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Marketing 18

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Advertising
as any paid form of nonpersonal communication about an organization, a product, a service, or an idea by an identified sponsor
Product advertisements
take three forms; 1.pioneering 2. competitive 3.reminder
Pioneering advertisements
tell people what a product is, what it can do, where it can be found.Key is to perform the target market informational ads particularly those with specific info have been found to be interesting, convincing, and effective.
Reminder
Advertisement is used to reinforce previous knowledge of a product
Reinforcement
is used to assure current users they made the right choice
institutional advertisements
is to build goodwill or an image for an organization rather than promote a specific good or service. Mostly used to support the public relations plan or counter adverse publicity
Advocacy
advertisement state the position of a company on an issue
Pioneering institutional advertisement
used for announcement about what a company is what it can do or where is located
Competitive institutional advertisement
promote the advantages of one product classes over another and are used in markets where different product classes compete for the same buyers
Reminder institutional advertisements
like the product form simply bring the company;s name to the attention of the target market again.
understanding the target audience
understanding the lifestyles, attitudes, and demographics of the target market is essential
specifying advertising objectives
step helps advertisers with other choices in the promotion decision process such as selecting media and evaluating a campaign
Setting the advertising budget
the reason for the escalating cost is growing number of viewers
Designing the Advertisement
a message usually focuses on the key benefits of the product that are important to a prospective buyer in making trial and adoption decisions
Message content
messages are made up of both informational and persuasional elements. product name, benefits, and price are presented in a way that tries to attract attention and encourage purchase. common appeals include fear sex and humor
Advertising media
the means by which the message is communicated to the target audience
Reach
is the number of different people or households exposed to an advertisement. Often used to describe their total circulation or the number of different households that buy the paper
Rating
the percentage of households in the market that are tuned to a particular TV show or radio station.
Frequency
the average number of times a person in the target audience is exposed to a message or advertisement. the greater the more desirable.
Gross rating points
when reach is multiplied by frequency an advertiser will obtain a commonly used reference number. the media planner must balance reach and frequency
Cost per Thousand
refers to the cost of reaching 1000 individuals or households with the advertising message in a given medium
TV
is a valuable medium because it communicated woth sight sound and motion. print advertisement alone could never give you the sense of a sports car accelerating from a stop or cornering at high speed
Radio
Low cost can target specific local audiences ads can be placed quickly can use sounds humor and intimacy effectively
Magazines
Can target specific audiences high-quality color long life of ad; ads can be placed clipped and saved, can convey complex info
Newspapers
excellent coverage of local markets; ads can be placed and changed quickly; ads can be saved quick consumer response low cost
Yellow pages
Excellent coverage of geographic segments; long use period available 24/7
Internet
video and audio capabilities; animation can capture attention; ads scan be interactive and link to advertiser
Outdoor
low cost; local market focus high visibility and opportunity for repeat exposure
Direct mails
high selectivity of audience can contain complex information and personalized messages high quality graphics
Infomercials
program-length about 30 mins long advertisements that take an educational approach to communication with potential customers
rich media
there interactive ads have a drop down menus built in games or search engines to engage viewers
Out of home Advertising
messages placed in locations that attract a specific target audience such as airports, doctors offices, health clubs, theaters
Selection Criteria
1.knowing the media habits of the target audience is essential to deciding among the alternatives. 2. occassionally product attributes necessitate that a certain media be used
Buyer turnover
which is how often new buyers enter the market to buy the product the higher it is the greater the amount of advertisement required
Purchase Frequency
the more frequently a product is is purchased the less repetition is required
Forgetting rate
the speed with which buyers forget the brand if advertising is not seen
Continuous Schedule
when seasonal factors are unimportant, advertising is run at a continuous or steady schedule throughout the year
Flighting schedule
periods of advertising are scheduled between periods of no advertising to reflect seasonal demand
Pulse schedule
a flighting schedule is combined with a continuous schedule because of increase demand, heavy periods of promotion or introduction of new product
Pulsing Schedule
which schedule is are superior to other advertising strategies?
Pretest
conducted before the advertisements are placed in any medium
portfolio test
used to test copy alternatives
jury test
involve showing the ad copy to a panel of consumers and having them rate how they liked it, how much it drew their attention and how attractive they thought it was
theater test
is the most sophisticated form of pretesting consumers are invited to view new TV shows or movies in which test commercials are also shown
Full service agency
provides the most complete range of services, including market research, media selection, copy, development, artwork and production
Limited served agencies
specialized in one aspect of the advertisement process such as providing creative services to develop the advertising copy, buying previously un-purchased media or providing internet services
in house agencies
made up of the company's own advertising staff may provide full services or a limited range of services
posttests
after it has been shown to the target audience to determine whether it accomplished its intended purpose
aided recall
after being shown an ad respondents are asked whether or their previous exposure to it was through reading viewing or listening
consumer oriented sales promotion
sales tools used to support a company;s advertising and personal selling
Deals
short term price reductions commonly used to increase trial among potential customers or retaliate against a competitor's actions
Product Placement
involves the use of a brand name product in a movie television show video game or commercial for another product.
Reverse Product Placement
Brings functional products to the market place
Trade Oriented sales promotion
sales tools used to support a company's advertising and personal selling directed to whole sales, retailers, or distributors. focused on maintaining or increasing inventory levels in the channel of distribution.
Merchandise allowance
Reimbursing a retailer for extra in store support or special featuring of the brand
Case Allowance
is a discount on each case ordered during a specific time period
Finance allowance
involves paying retailers for financing costs or financial losses associated with consumers sales promotion
Cooperative Advertising
sales promotional activity is to encourage both better and greater quantity in local advertising of resellers
Public service announcement
which are free space or time donated by the media
Long Term Relationships
brand and store loyalty by improving its ability to target individual preferences and by engaging customers in valuable and entertaining communication
Self regulation
increasing efforts by advertising agencies, trade associations and marketing organizations