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Advertisingisonly
ItdoesNOT
Advertisingtriesto
Advertisingismostimportant
forproductsandservicesthat
are:
GoalsofAdvertising:
Bothindustrialandnon
industrialconsumersneed
Advertisinginformsabout
Positioningstatements
Visualmarketingactivity
Onepartofmarketing
Affecteverypurchasewemake
Influenceconsumerchoice
identical
massmarketed(manyplaces)
easytodescribe
lowpriced
new
heavilycompetitive
brandawarenessandpositioning
brandtrial
brandpreference
brandreminder
brandrepositioning
Toknowaboutitbeforetheycanbuyit
name
availability
benefits
appearance
orderinginformation
Pointoutthedifferencesamong
competitors
BrandTrialassumption:
Manybrandtrialadsinclude
Brandpreferencefocuseson
the(alsofromchapter1)
Whydotheyinclude
statementslikemost
popularandnumber1
Endorsement
Celebritieswillendorse
Brandreminderusedwhen
Brandrepositioning
Brandrepositioningoften
neededinthisstageofthe
PLC
Dangerinrepositioning
Ifonetriesitandlikesit,theyllbuyit
Acouponorsamples
ValueEquation
Peoplearesheep
Statementbyarecognizedcelebritythat
theyusethebrand
Almostanyproduct
Olderbrandsareattackedbynew
competitors
Marketerslookfornewtarget
consumers
Decision
Alienatetheoldtargetmarket
CreatingtheMessage
Advertisingisaformof
Communicationmodel
Intent(goals)
Communication
intent
message
media
reception
action
brandawarenessandpositioning
brandtrial
brandpreference
brandreminder
brandrepositioning
Theadvertisingagency
Oftenthecompanyitselfdoes
notcreatetheadvertising;who
does
Adagenciesdothefollowing
1.buymedia
2.create
3.place
4.monitoreffectiveness
Initially,newspapersand
Salesoftheperiodical
magazinesreceivedrevenue
onlyfrom
Adagenciesboughtadvertising 85%
forhowmuch%ofprice
Regularcompaniesbought
100%
advertisingforhowmuch%of
theprice
Thusadagenciesmademoney
from
Thereforebusinessespaidthe
sameforadvertisingspace
whetherithadused
Todayclientspayfor
Message:intenttomessage
UniqueSellingProposition
Bigidea
SWOT
Advertisingappeals
Thesavingsintheircostsofads
Anagencyofnot
1.space
2.time
3.Creativity
1.finduniquesellingproposition
2.selectanappealforTarget
Market
3.createmessagefortheselected
media
Featureorbenefitthatcannotbe
duplicated
MessagethatwillcommunicateUSPto
T.M.
1.Strength
2.Weakness
3.opportunities
4.Threats
1.biological
Biological
Emotional
Rational:Focuseson
Stresses:
Rationalappealmostlikelyto
use
SocialAppeals:Focuseson
Examples
Socialappealwilloftensetup
2.emotional
3.rational
4.social
Healthandsecurity:lowerlevelneeds
Promises:
1.love
2.fun
3.adventure
4.romance
Reasoningabilities
1.convenience
2.costsavings
3.safety
4.warranties
5.easeofpurchase
Valueequationtoproveworth
Thewaysocialpressuresinfluence
consumerbehaviour
1.beauty
2.bodyshape
3.socialbehaviour
Negativesituation
SelectingtheMedia
Amedium
FactorstodetermineMedium
Carriesamessagetoanaudience
reach
frequency
selectivity
durability
leadtime
mechanicalrequirements
clutter
costs
Reach
Numberofpeoplewhoareexposed
Mostmediasettheirprices
Basedontheircirculationoraudience
Frequency
Numberoftimesmessagewillbe
seenorheard
Frequencyandreachcombineto Numberoftimesmessagewasseenor
tellyou:
heard
Selectivity
Abilityofthemediumtofocusona
targetmarket
Durability
Lengthoftimeanadvertisementlasts
Leadtime
Theamountoftimerequiredtocreate
anad
Mechanicalrequirements
Technicalcomplexityofpreparingthe
Clutter
InternalClutter
ExternalClutter
Costs
Costsperthousands
ads.
