to station generate excitement and zap commercials -­‐ Message have high impact b/c of -­‐ Rising costs have led to more and the use of sight and sound shorter ads, causing m ore clutter Radio -­‐ Good for selectively targeting an -­‐ Listeners often don’t pay full audience attention to what they hear -­‐ Is head outside the home -­‐ Difficulty in buying radio time, -­‐ Can reach customers on a personal especially for national advertisers and intimate level -­‐ Not appropriate for products that -­‐ Can use local personalities must be seen or demonstrated to be -­‐ Relatively low cost, both for appreciated producing a spot and for running it -­‐ The small audiences of individual repeatedly stations means ads must be placed -­‐ B/c of short lead time, radio ads can with many different stations and be be modified quickly to reflect repeated frequently changes in the market place -­‐ Use of sound effects and music allows listeners to use their imagination to create a vivid scene News- -­‐ Wide exposure provides extensive -­‐ Most people don’t spend much time papers market coverage reading the newspaper -­‐ Flexible format permits the use of -­‐ Readership is esp. low among teens color, different sizes, and targeted and young adults editions -­‐ Short life span- people rarely look at -­‐ Provides the ability to use detailed a newspaper more than once copy -­‐ Offers a very cluttered ad -­‐ Allows local retailers to tie in with environment national advertisers -­‐ The reproduction of quality images -­‐ Readers are in the right mental is relatively poor frame to process advertisements -­‐ Not effective in reaching specific about new products, sales, etc. audiences -­‐ Timeliness; i.e. short lead time b/w placing ad and running it Mags -­‐ Audiences can be narrowly targeted -­‐ With the exception of direct mail, it’s by specialized magazines the most expensive form of -­‐ High credibility and interest level advertising, the cost of a full -page, provide a good environment for ads four-color ad in a general- audience -­‐ Advertising has a long life and is mag typically exceeds $100 000 often passed along to other readers -­‐ Long deadlines reduce flexibility -­‐ Visual quality is excellent -­‐ The advertiser must generally use -­‐ Can provide detailed product info w/ several magazines to r each the a sense of authority majority of a target market -­‐ A cluttered ad environment Directories -­‐ Customers actively seek exposure -­‐ Limited creative options to advertisements -­‐ May be lack of color -­‐ Advertisers determine the quality of -­‐ Ads are generally purchased for a the ad placement b/c larger ads get full year and can’t be changed preferential placement Out-of- -­‐ Most of the population can be -­‐ Hard to communicate complex home media reached at a low cost messages b/c of short exposure -­‐ Good for supplementing other media time -­‐ High frequency when signs are -­‐ Difficult to measure advertisement’s located in heavy traffic areas audience -­‐ Effective for reaching virtually all -­‐ Controversial and disliked in many segments of the population communities -­‐ Geographic flexibility -­‐ Can’t pinpoint specific market segments Internet Web -­‐ Can target specific audiences and -­‐ Limited to Internet users only sites individualize messages -­‐ Banners, pop-ups, unsolicited e- -­‐ Web user registration and cookies mail, etc., can be unwanted and allow marketers to track user annoying preferences and Web site activity -­‐ Declining click-through rates for -­‐ Is interactive- consumers can banners are currently less than participate in the ad campaign; can 0.03% create do-it-yourself ads -­‐ If web pages take too long to load, -­‐ An entertainment medium allowing consumers will abandon the site consumers to play games, download -­‐ Phishing: email sent by criminals to music, etc. get consumers to go to phony sites -­‐ Consumers are active participants in that will gain personal info like credit the communication process, card #s controlling what info and the amount -­‐ B/c advertisers’ costs are normally and rate of info they receive based on the number of click - -­‐ Web sites can fa cilitate both throughs, competitors may engage marketing communication and in click fraud by clicking on a transactions sponsored link -­‐ Consumers visit Web sites with the -­‐ Difficult to measure effectiveness mindset to obtain info -­‐ Banners can achieve top of mind awareness (TOMA), even without click-throughs Place- based -­‐ Effective for certain markets, such -­‐ Limited audience media as pharmaceutical companies, to -­‐ Difficult to measure effectiveness reach their target audience -­‐ In retail locations it can reach customers immediately before purchase; this provides a last opportunity to influence the purchase decision -­‐ In locations such as airports, it receives a high level of attention because of lack of viewer options Branded -­‐ Brand presented in a positive -­‐ Little control of how the brand is entertainment context positioned- is in the hands of the -­‐ Brand message present in a covert director fashion -­‐ Difficult to measure effectiveness -­‐ Less intrusive and thus less likely to -­‐ Costs of placement can be very be avoided high -­‐ Connection with a popular movie plot or TV program and with entertaining characters can help a brand’s image -­‐ Can build emotional connection with the audience -­‐ Can create a memorable association the serves to enhance brand recall Advergaming -­‐ Companies can customize their own -­‐ Audience limited to gamers games or incorporate brands into existing popular games -­‐ Some game producers now actively pursue tie-ins with brands -­‐ Millions of gamers play an average of 40 hours per game before they get sick of it Mobile -­‐ A large variety of different formats -­‐ Consumers may be unwilling to Phones using different mobile phone apps receive messages through their -­‐ Millions of consumers have mobile phones phones ‘in their hands’ Where to Say It: Traditional Mass Media -­‐ TV, Radio, Newspapers, Magazines (new technology such as selective binding allows publishers to personalize their editions so that they can include ads for local businesses in issues they mail to specific locations) Where to Say It: Digital Media Digital Media is media that are digital rather than analogue, including web sites, mobile or cellular phones, and digital video such as YouTube Owned, Paid, and Earned Media Owned media includes Internet sites such as web sites, blogs, Facebook, twitter, accounts that are owned by an advertiser Paid media are Internet media such as display ads, sponsorships, and paid key word searches that are paid for by an advertiser Earned media is word-of-mouth (WOM) or buzz using social media where the advertiser has no control Web Site Advertising -­‐ No longer a novelty -­‐ Internet provides new ways to finely tune target customers -
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