MARKETING 4.02 PART 1 Advertising Media & Promotion

1. MARKETING 4.02 PART 1 Advertising Media & Promotion

2. ADVERTISING MEDIA = Channels of communication used by businesses for delivering promotional messages to target groups of consumers. Media “channels” = Information travels through them to consumer

3. Advertising Campaign A series of related advertisements focusing on a common theme, slogan, and set of advertising appeals.

4. Steps in Creating an Advertising Campaign Determine the advertising objectives. Make creative decisions. Make media decisions. Evaluate the campaign.

5. Setting Objectives:The DAGMAR Approach Goal of Advertising Objectives Define Target Audience Define the Time Frame for Change Define Desired Percentage Change

6. Creative Decisions Identify Product Benefits Components of Creative Decisions Develop and Evaluate Advertising Appeals Execute the Message Evaluate the Campaign’s Effectiveness

7. Identify Product Benefits “Sell the Sizzle, not the Steak” Sell product’s benefits, not its attributes A benefit should answer “What’s in it for me?” Ask “So?” to determine if it is a benefit

8. Advertising Appeal Reason for a person to buy a product.

9. Common Advertising Appeals Profit Health Product saves, makes, or protects money Love or romance Appeals to body-conscious or health seekers Used in selling cosmetics and perfumes Fear Social embarrassment, old age, losing health Admiration Reason for use of celebrity spokespeople Convenience Used for fast foods and microwave foods Fun and pleasure Key to advertising vacations, beer, parks Vanity and egotism Used for expensive or conspicuous items Environmental Consciousness Centers around environmental protection

10. Unique Selling Proposition Desirable, exclusive, and believable advertising appeal selected as the theme for a campaign.

11. Executing the Message Scientific Slice-of-Life Musical Lifestyle Common Executional Styles Demon- stration Spokes-person/ Testimonial Mood or Image Fantasy Real/ Animated Product Symbols Humorous

12. Learning Objective Describe media evaluation and selection techniques.

13. Media Types Newspapers Major Types of Advertising Media Magazines Radio Television Outdoor Internet Alternative Media

14. Advertising Spending for 1999

15. Types of publications Newspapers Magazines

16. TYPES OF ADVERTISING MEDIA Publications • Newspapers • Newspapers are divided into sections that are useful in promoting different kinds of products • Reach a large audience • Just about anyone can place an ad in a newspaper

17. Newspapers vary by…. How often they are published (daily, weekly) Their size (broadsheet, tabloid) What geographic areas they cover (national, large city, suburban) Whom they are intended to target (general population, business people, Hispanics)

18. Newspapers Advantages Disadvantages • Limited demographic selectivity • Little color • May be expensive • Low pass-along rate • Clutter • Mass market medium • Year-round readership • Geographic selectivity • Immediacy • High individual market coverage • Short lead time

19. Cooperative Advertising An arrangement in which the manufacturer and the retailer split the costs of advertising the manufacturer’s brand.

20. TYPES OF ADVERTISING MEDIA Publications • Magazines • Appeal to a very specific target audience • i.e. Golf Digest for golfers, Teen Vogue for teenage girls • Can be classified based on the audience they reach: • Consumer magazines • For personal enjoyment – People, Sports Illustrated • Business magazines • Appeal to individuals in different industries or a general population of workers – Business Week, BrandWeek

21. Types of magazines Consumer magazines • Sports Illustrated • Teen Vogue • US Weekly Business magazines • Business Week • Fortune • Agri-Marketing

22. Magazines Advantages Disadvantages • Higher cost per contact • Long-term advertiser commitments • Slow audience build-up • Limited demonstration capabilities • Lack of urgency • Long lead time • Good reproduction • Demographic selectivity • Regional/local selectivity • Long advertising life • High pass-along rate

23. Two categories of broadcast media Television Radio

24. TYPES OF ADVERTISING MEDIA Broadcast Media • Radio • Effective and affordable way to reach your target market • Targets a specific audience through he stations format • Trends: • National Radio • Broadcasting over the Internet

25. Radio Advantages Disadvantages • Selectivity and audience segmentation • Immediate and portable • Geographic flexibility • Entertainment carryover • Short-term ad commitments • No visual treatment • Short advertising life • High frequency to generate retention • Commercial clutter • Background distractions

