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ch 11

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MKTG 2030
Ben Kelly

Chapter 11: Advertising, Public Relations, Promotions, Direct Marketing, and Personal Selling 11.1 Advertising: The Image of Marketing Types of Advertising 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 don’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 media 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 research 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 for 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 don’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 Objectives ­ 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 choose 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’ practical 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 benefit 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 necessary 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 audience 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, jingles 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 target 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 ­ The message creative and flexible is quickly forgotten unless it’s ­ Network TV is repeated often the most cost-effective way to reach ­ The audience a mass audience is increasingly fragmented ­ Cable and ­ Although the satellite TV allow the advertiser to relative cost of reaching the reach a selected group at a audience is low, prices are still high relatively low cost on an absolute basis- often too high ­ A prestigious for smaller companies way to advertise ­ Fewer people ­ Can view network TV demonstrate the product in use ­ People switch ­ Can provide from station to station and zap entertainment and generate commercials excitement ­ Rising costs ­ Message have have led to more and shorter ads, high impact b/c of the use of sight causing more clutter and sound Radio ­ Good for ­ Listeners often selectively targeting an audience don’t pay full attention to what they ­ Is head outside hear the home ­ Difficulty in ­ Can reach buying radio time, especially for customers on a personal and national advertisers intimate level ­ Not ­ Can use local appropriate for products that must personalities be seen or demonstrated to be ­ Relatively low appreciated cost, both for producing a spot and ­ The small for running it repeatedly audiences of individual stations ­ B/c of short means ads must be placed with lead time, radio ads can be modified many different stations and be quickly to reflect changes in the repeated frequently market place ­ Use of sound effects and music allows listeners to use their imagination to create a vivid scene News- ­ Wide exposure ­ Most people papers provides extensive market coverage don’t spend much time reading the ­ Flexible format newspaper permits the use of color, different ­ Readership is sizes, and targeted editions esp. low among teens and young ­ Provides the adults ability to use detailed copy ­ Short life span- ­ Allows local people rarely look at a newspaper retailers to tie in with national more than once advertisers ­ Offers a very ­ Readers are in cluttered ad environment the right mental frame to process ­ The advertisements about new products, reproduction of quality images is sales, etc. relatively poor ­ Timeliness; i.e. ­ Not effective in short lead time b/w placing ad and reaching specific audiences running it Mags ­ Audiences can ­ With the be narrowly targeted by specialized exception of direct mail, it’s the most magazines expensive form of advertising, the ­ High credibility cost of a full-page, four-color ad in a and interest level provide a good general- audience mag typically environment for ads exceeds $100 000 ­ Advertising has ­ Long deadlines a long life and is often passed along reduce flexibility to other readers ­ The advertiser ­ Visual quality is must generally use several excellent magazines to reach the majority of a ­ Can provide target market detailed product info w/ a sense of ­ A cluttered ad authority environment Directories ­ Customers ­ Limited actively seek exposure to creative options advertisements ­ May be lack of ­ Advertisers color determine the quality of the ad ­ Ads are placement b/c larger ads get generally purchased for a full year preferential placement and can’t be changed Out-of- ­ Most of the ­ Hard to home population can be reached at a low communicate complex messages media cost b/c of short exposure time ­ Good for ­ Difficult to supplementing other media measure advertisement’s audience ­ High frequency ­ Controversial when signs are located in heavy and disliked in many communities traffic areas ­ Can’t pinpoint ­ Effective for specific market segments reaching virtually all segments of the population ­ Geographic flexibility Internet Web ­ Can target ­ Limited to sites specific audiences and individualize Internet users only messages ­ Banners, pop- ­ Web user ups, unsolicited e-mail, etc., can be registration and cookies allow unwanted and annoying marketers to track user preferences ­ Declining click- and Web site activity through rates for banners are ­ Is interactive- currently less than 0.03% consumers can participate in the ad ­ If web pages campaign; can create do-it-yourself take too long to load, consumers will ads abandon the site ­ An ­ Phishing: email entertainment medium allowing sent by criminals to get consumers consumers to play games, download to go to phony sites that will gain music, etc. personal info like credit card #s ­ Consumers are ­ B/c advertisers’ active participants in the costs are normally based on the communication process, controlling number of click-throughs, what info and the amount and rate competitors may engage in click of info they receive fraud by clicking on a sponsored link ­ Web sites can ­ Difficult to facilitate both marketing measure effectiveness communication and transactions ­ Consumers visit Web sites with the mindset to obtain info ­ Banners can achieve top of mind awareness (TOMA), even without click-throughs Place- based ­ Effective for ­ Limited media certain markets, such as audience pharmaceutical companies, to reach ­ Difficult to their target audience measure effectiveness ­ 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 ­ Little control of entertainmen presented in a positive context how the brand is positioned- is in t ­ Brand message the hands of the director present in a covert fashion ­ Difficult to ­ Less intrusive measure effectiveness and thus less likely to be avoided ­ Costs of ­ Connection placement can be very high 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 ­ Audience customize their own games or limited to gamers incorporate brands into existing
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