Lecture Marketing: The core (5/e): Chapter 15 – Kerin, Hartley, Rudelius

                                McGraw­Hill/Irwin                                                                                         Copyright © 2013 by The McGraw­Hill Companies, Inc.  All rights reserved.


LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 15, YOU SHOULD BE ABLE TO:

LO1

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

LO2

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

LO3

Explain the advantages and
disadvantages of alternative
advertising media.
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LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 15, YOU SHOULD BE ABLE TO:

LO4

Discuss the strengths and weaknesses
of consumer-oriented and tradeoriented sales promotions.

LO5

Recognize public relations as an
important form of communication.

15­3


WHERE CAN YOU WATCH TV?
WHERE CAN’T YOU?



Online TV (OTV)

15­4


LO1

TYPES OF ADVERTISEMENTS
PRODUCT ADVERTISEMENTS



Advertising



Product Advertisements
• Pioneering
(or Informational)

• Reminder

• Competitive
(or Persuasive)

• Reinforcement

• Comparative
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LO1

Campbell’s, 1&1, and Red Bull
What is the type and purpose of each advertisement?

15­6


LO1

Dial Soap
What is the type and purpose of this advertisement?

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LO1



TYPES OF ADVERTISEMENTS
INSTITUTIONAL ADVERTISEMENTS

Institutional Advertisements
• Advocacy
• Pioneering Institutional
• Competitive Institutional
• Reminder Institutional
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LO1

Chevron and Bridgestone
What is the type and purpose of each advertisement?

15­9


LO1

Got Milk? and U.S. Army

What is the type and purpose of each advertisement?

15­10


LO2

DEVELOPING THE
ADVERTISING PROGRAM



Identifying the
Target Audience



Specifying the
Advertising Objectives



Setting the
Advertising Budget
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LO2

DEVELOPING THE

ADVERTISING PROGRAM
DESIGNING THE ADVERTISEMENT



Message Content
• Informational
Element
• Persuasive
Element



Types of Appeals
• Fear Appeals
• Sex Appeals
• Humorous Appeals

15­12


LO2

World Wide Fund, Candie’s, and Geico
What is the appeal and purpose of each advertisement?

15­13


LO2

DEVELOPING THE
ADVERTISING PROGRAM
DESIGNING THE ADVERTISEMENT



Creating the Actual Message
• Celebrity Spokespeople

• Ideas and Artwork
• Cost
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LO2

DEVELOPING THE
ADVERTISING PROGRAM
SELECTING THE RIGHT MEDIA



Advertising Media



Media Planning Goals
• Maximize Exposure
• Minimize Costs

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FIGURE 15-1 Television, direct mail, and
newspapers account for more than 65% of
all advertising expenditures (in $millions)

15­16


LO2

DEVELOPING THE
ADVERTISING PROGRAM
SELECTING THE RIGHT MEDIA



Basic Terms
• Reach
• Rating
• Frequency
• Gross Rating Points (GRPs)

= Reach × Frequency

• Cost per Thousand (CPM)
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LO2

USING MARKETING DASHBOARDS
What is the Best Way to Reach 1,000 Customers?
Cost per Thousand (CPM) Impressions
CPM ($) =

Advertising Cost ($)
Impressions Generated (#)
1,000

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FIGURE 15-2 Advertisers must consider the
advantages and disadvantages of the many
media alternatives

15­19


LO3

DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES



Television
• Out-of-Home TV
• Online TV (OTV)

15­20


LO3

DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES



Television
• Wasted Coverage
• Cable and Satellite TV
• Infomercials
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LO3

DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES



Radio
• Satellite Radio

• Drive Times

15­22


LO3

DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES



Magazines
• Regional Issues

15­23


LO3

DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES



Newspapers
• Falling Circulation & Ad Revenue
• Online and Mobile
• New Types of News Organizations

15­24


LO3

DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES



Yellow Pages

15­25