•
Chapters 13, 15, 16, 17
o
o
o
o
o
o
o
o
o
o
o
o
o
o
Describe each of the 4 elements in the promotional mix
Describe the 3 channel functions performed by intermediaries
Describe the 3 goals of promotion and how they relate to the PLC
Describe the 3 major types of product advertising
Describe the class of ownerships of retailers
Describe the steps in the communications process and their importance
Give us some advantages and disadvantages of various advertising media
How do the 4P's influence channel selection?
List in detail some advertising approaches used to gain and hold attention
What are the 4 discrepancies marketing channels overcome? Why are they
important?
What are the 6P's? How do they differ from the normal 4P's?
What are the differences between consumer and business channels?
What is AIDA and why is it important?
What is DAGMAR and how is it used?
Marketing Channels
CHAPTER
13
Marketing
10
Lamb, Hair, McDaniel
Designed by
Eric Brengle
B-books, Ltd.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Prepared by
Amit Shah
Frostburg State University
1
LOI
Marketing Channels
Marketing
Channel
A set of interdependent
organizations that ease the
transfer of ownership as
products move from
producer to business user
or consumer.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
2
Specialization and Division
of Labor
▪ Creates greater efficiency
▪ Provides lower costs
▪ Achieves economies of scale
▪ Aids producers who lack resources to
market directly
▪ Builds good relationships with customers
LOI
Copyright ©2009 by Cengage Learning Inc. All rights reserved
3
LOI
Overcoming Discrepancies
Discrepancy
of
Quantity
The difference between the
amount of product produced
and the amount an end user
wants to buy.
Discrepancy
of
Assortment
The lack of all the items a
customer needs to receive full
satisfaction from a product or
products.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
4
LOI
Overcoming Discrepancies
Temporal
Discrepancy
A situation that occurs when a
product is produced but a
customer is not ready to buy it.
Spatial
Discrepancy
The difference between the
location of a producer and the
location of widely
scattered markets.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
5
LOI
Providing Contact Efficiency
Copyright ©2009 by Cengage Learning Inc. All rights reserved
6
LO2
Channel Intermediaries
Retailers
Take Title to Goods
Merchant
Wholesalers
Take Title to Goods
Agents
and
Brokers
Do NOT Take Title to Goods
Copyright ©2009 by Cengage Learning Inc. All rights reserved
7
LO2
Channel Functions Performed
by Intermediaries
Contacting/Promotion
Transactional
Functions
Negotiating
Risk Taking
Physically distributing
Logistical
Functions
Storing
Sorting
Facilitating
Functions
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Researching
Financing
8
Logistics
LO2
Logistics
The efficient and costeffective forward and
reverse flow as well as
storage of goods, services,
and related information,
into, through, and out of
channel member companies.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
9
Channels for Consumer Products
Direct
Channel
Producer
Retailer
Channel
Producer
Wholesaler
Channel
Producer
Agent/Broker
Channel
Producer
Agents or
Brokers
Consumers
Wholesalers
Wholesalers
Retailers
Retailers
Retailers
Consumers
Consumers
Consumers
LO3
Copyright ©2009 by Cengage Learning Inc. All rights reserved
10
Channels for Business Products
Direct
Channel
Direct
Channel
Industrial
Distributor
Agent/Broker
Channel
Producer
Producer
Producer
Producer
Producer
Agents or
Brokers
Agents or
Brokers
Industrial
Distributor
Industrial
Distributor
Industrial
User
Govt.
Buyer
Industrial
User
Agent/Broker
Industrial
Channel
Industrial
User
Industrial
User
LO3
Copyright ©2009 by Cengage Learning Inc. All rights reserved
11
LO3
Alternative Channel
Arrangements
Multiple channels
Nontraditional channels
Strategic channel alliances
Copyright ©2009 by Cengage Learning Inc. All rights reserved
12
LO4
Market Factors
Customer profiles
Consumer or Industrial
Customer
Market
Factors
That Affect
Channel
Choices
Size of market
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Geographic location
13
LO4
Product Factors
Product Complexity
Product Price
Product Standardization
Product
Factors
That Affect
Channel
Choices
Product Life Cycle
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Product Delicacy
14
LO4
Producer Factors
Producer Resources
Number of Product Lines
Producer
Factors
That Affect
Channel
Choices
Desire for Channel Control
Copyright ©2009 by Cengage Learning Inc. All rights reserved
15
LO4
Levels of Distribution Intensity
Intensity
Level
Objective
Intensive
Achieve mass market
selling.
