©2003 prentice hall, incmarketing: real people, real choices 3rd edition15-0 chapter 15...

Marketing: Real People, Real Choices 3rd edition 15-1©2003 Prentice Hall, Inc

Chapter 15

Advertising, Direct Marketing,

and M-Commerce


Chapter Objectives

Tell what advertising is and describe the major types of advertising

Describe the process of developing an advertising campaign

Explain how marketers evaluate advertising

Understand direct marketing

Explain the future of m-commerce


It’s an Ad Ad Ad Ad World

Advertising is nonpersonal communication paid for by an identified sponsor using mass media to persuade, inform, and remind an audience.


Types of Advertising

Product advertising - message focuses on a specific product

Institutional advertising - message focuses on activities, personality, or point of view of a company

– advocacy advertising

– public service advertisements (PSAs)


Who Does Advertising?

An advertising campaign is a coordinated, comprehensive plan that carries out promotion objectives and results in a series of advertisements placed in media over a period of time

Agencies

– limited-service– full-service


The Body of Campaign Creation

Account management (soul)

Creative services (heart)

Research and marketing services (brains)

Media planning (legs)


Developing the Advertising Campaign

Identify the Target Market

Establish Objectives, Message, and Budget

Design Ad Campaign

Pretest Campaign

Choose Media and Schedule


Establish Objectives

Message goals

Budget


Design the Ad

Creative strategy is the process that turns a concept into an advertisement

Creatives try to develop a “big idea”

Creatives:

– art directors

– copywriters

– photographers


Advertising Appeals

Reasons Why (USP)

Comparative Advertising

Demonstration

Testimonial

Slice-of-Life

Lifestyle

Fear

Sex

Humor

Slogans/Jingles


Name that Brand!

Double your pleasure, double your fun

Good to the last drop

My bologna has a first name….

I’d like to buy the world a _____


Pretest What Will Be Said

Copy testing measures ad effectiveness

– Concept testing

– Test commercials (with animatics or storyboards)

– Finished testing


Choose the Media

Media planning is a problem-solving process for getting a message to a target audience in the most effective fashion

– Where to say it

– When to say it


Television

Pros– Creative and flexible

– Prestigious

– High impact messages

– Network TV is cost effective for reaching mass audience

– Cable TV is good for reaching targeted group

Cons– Quickly forgotten

– Requires frequent repetition

– Increasingly fragmented audiences

– High costs on an absolute basis

– Shorter ads result in increased clutter


Radio

Pros

– Good for selective targeting

– Heard out of home– Relatively low cost– Can be modified fast– Uses listener

imagination

Cons

– Listeners may not pay full attention

– Small audiences mean ads must be repeated frequently

– Not appropriate for products requiring demonstration


Newspapers

Pros

– Wide exposure and coverage

– Flexible format– Useful for

comparison shopping

– Local retailers can tie in with national

Cons

– Most don’t spend much time reading newspapers

– Low readership among teens and young adults

– Short life span– Very cluttered


Magazines

Pros

– Target audiences– High credibility and

interest level – Long life span and

pass along rate– Excellent visual

quality

Cons

– With exception of direct mail, the most expensive form

– Long deadlines– Must use several

magazines to reach target


Outdoor

Pros

– Very high reach– Low cost– Good for

supplementing other media

Cons

– Hard to communicate complex messages

– Cannot demonstrate product effectiveness

– Controversial and disliked


Direct Response

Pros

– Ads can target extremely narrow audiences

– Messages can be timed

– Easy to measure effectiveness

Cons

– High cost per exposure

– Target lists must be constantly updated

– Ads lack credibility among many consumers


Innovative Media

Place-based media - transmit messages in public places

Guerilla marketing - use unconventional locations and intensive word-of-mouth campaigns to push products


Internet Advertising

Banners

Buttons

Sponsorships

Search engine and directory listings

Pop-up ads

Email

– permission marketing

– spamming

Web site design


Media Scheduling

Specifies the exact media to use for the campaign, when and how often the message should appear

Outlines the planner’s best estimate of which media and vehicles will be most effective in attaining campaign objectives


Factors Affecting Media Scheduling

Target market profile

People reached by different vehicles

Advertising patterns of competitors

Capability of medium to convey desired information

Compatibility of product with editorial content


Media Scheduling Terms_1

Impressions - the number of people who will be exposed to a message placed in one or more media vehicles

Reach - the percentage of the target market exposed to the media vehicle

Frequency - the average number of times a person in the target group will be exposed to the vehicle


Media Scheduling Terms_2

Gross Rating Points (GRPs) - reach * frequency

Cost per Thousand (CPM) - compares the relative cost effectiveness of different media vehicles that have different exposure rates; it reflects the cost to deliver a message to 1,000 people


Media Scheduling: How Often?

Continuous - steady stream throughout year

Pulsing - varies amount of advertising based on when product is in demand (e.g., suntan lotion)

Flighting - advertising appears in short, intense bursts alternative with period of little to no activity


Evaluating Advertising

Posttesting means conducting research on consumers’ responses to advertising messages they have seen or heard

– unaided recall

– aided recall

– attitudinal measures


Direct Marketing

Any direct communication to a consumer or business recipient that is designed to generate a response in the form of an order, a request for further information, and/or a visit to a store or other place of business for purchase of a product


Forms of Direct Marketing

Mail order

– Catalogs– Direct mail

Telemarketing

Direct response television

– Infomercials– Home shopping networks


M-Commerce

Promotional activities transmitted over mobile phones and other mobile devices such as personal digital assistants (PDAs)

– Prevalent in Europe and Asia

©2003 prentice hall, incmarketing: real people, real choices 3rd edition15-0 chapter 15...

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