Lecture Marketing (12/e): Chapter 18 – Kerin, Hartley, Rudelius

Chapter 18 – Advertising, sales promotion, and public relations. After reading chapter 18, you should be able to: Explain the differences between product advertising and institutional advertising and the variations within each type; describe the steps used to develop, execute, and evaluate an advertising program; explain the advantages and disadvantages of alternative advertising media.

LO 18-2

LEARNING OBJECTIVES (LO)

AFTER READING CHAPTER 18, YOU SHOULD BE ABLE TO:

LO 18-1

Describe the steps used to develop, execute, and evaluate an advertising program.

Explain the differences between product advertising and institutional advertising and the variations within each.

LO 18-3 Explain the advantages and

disadvantages of alternative advertising media.

LEARNING OBJECTIVES (LO)

AFTER READING CHAPTER 18, YOU SHOULD BE ABLE TO:

LO 18-4 Discuss the strengths and weaknesses

of consumer-oriented and trade-oriented sales promotions.

Recognize public relations as an important form of communications.

LO 18-5

WHAT IS THE KILLER APP OF

ADVERTISING? TELEVISION!

• Competitive (or Persuasive)

• Reminder

 Product Advertisements

• Reinforcement

DiGiorno, Fidelity, and Dove

What is the type and purpose of each ad?

LO 18-1

Dial Soap

What is the type and purpose of this ad?

LO 18-1

Chevron and Bridgestone

What is the type and purpose of each ad?

LO 18-1

Got Milk? and U.S Army

What is the type and purpose of each ad?

LO 18-1

DEVELOPING THE ADVERTISING PROGRAM

FIGURE 18-1 The Super Bowl delivers a huge

audience if you can afford the cost of placing

an ad

MARKETING INSITE

See Your Favorite Super Bowl Ads

Again, and Again!

LO 18-2

DEVELOPING THE ADVERTISING PROGRAM

DESIGNING THE ADVERTISEMENT

LO 18-2

 Message Content

• Informational Element

• Persuasive Element

 Types of Appeals

• Fear Appeals

• Sex Appeals

• Humorous Appeals

World Wide Fund, Candie’s, and Geico

What is the appeal and purpose of each ad?

LO 18-2

DEVELOPING THE ADVERTISING PROGRAM

DESIGNING THE ADVERTISEMENT

LO 18-2

 Creating the Actual Message

• Celebrity Spokespeople

• Ideas and Artwork

K-Swiss 72andSunny

DEVELOPING THE ADVERTISING PROGRAM

SELECTING THE RIGHT MEDIA

FIGURE 18-2 Television, direct mail, and

newspapers account for more than 60% of all

advertising expenditures ($ in millions)

DEVELOPING THE ADVERTISING PROGRAM

SELECTING THE RIGHT MEDIA

USING MARKETING DASHBOARDS

What is the Best Way to Reach 1,000 Customers?

LO 18-2

Cost per Thousand (CPM) Impressions

FIGURE 18-3 Advertisers must consider the

advantages and disadvantages of the many

media alternatives

DEVELOPING THE ADVERTISING PROGRAM

DIFFERENT MEDIA ALTERNATIVES

LO 18-3

 Television

• Zero TV

• Out-of-Home TV

DEVELOPING THE ADVERTISING PROGRAM

DIFFERENT MEDIA ALTERNATIVES

DEVELOPING THE ADVERTISING PROGRAM

DIFFERENT MEDIA ALTERNATIVES

LO 18-3

• Satellite Radio

• Drive Times

 Radio

DEVELOPING THE ADVERTISING PROGRAM

DIFFERENT MEDIA ALTERNATIVES

LO 18-3

• Regional Issues

 Magazines

DEVELOPING THE ADVERTISING PROGRAM

DIFFERENT MEDIA ALTERNATIVES

LO 18-3

 Newspapers

• Falling Circulation & Ad Revenue

• New Types of News Organizations

• Online and Mobile Editions

DEVELOPING THE ADVERTISING PROGRAM

DIFFERENT MEDIA ALTERNATIVES

LO 18-3

 Yellow Pages

DEVELOPING THE ADVERTISING PROGRAM

DIFFERENT MEDIA ALTERNATIVES

FIGURE 18-4 Google, Microsoft, and Yahoo!

have the largest shares of Internet searches

and offer opportunities for online advertising

MAKING RESPONSIBLE DECISIONS

Who is Responsible for Click Fraud?

LO 18-3

 Pay-to-Read

 Click Bots

 Webtipping

DEVELOPING THE ADVERTISING PROGRAM

DIFFERENT MEDIA ALTERNATIVES

LO 18-3

 Outdoor

Advertising

DEVELOPING THE ADVERTISING PROGRAM

DIFFERENT MEDIA ALTERNATIVES

DEVELOPING THE ADVERTISING PROGRAM

SCHEDULING THE ADVERTISING

DEVELOPING THE ADVERTISING PROGRAM

SCHEDULING THE ADVERTISING

LO 18-3

 Approaches

• Continuous (Steady) Schedule

• Pulse (Burst) Schedule

• Flighting (Intermittent) Schedule

EXECUTING THE ADVERTISING PROGRAM

PRETESTING THE ADVERTISING

EXECUTING THE ADVERTISING PROGRAM

CARRYING OUT THE ADVERTISING PROGRAM

LO 18-3

 Full-Service Agency

 Limited-Service Agencies

 In-House Agencies

FIGURE 18-5 Alternative structures of

advertising agencies used to carry out the

advertising program

ASSESSING THE ADVERTISING PROGRAM

CARRYING OUT THE ADVERTISING PROGRAM

FIGURE 18-6 Sales promotions can be used to achieve many objectives

SALES PROMOTION

CONSUMER-ORIENTED SALES PROMOTION

LO 18-4

 Deals

SALES PROMOTION

CONSUMER-ORIENTED SALES PROMOTION

LO 18-4

 Premiums

• Self-Liquidating: Free Toy in Happy Meal

• Deal-Prone & Value Seeing Consumers

SALES PROMOTION

CONSUMER-ORIENTED SALES PROMOTION

LO 18-4

 Contests

SALES PROMOTION

CONSUMER-ORIENTED SALES PROMOTION

LO 18-4

 Samples

SALES PROMOTION

CONSUMER-ORIENTED SALES PROMOTION

LO 18-4

 Loyalty Programs

SALES PROMOTION

CONSUMER-ORIENTED SALES PROMOTION

LO 18-4

 Point-of-Purchase Displays

SALES PROMOTION

CONSUMER-ORIENTED SALES PROMOTION

LO 18-4

 Rebates

SALES PROMOTION

CONSUMER-ORIENTED SALES PROMOTION

LO 18-4

 Product Placement

SALES PROMOTION

TRADE-ORIENTED SALES PROMOTION

LO 18-4

 Trade-Oriented Sales Promotion

 Allowances and Discounts

INCREASING THE VALUE OF PROMOTION

LO 18-5

 Self-Regulation

 Building Long-Term Relationships

GOOGLE, INC.: THE RIGHT ADS

AT THE RIGHT TIME

VIDEO CASE 18