Convenience goods.
Many
Selective
Work with selected
intermediaries.
Shopping and some
specialty goods.
Several
Exclusive
Work with single
intermediary. Specialty
goods and industrial
equipment.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Number of
Intermediaries
One
16
LO5
Arm’s Length, Integrated, and
Cooperative
Arm’s Length
Relationship
A relationship between companies
that is loose, characterized by low
Relational investment and trust,
and usually taking the form of a
series of discrete transactions with
no/low expectation of future
interaction or service.
Integrated
Relationship
A relationship between companies
that is tightly connected, with
linked processes across and
between firm boundaries, and high
levels of trust and inter-firm
commitment.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
17
LO5 Channel
Conflict and Partnering
Cooperative
Relationship
Copyright ©2009 by Cengage Learning Inc. All rights reserved
A relationship between companies
that takes the form of informal
partnership with moderate levels
of trust and information sharing as
needed to further each company’s
goals.
18
Channel Conflict
Conflicts may occur if channel members:
• Have conflicting goals
• Fail to fulfill expectations of other channel members
• Have ideological differences
• Have different perceptions of reality
LO6
Copyright ©2009 by Cengage Learning Inc. All rights reserved
19
LO8
Channels and Distribution Decisions
for Services
Minimizing wait times
Managing service capacity
Improving service delivery
Copyright ©2009 by Cengage Learning Inc. All rights reserved
20
Retailing
CHAPTER
15
Marketing
10
Lamb, Hair, McDaniel
Designed by
Eric Brengle
B-books, Ltd.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Prepared by
Amit Shah
Frostburg State University
1
LOI
The Role of Retailing
Retailing
All the activities directly
related to the sale of goods
and services to the ultimate
consumer for personal,
non-business use.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
2
LOI
The Role of Retailing
▪ Over 1.6 million U.S. retailers employ more than
24 million people
▪ Retailers account for 11.6 percent of U.S.
employment
▪ Retailing accounts for 13 percent of U.S.
businesses
▪ Retailers ring up almost $4 trillion in sales--nearly
40 percent of the U.S. GDP
▪ Industry is dominated by a few giant
organizations, such as Wal-Mart
Copyright ©2009 by Cengage Learning Inc. All rights reserved
3
LO2
Classification of Retail
Operations
Ownership
Level of Service
Product Assortment
Price
Copyright ©2009 by Cengage Learning Inc. All rights reserved
4
LO2 Classification of Ownership
Independent
Retailers
Owned by a single person or
partnership and not part of a
larger retail institution
Chain Stores
Owned and operated as a
group by a single
organization
Franchises
The right to operate a
business or sell a product
Copyright ©2009 by Cengage Learning Inc. All rights reserved
5
LO2
Level of Service
Self Service
Factory outlets
Warehouse clubs
Full Service
Discount stores
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Exclusive stores
6
LO2
Product Assortment
Type of Retailer
Service
Level
Assortment
Price
Gross
Margin
Department Store
Mod Hi-High
Broad
Mod-High
Mod High
Specialty Store
High
Narrow
Mod-High
High
Supermarket
Low
Broad
Moderate
Low
Convenience Store
Low
Med-Narrow Mod High
Mod High
Drugstore
Low-Mod
Medium
Moderate
Low
Full-line Discounter
Mod-Low
Med-Broad
Mod Low
Mod Low
Specialty Discounter
Mod-Low
Med-Broad
Mod Lo-low Mod Low
Warehouse Clubs
Low
Broad
Low-very low Low
Off-price Retailer
Low
Med-Narrow Low
Low
Restaurant
Low-High
Narrow
Low-High
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Low-High
7
LO2
Price
Gross
Margin
The amount of money the
retailer makes as a
percentage of sales after
the cost of goods sold is
subtracted.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
8
LO3
Major Types of Retail Operations
Department Stores
Specialty Stores
Supermarkets
Drugstores
Convenience Stores
Discount Stores
Restaurants
http://www.walgreens.com
Online
Copyright ©2009 by Cengage Learning Inc. All rights reserved
9
LO3
Discount Stores
Mass
Merchandising
Retailing strategy using
moderate to low prices on
large quantities of
merchandise and lower
service to stimulate high
turnover of products.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
10
LO3
Discount Stores
Supercenter
Extreme-value
Retailing
Retail store combining
groceries and general
merchandise goods
with a wide range of services.