26. TYPES OF ADVERTISING MEDIA Broadcast Media – considered a “time” media not a “space” media because the ads last only as long as they are on the air • Television (Mass Media)+ • Experience color, sound, and action making them easy to remember and believable • The most influential, best selling type of advertising media • Channels are chosen based on type of audience and cost • Network TV (ABC, NBC, CBS, FOX) reach a broad audience but are extremely expensive • Cable TV channel s target a more specific audience and are less expensive • Local TV targets a specific geographic and is the least expensive

27. Purchasing options for TV advertising Advertise on cable/satellite TV Local TV advertising 30 second or 60 second commercials Infomercial, basically a 30-minute commercial Home shopping network, (QVC, HSN) Sponsor a specific television program, (Hallmark Hall of Fame)

28. TV Advertising Network Local relatively inexpensive targets a small, highly specific audience popular among small businesses extremely expensive targets a very broad audience popular among national/large companies

29. Television Advantages Disadvantages • Short life of message • Expensive with high campaign cost • Little demographic selectivity with network • Long-term advertiser commitments • Long lead times • Clutter • Wide diverse audience • Low cost per thousand • Creative and demonstrative • Immediacy of messages • Entertainment carryover • Demographic selectivity with cable

30. TYPES OF ADVERTISING MEDIA Out-of-Home • Exists to reach people when they are away from home • Ex. Billboards, Signs, Transit posters (on things that move – i.e. bus, taxi, blimp, etc.), humans holding signs, etc.

31. Types of out-of-home media Billboards are panels or boards to which advertising posters are adhered. Side of building paintings, often in downtown business districts. • These are largescale—several stories tall—and designed for long-term use. Spectaculars, large, elaborate electrical signs Transit posters which cover buses and bus shelters Indoor billboards which cover subways and office buildings Human directionals, people wearing or holding signs to advertise a business or product Sky ads--blimps, hot air balloons, and airplanes carrying banners.

32. Outdoor Media Advantages Disadvantages • High exposure frequency • Moderate cost • Flexibility • Geographic selectivity • Broad, diverse market • Short message • Lack of demographic selectivity • High “noise” level

33. Web advertising The web has become the fastest growing media outlet. Can target a very specific audience Can track user response (find out who is responding to your ads online). Allows the building of brand awareness Allows extension of advertising to reach beyond local market. To advertise online, create a company web site where consumers could learn about the business, find contact information and locations, and place orders online. Can place business ads on other people’s web sites or on a portal such as Google or AOL—popular starting points for surfing the Web. • When your online ad is clicked, people would be directed to your web site, where they might become your latest customers.

34. Internet and World Wide Web Advantages Disadvantages • Difficult to measure ad effectiveness and ROI • Ad exposure relies on “click through” • Not all consumers have access to internet • Fast growing • Ability to reach narrow target audience • Short lead time • Moderate cost

35. TYPES OF ADVERTISING MEDIA The Internet • Has became the fastest growing media outlet • Can target a specific audience and track response • Ex. Business websites, ads on others’ websites or search engines, etc.

36. Alternative Media Fax Machines Video Shopping Carts Examples of Alternative Media Computer Screen Savers Interactive Kiosks Ads in Movies and Videos

37. TYPES OF ADVERTISING MEDIA Other Media (includes anything that has not been discussed previously) • Directory Advertising – informs on how to contact the business with phone number, address or website • Phone books (Yellow Pages) can target specific geographics • Specialty Media – reminds people of your business, must have three criteria: • Have the businesses name or logo on it • Must be a useful item – i.e. pen, shirt, cap, etc • Must be given away

38. TYPES OF ADVERTISING MEDIA Other Media (cont.) • Telemarketing • Calling prospective customers and providing a 1-800 number for them to call • Movie Theater Advertising • Before the film, posters & standups in the lobby Other Media (cont.) • DVD & CD-ROM Advertising • Free to introduce the product to the customer • Product Placement • Manufacturers pay for the their products to be used as props in movies, TV, and computer games

