Advertising & Promotion

1. Advertising & Promotion

2. The Core Marketing Functions There are 7 primary functions within marketing. All are part of the goal of satisfying customer needs while earning a profit. • Product/Service Management • Marketing Information Management • Market Planning • Promotion • Pricing • Selling • Channel Management Product Customer

3. Promotion/Advertising 10 Funny commercials https://www.youtube.com/watch?v=HE9nLWFZ6ac Watch out for: • Use of Humor • Celebrities • Product visibility/mention • Animals/Children • Memorability - Does it inform?

4. Promotion/Advertising Television changed how promotion was delivered to customers and is the media we most often associate with Product Advertising. The internet is increasingly prominent What are the other kinds of media where advertising is often placed?

5. 2015 U.S. Advertising Spending by Media Type

6. Marketing Spend by Type 2010 vs. 2017

7. Promotion/Advertising Vocabulary Promotion – Decisions related to advertising, personal selling, sales promotion and publicity used to attract customers Personal Selling – promotion which features direct contact between customer and salesperson Non-Personal Selling/Promotion – Other promotion which is more broad and not direct to a specific individual Promotional Mix – A combination of promotion strategies and cost effective allocation of marketing resources

8. Marketing Promotion/Advertising What are the reasons that companies would advertise and promote their product? To Persuade To Inform To Enhance Reputation To Say What’s wrong with a competitor To Inspire It can be product or company specific

9. Marketing Promotion/Advertising Promotion has 5 fairly distinct types 1. Personal Selling – sales representative Non-personal 2. Advertising 3. Direct Marketing (the internet enables this to be both personal and non-personal 4. Sales Promotion – pretty much anything not covered above 5. Public Relations – Image management (product or company)

10. Commercial of the Day Check out these foreign commercials https://matadornetwork.com/life/hilarious-foreign-commercials/ How much does language matter? Has to effective even if people don’t know the reference? How have they made the commercial “local”?

11. Promotion/Advertising Advertisers don’t have limitless resources A business needs to consider how much to spend on promoting its brand and its products. What things would you think about if you were launching a new product and had to decide how much to spend on promotion?

12. Promotion/Advertising Marketers will consider: • Total amount of budget available to invest • cost vs. effectiveness • Promotional Mix  considers the optimal mix of the 5 types of promotion

13. Promotion/Advertising – Effectiveness vs. Cost

14. Promotion/Advertising Vocabulary Push vs. Pull Promotion: Push Promotion is directed at channel partners who are encouraged to sell the product to customers Pull Promotion is directed at consumers Trade Promotion – Promotion designed to enlist the support of manufacturers, wholesalers and retailers Customer Promotion – Promotion designed to encourage customers or potential customers to buy products or service

15. Visual Merchandising – Chapter 18 Visual Merchandising – what do you think this concept means for marketing? All the physical elements a merchandiser uses to project the image of the product Think store layout, lighting, customer service, displays, color, signs, store location, etc.

16. Visual Merchandizing for your Product Answer the following as a team; • Is your product displayed and/or sold in a physical store? If yes, describe the attributes of that store, including special features that might promote the image of the product – Think about displays, store layout, specific colors used, how customers are served, signage, location of the store, etc. (The Uber team can try to do Uber or select another product for this activity.) 2. Explain how what you described above might make the product more appealing, create a specific image with the customer or serve as part of how the product functions

17. Marketing Promotion/Advertising Promotion has 5 fairly distinct types 1. Personal Selling – sales representative Non-personal 2. Advertising 3. Direct Marketing (the internet enables this to be both personal and non-personal 4. Sales Promotion – pretty much anything not covered above 5. Public Relations – Image management (product or company)

18. Project Advertising Spend 2015 - 2021

19. Top 10 Advertisers of 2014 (in the U.S.) Which type of companies would you expect to appear on this list? 10. Disney - $2.1B (Frozen) 9. L’Oreal - $2.2 B 8. Fiat Chrysler - $2.2 B (Fiat 500; Sean “Diddy” Combs Ad) 7. American Express - $2.4 B (Tina Fey, New card introduction) 6. Ford Motor - $2.5 B (Super Bowl) 5. Verizon - $2.5 B (New plan introduction) 4. Comcast - $3.0 B (Customer Service Improvements) 3. General Motors - $3.1 B 2. AT & T - $3.3 B (Network Improvements) 1. Proctor & Gamble - $4.6 B (Cutting $500M; Switch to Online)