Smaller stores emphasizing
daily necessities at
rock-bottom prices.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
11
LO3
Specialty Discount Stores
Category
Killers
Specialty discount stores
that heavily dominate
their narrow merchandise
segment.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
12
LO4
Nonstore Retailing
Automatic Vending
Direct Retailing
Direct Marketing
Electronic Retailing
Copyright ©2009 by Cengage Learning Inc. All rights reserved
13
LO4
Direct Retailing
Door-to-Door
Office-to-Office
Home Sales
Parties
http://www.avon.com
Online
Copyright ©2009 by Cengage Learning Inc. All rights reserved
14
LO4
Types of Direct Marketing
Direct Mail
Catalogs & Mail Order
Telemarketing
Electronic Retailing
Shop-at-home networks
On-line retailing
Copyright ©2009 by Cengage Learning Inc. All rights reserved
15
LO6
Retail Marketing Strategy
Define & Select
a Target Market
Develop the
“Six Ps”
Copyright ©2009 by Cengage Learning Inc. All rights reserved
16
LO6
Defining a Target Market
Demographics
STEP 1:
Segment the Market
Geographics
Psychographics
Copyright ©2009 by Cengage Learning Inc. All rights reserved
17
LO6
Choosing the Retailing Mix
Product
Place
Price
Personnel
Promotion
Presentation
STEP 2:
Choose the
Retailing Mix
http://www.publix.com
Online
Copyright ©2009 by Cengage Learning Inc. All rights reserved
18
LO6
Important Factors for Site Choice
▪
Neighborhood
socioeconomics
▪
Traffic flows
▪
Land costs
▪
Zoning regulations
▪
Public transportation
▪
Site’s visibility, parking,
entrances and exits,
accessibility, and safety
▪
Fit with other stores
Copyright ©2009 by Cengage Learning Inc. All rights reserved
19
LO6 Presentation of the Retail Store
Employee type and density
Merchandise type and density
Fixture type and density
Sound
Odors
Visual factors
http://www.apple.com
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Online
20
Promotional Planning for Competitive Advantage
CHAPTER
16
Marketing
10
Lamb, Hair, McDaniel
Designed by
Eric Brengle
B-books, Ltd.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Prepared by
Amit Shah
Frostburg State University
1
LOI
The Role of Promotion
Promotion
Communication by
marketers that informs,
persuades, and reminds
potential buyers of a
product in order to influence
an opinion or elicit a
response.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
2
LOI
The Role of Promotion
Promotional
Strategy
A plan for the optimal use of
the elements of promotion:
Competitive
Advantage
Copyright ©2009 by Cengage Learning Inc. All rights reserved
▪
▪
▪
▪
Advertising
Public Relations
Sales Promotion
Personal Selling
3
LOI
The Role of Promotion
in the Marketing Mix
Overall Marketing
Objectives
•
•
•
•
Marketing Mix
Product
Place
Promotion
Price
Target Market
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Promotional Mix
•
•
•
•
Advertising
Public Relations
Sales Promotion
Personal Selling
Promotion Plan
4
LOI
Competitive Advantage
High product quality
Rapid delivery
Low prices
Excellent service
Unique features
Copyright ©2009 by Cengage Learning Inc. All rights reserved
5
LO2
Communication
Communication
The process by which we
exchange or share
meanings through a
common set of symbols.