39. Direct-mail advertising Printed mail • Small businesses have found that printed mail is good for advertising • It’s relatively inexpensive • People may throw the ad away with the junk mail • Must send to the right people • Ex: Want home repair company advertisements to go to home owners, not apartment renters Electronic mail • Delivered over computer networks to an e-mail address • Electronic-mail advertising is popular with businesses because it’s quick, easy, and inexpensive. • The e-mail could be routed to a spam folder • Have customers to sign up to receive your electronic newsletters and advertisements, guaranteeing permission to send e-mails to them (aka opt-in marketing)

40. TYPES OF ADVERTISING MEDIA Direct Mail • Printed Mail • Ex. Sales letters, catalogs (niche), flyers, postcards, etc. • Small businesses like to use because it is relatively inexpensive • Can be viewed as junk mail if it is not sent to the right people • Electronic Mail (e-mail) • Popular because it is quick, easy and inexpensive • Can end up in SPAM folders - to avoid this ask customers to sign up for newsletters and ads (opt-in email marketing)

41. Describe Specialty advertising Reminds people about your business. Must meet three criteria to qualify • Must have business’s name or logo • Must be a useful item (pen, hat, bag) • Must be given away

42. Use of directory advertising Informs people about how to contact a particular business, often with a telephone number, street address, or Web address. Yellow Pages target a specific geographic area Other directories target a specific group of people (ex: college students or church members.)

43. Use of movie theater advertising On and off the screen • Advertisements on the screen • Posters, stand-ups, and possible merchandise (3-D glasses) in the lobby.

44. Use of product placement advertising Product manufacturers pay millions of dollars for the right to use their brands as movie props. Company hopes viewers will become just as loyal to their products as the movie stars Ex: Wayne’s World and Pizza Hut; Talladega Nights and Mountain Dew

45. Use of Telemarketing for advertising Calling prospective customers on the telephone Providing a number for people to call Companies purchase 800-numbers so that customers can call toll free, and most companies choose numbers that are easy for people to remember.

46. Use of videotapes, DVDs and CD-ROM advertising Disney allows customers, upon request, to receive a free DVD that introduces them to the Disney theme parks and resort hotels • The goal of Disney is that customers will be so amazed they will call or go online immediately to purchase their Disney vacation package. Customers can receive free computer software CD-ROMs introducing them to a particular program or Internet service in the hopes that they will purchase the real thing. • Ex: AOL did this years ago for Internet connection

47. TRENDS IN ADVERTISING MEDIA Ads in Virtual Worlds • Companies creating avatars for businesses – i.e. Second Life SMS Text • Sending ads through text messages • Cheap and can target a specific audience Consumers avoiding ads • Do not call list • Spam filters • Pop up blockers • DVR – but do you still catch the brands while you are fast forwarding?

48. Trends that affect advertising media Podcasting Audio – This involves delivering programming via downloadable online audio that can be listened to on music players, such as Apple’s iPod. Many news websites and even other information site, such as blogs, offer free downloadable audio programming. Podcasting Video – While audio downloading has been available for some time, the downloading of video to small, handheld devices, including cellphones, is in its infancy. Many television networks are now experimenting with making their programming available for download, albeit, for a fee. RSS Feeds – This is an Internet information distribution technology that allows for news and content to be delivered instantly to anyone who has signed up for delivery. Clearly those registering for RSS feeds represent a highly targeted market since they requested the content.

49. Trends that affect advertising media (cont.) Networked Gaming – While gaming systems have been around for some time, gaming systems attached to the Internet for group play is relatively new and becoming more practical as more people move to faster Internet connections. This type of setup will soon allow marketers to insert special content, such as advertising, within game play. For marketers these new technologies should be monitored closely as they become accepted alternatives to traditional media outlets. While these technologies are currently not major outlets for advertising, they may soon offer such opportunity. As these technologies gain momentum and move into mainstream acceptance marketers may need to consider shifting advertising spending. Marketers should also be aware that new media outlets will continue to emerge as new applications are developed. The bottom line for marketers is they must stay informed of new developments and understand how their customers are using these in ways that may offer advertising opportunities.

50. Media Selection Considerations Cost per Contact Factors Influencing Media Mix Decisions Reach Frequency Audience Selectivity