20. Advertising What are some common things you see from the Top 10 list? - Huge companies – big sales/big advertising spend - Competitive industries - New Product introductions/Celebrity roll out - Important message to customers – fixing problems Another data point Pharmaceutical companies spend as much on advertising as they do on research and development

21. Advertising Vocabulary for Chapter 19/20 on Advertising: Promotional Advertising – Consumer or business-to-business advertising to encourage the purchase or use of a product. Ultimate goal is to increase sales Media – The means or instruments through which advertising is conveyed

22. Advertising What are the four main categories of media? Print Broadcast Online Specialty

23. Advertising – Print Media What are primary places you would expect to see Print Media? Newspapers Magazines Direct Mail Outdoor (Billboard & Transit) Directory

24. Advertising – Print Media Components of a Print Ad: • Headline = attracts readers attention • Copy = the selling message • Illustrations = photo, drawing or graphic, integrates with the headline and copy • Signature = distinctive identification with the business, may include a slogan • Color, Font = make the advertising stand out or appeal to the reader

25. Advertising – Print Media Let’s work on a sample ad together to practice the vocabulary and see what we can find about the messaging Direct Mail Piece from Dr. Shah for Congress: (Demographic)? Headline? Copy? Illustrations? Color?

26. Advertising – Print Media Print Media Exercise Done with a partner – someone not from your project group We will focus on analyzing Newspaper, Magazine and Direct Mail examples of Advertising Select a print ad from the material available

27. Advertising What are the four main categories of media? Print Broadcast Online Specialty

28. Advertising – Print Media What are the 3 primary places you would expect to see/hear Broadcast Media? Television Radio Streaming Video (Difficult to differentiate streaming as broadcast or online – but works like broadcast + mobility)

29. Advertising – Broadcast Media Television is the most used advertising in terms of $ spent Television gives the best sensory experience for the viewer: Pros: HD clarity, sound, ability to show action Cons: May need to see the ad multiple times to get full message (Subliminal Advertising @ the movies; Product placement) We can analyze Broadcast Media in much the same way we did Print How should we think about Demographics/Target Market for TV ads?

30. Advertising - Broadcast Media How will the analysis of a TV ad be different than print? • Not static • Spoken word & perhaps some written • Varying length (up to 30 minute infomercials)

31. Advertising – Broadcast Media How will the analysis be the same? • Tied to a specific broadcast (viewer = demographic/target market) • Headline = attention grabbing feature (Usually?) • Copy = the selling message • Illustrations = People & setting + photos, drawings or graphics; integrates with the headline and copy – endless possibilities • Signature = distinctive identification with the business, may include a slogan or tagline • Color, Font = have advertising stand out or appeal to viewer

32. Advertising –Broadcast Media E-Trade Baby (debuted on the SuperBowl) https://www.bing.com/videos/search?q=Tv+commercials+for+etrade+baby&view=detail&mid=6A90A7D42E98ED059C126A90A7D42E98ED059C12&FORM=VIRE Demographic/Target Market: Shown during the Super Bowl? Shown during a golf tournament broadcast? Copy What does he say/what’s the message? What about the voiceover at the end?

33. Advertising – Broadcast Media Illustrations: What’s unique about the people, setting, images etc.? How are the graphics and words at the end used? Signature: Any noticeable tagline, logo, etc.? Bonus Baby Commercial https://www.bing.com/videos/search?q=Tv+commercials+for+etrade+baby&&view=detail&mid=DEF89012623C78D2A0EBDEF89012623C78D2A0EB&rvsmid=6A90A7D42E98ED059C126A90A7D42E98ED059C12&FORM=VDQVAP

34. Broadcast Advertising – Commercial Analysis (ad links and worksheet posted to Edline Assignments) 1. Proctor & Gamble Olympics Commercial https://www.bing.com/videos/search?q=proctor+and+gamble+commercials&&view=detail&mid=E53E3A3B5595EC14B6F5E53E3A3B5595EC14B6F5&&FORM=VRDGAR 2. Pharmaceutical Product – Celebrex https://www.bing.com/videos/search?q=celebrex+commercials&&view=detail&mid=44C9225EE7FB5DA4DF6F44C9225EE7FB5DA4DF6F&&FORM=VRDGAR 3. Geico Insurance https://www.bing.com/videos/search?q=geico+commercials+2018&&view=detail&mid=9E8F56348CB39B0AF8689E8F56348CB39B0AF868&&FORM=VRDGAR

35. Advertising Additional Vocabulary Media Planning – The process of selecting which advertising media to use and the time and space in which it should appear Cost per Thousand (CPM) – the media cost of exposing 1,000 readers or viewers to an advertising impression Advertising Campaign Advertising Agency