Canaffectcosts
Competitionfortheaudiences
attention
Competitionwithinthesamearea,or
medium
Competitionoccurringinthereal
worldwhiletheaudienceis
viewing/reading/listening
Costsofpreparationplusspace/time
Howmuchmoneyitcoststoreach
1000people
TypesofMedia
Magazines
Ofthe8factorslistedinsection9.3,
magazinesrateveryhighon:
Selectivity,
durability
Onthenegativeside
Leadtime
costs
clutter
5mainpartsofgoodmagazine headline
ad
illustration
Headline
Illustrationsshould
Bodycopy
Signature
Layout
Newspapers
Newspapersofferawide
varietyof
Whyisthisgood?
Otheradvantages
Disadvantages
bodycopy
signature
layout
Largesttype,lessthan7words
Continuethethoughtstatedinthe
headline
Nottoomuchunlessverywelldone
Brandidentification:
logo
slogan
package
brandname
Thestructureofthead
Excellentfor:localadvertisers
Adsizes
Mostadvertiserscanaffordthem
leadtime
mechanicalrequirements
durability
clutter
Televisionisavery
Why?
TVspowercomes
Televisionadvertisingis:
Whyisitexpensive?
Disadvantages
AIDA
Radiois
Radiohasagood
Advantages
Disadvantages
Versatilemedium
Local,regional,nationaland
international
Intheabilitytocombinesightand
sound
effective
expensive
Production
cost
selectivity
clutter
durability
attracttheconsumersattention
interest
desire
action
Everywhere
Localreach
Leadtime
mechanicalrequirements
selectivity
costs
Outofhome
Advantages
Disadvantages
Directtohomeoftencalled:
2Types:
Targetedcampaigns
Aggregatecampaigns
Advantages
Disadvantages
frequency
durability
clutter
Billboards
bus
subway
Frequency
reach
clutter
selectivity
mechanicalrequirements
cost
JunkMail
Targetedcampaigns
Aggregatecampaigns
Usesinformationtolocatepotential
customers
Uselocaldistributioncompaniesor
telemarketerstosaturateanarea
reach
costs
selectivity
clutter
TheInternet
WebSites
SearchEngines
Examples:
Howtheywork:
However
3Majortypes:
websites
adsonothersites
emailadvertising
wwwcanbeadvertisedinseveral
ways
yellowpages
otherads
searchengines
Websitesthatreturnlistswhen
promptedbypeoplelookingfor
specificinformation
google
yahoo
ask
msn
Thecompanyonthetopofthelist
pays1centmoreperhitthanthe
companyinnumber2spot
Iftherearenocompetitorsforyour
productorservice,awellconstructed
sitewillbefoundbycertainsearch
enginessuchasGoogle.(seeBetatags
inyourFrontPagenotes)
Advantages
Creativeuseofpermission
basedemail
SpecialtyAdvertising
Companyputsbrand
identificationon:
Advantages(9.3)
Disadvantages
selectivity
inexpensive
mechanicalrequirements
durability
frequency
Thattargetsacustomerdatabaseisthe
bestwaytoreachinterestedconsumers
Alsoknownaspremiumandincentive
marketing
matchbooks
golfcaps
shirts
penswatches
toys
durability
selectivity
mechanicalrequirements
costs
leadtime
reach
work?
Withtheadventoftheadserver,marketingthroughtheInternet
openednewfrontiersforadvertisersandcontributedtothe"dot
com"boomofthe1990s.Entirecorporationsoperatedsolelyon
advertisingrevenue,offeringeverythingfromcouponstofree
Internetaccess.Attheturnofthe21stcentury,anumberof
websitesincludingthesearchengineGoogle,startedachangein
onlineadvertisingbyemphasizingcontextuallyrelevant,
unobtrusiveadsintendedtohelp,ratherthaninundate,users.This
hasledtoaplethoraofsimilareffortsandanincreasingtrendof
interactiveadvertising.
Theincrediblylargenumberofwebsitesandtheabilitytouse
searchengineslikeGoogle,hasmadeitincreasinglydifficult
forretailerstodecidewheretospendtheiradvertisingdollars.
TraditionalMediaasoutlinedaboveisunderseriousattack
andarelosingalotofadvertisingrevenuetoonline
advertisers.
Publicity
Publicity
FreeMediacoverage+or
Negativepublicity
Candamagesales
Publicrelationscompanies
Coordinatesmediarelations,lobbies
governmentandmanagescrises.
DatabaseisPRmanagers
Mostvaluabletool
Databasecontains
Namesofwriters,editors,producers,
photographersandeveryoneimportantin
themedia
Pressreleases
Printreadystoriesabout+thingsabout
theirclients
Presskit
Pressconference
PressJunket
Lobbyist
Whenthingsgowrong
SalesPromotion
SalesPromotion
Salespromotionaddsvalue
Promotionsaretargetedto:
BusinessesUsepromotions
for:
Pictures,bios,tvclipsotherfacts
Interview,wheremediacanaskquestions
AllexpensepaidtriporganizedbyPR
firmstotakemediapeopletoaPRevent
Trytoconvincepoliticianstosupport
theirsidewhenvotingonlegislation
whichaffectsbusiness.
PRfirmsprovidedamagecontrol.
Nonpersonalactivitiesthatmarketers
usetotrytoboostsalesoveraspecific
periodoftime
Byreducingpriceoraddingareward
consumers
distributors
buildtrafficinastoreortradeshow
createextrainterestinproduct,during
competitiveortoughperiod
motivatestaff
introducenewproduct
clearoldstock
TypesofPromotions:
Contests&sweepstakes
Differencebetweenthe2
Canadianlawprohibit
Loopholes
Contestsandsweepstakes
helpcompanies
Refund
Rebate
Rebatescanbeusedto
Couponis
Sources
Contests&sweepstakes
Refundsandrebates
coupons
premiumsandselfliquidators
samples
specialsales
POPdisplays
Awardaprizetoaselectedparticipant
Contestrequiresskill,sweepstakesis
randomonly
Sweepstakes
Skilltestingquestion
opportunitytoenterwithoutbuying
Createmailinglists
Returnofthefullamountoftheprice
Returnsaportionoftheprice
Groupanumberofbrandstogether
Adocumentthatentitlesthebearertoa
discount
internet
RedemptionRate
Premiums
Selfliquidator
Inbothcases
Examples
Samplesareoneofthe
Instoresamplingis
ReasonsforSpecialsales:
Give3examplesofspecial
sales:
mail
printads
store
couponbooks
#usedvs.numberissued
Freeproductorservice
Productorserviceofferedata
substantiallyreducedcost
Consumermustbuyanotherproductor
servicefirst
cards
points
Mosteffectiveandexpensive
promotionalactivities
Themosteffective
newlines
oldstock
oldseason
trafficduringtoughtimes
Holiday
Buy1get2free
7for27$
50%percentoff
PointofPurchaseDisplays
Pushorpullmarketing?
Whyisiteffective?
Displayisfree;why?
racks
cases
shelves
inexpensivemerchandise
attractivelydisplayed
Retailersoftenhavetobuylotsof
producttogetit
PersonalSelling
Asaleis
Methods:
Transferoftitlefromsellertobuyer
internet
phone
mail
person
Personalselling
Whentransferishandledinperson
Factorsthatdetermine
complexity
whetherpersonalsellingis
highprice
required:
industrialvs.consumer
licenserequirements
Typesofsales retailclerk/cashier
Minimumwage
positions:
retailcommissioned
%oftotalsales
detail/route
Salary+commission
contact
Goodsalary
Commissiongoodpotential
salesrepresentative
Commissionhighlypaid
agentorbroker
Veryhighsalary
salesengineer
Commissionbasedonbid
auctioneer
Thesalesprocess
acquireknowledge
makeapproach
determinewants
presentproducts
handleobjections
closesale
followup
Salespeoplemust
Knowabouttheproductorservicethey
areselling
3thingssalespeopleshould
Customerenteredforareason
remember:
oncepresented,customercanaskfor
help
cueiswhencustomerstopstolookata
specificproduct
Salespeoplecanonlysellif:
Theyknowwhatthecustomerwants
Howcantheyaccomplish
Askingtherightquestions
this?
Saledoesntbeginuntil:
Thecustomerobjects.
Abetterwaytosell
Closingthesale
Whyselladdons?
Goodsalespeoplekeep
Why?
anticipateallpossibleobjections
developaseriesofquestionsaimedat
overcomingobjectionsbeforetheyarise
askeachquestionbeforeattemptingto
closethesale,thusleavingthecustomer
withnorationalreasonnottobuy.They
eitherbuy,orlookstupid!
Alwaysaskforthesaleassumeit
willthatbecashorcredit?
whendoyouwantitdelivered
dowantustowrapitforyou
doyouwantitinwhiteorblack?
maynotbeabletousewithout
freetime
mayloseeasysale
Filesoneverycustomer
sellthemotherstuffinthefuture
selltofriendsandrelatives