http://www.mcdonalds.com
Online
Copyright ©2009 by Cengage Learning Inc. All rights reserved
6
LO2
Marketing Communication
Categories of
Communication
Interpersonal
Communication
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Mass
Communication
7
LO2
Marketing Communication
As Senders
As Receivers
▪ Inform
▪ Develop messages
▪ Persuade
▪ Adapt messages
▪ Remind
▪ Spot new
communication
opportunities
Copyright ©2009 by Cengage Learning Inc. All rights reserved
8
The Communication Process
Noise
Sender
LO2
Encoding
Message
Message
Channel
Decoding
Message
Receiver
Feedback
Channel
Copyright ©2009 by Cengage Learning Inc. All rights reserved
9
LO3
Goals of Promotion
Informing
PLC Stages:
Introduction
Early Growth
PLC Stages:
Growth
Maturity
Reminding
PLC Stages:
Maturity
Target
Audience
Persuading
Copyright ©2009 by Cengage Learning Inc. All rights reserved
10
Sales ($)
LO7
Stage in the Product Life Cycle
Maturity
Introduction
Growth
Decline
Time
Light
Advertising;
preintroduction
publicity
Heavy use of
Advertising;
PR for
awareness;
sales
promotion
for trial
Advertising,
PR, brand
loyalty;
personal
selling for
distribution
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Ads decrease;
sales
promotion;
personal
selling;
reminder &
persuasive
AD/PR
decrease;
limited
sales
promotion;
personal
selling for
distribution
11
Goals of Promotion
Informative Promotion
LO3
▪
Increase awareness
▪
Explain how product works
▪
Suggest new uses
▪
Build company image
Copyright ©2009 by Cengage Learning Inc. All rights reserved
12
Goals of Promotion
Persuasive Promotion
▪ Encourage brand switching
▪ Change customers’ perceptions of
product attributes
▪ Influence immediate buying decision
▪ Persuade customers to call
LO3
Copyright ©2009 by Cengage Learning Inc. All rights reserved
13
Goals of Promotion
Reminder Promotion
▪ Remind customers that product
may be needed
▪ Remind customers where
to buy product
▪ Maintain customer awareness
LO3
Copyright ©2009 by Cengage Learning Inc. All rights reserved
14
LO4
The Promotional Mix
Promotional
Mix
Combination of promotion
tools used to reach the
target market and fulfill the
organization’s overall goals.
▪
▪
▪
▪
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Advertising
Public Relations
Sales Promotion
Personal Selling
15
LO4
The Promotional Mix
Advertising
Any form of impersonal
(one-way) paid
communication in which the
sponsor or company is
identified.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
16
Advertising Media
Traditional
Advertising Media
▪
▪
▪
▪
▪
▪
▪
▪
LO4
Television
Radio
Newspapers
Magazines
Books
Direct mail
Billboards
Transit cards
Copyright ©2009 by Cengage Learning Inc. All rights reserved
New
Advertising Media
▪
▪
▪
▪
▪
▪
Internet
Banner ads
Viral marketing
E- mail
Interactive video
Social networks
17
LO4
Public Relations
Public
Relations
The marketing function that
evaluates public attitudes,
identifies areas within the
organization that the public
may be interested in, and
executes a program of action
to earn public understanding
and acceptance.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
18
LO4
The Function of
Public Relations
• Maintain a positive image
• Educate the public about the company’s
objectives
• Introduce new products
• Support the sales effort
• Generate favorable publicity
Copyright ©2009 by Cengage Learning Inc. All rights reserved
19
LO4
Personal Selling
Personal
Selling
A purchase situation
involving a personal, paidfor communication between
two people in an attempt to
influence each other.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
20
LO4
Personal Selling
Traditional
Selling
(sell products)
Relationship
Selling
(sell advice and counsel)
Copyright ©2009 by Cengage Learning Inc. All rights reserved
21
LO4
Sales Promotion
Sales
Promotion
Marketing activities--other
than personal selling,
advertising, and public
relations--that stimulate
consumer buying and
dealer effectiveness.
http://www.nabiscoworld.com
Online
Copyright ©2009 by Cengage Learning Inc. All rights reserved
22
LO4
Sales Promotion
Free samples
Contests
Premiums
End
Consumers
Company
Employees
Trade Shows
Vacation Giveaways
Trade Customers
Coupons
Copyright ©2009 by Cengage Learning Inc. All rights reserved
23
LO4
Characteristics of the Elements
in the Promotional Mix
Advertising
Communication Mode
Indirect and impersonal
Communication Control
Low
Feedback Amount
Little
Feedback Speed
Delayed
Message Flow Direction
One-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Fast
Message Flexibility
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Same message to all audiences
24
LO4
Characteristics of the Elements
in the Promotional Mix
Public Relations
Communication Mode
Communication Control
Feedback Amount
Usually indirect, impersonal
Moderate to low
Little
Feedback Speed
Delayed
Message Flow Direction
One-way
Message Content Control
No
Sponsor Identification
No
Reaching Large Audience
Message Flexibility
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Usually fast
Usually no direct control
25
LO4
Characteristics of the Elements
in the Promotional Mix
Sales Promotion
Communication Mode
Communication Control
Feedback Amount
Feedback Speed
Message Flow Direction
Usually indirect and impersonal
Moderate to low
Little to moderate
Varies
Mostly one-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Message Flexibility
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Fast
Same message to varied target
26
LO4
Characteristics of the Elements
in the Promotional Mix
Personal Selling
Communication Mode
Direct and face-to-face
Communication Control
High
Feedback Amount
Much
Feedback Speed
Message Flow Direction
Immediate
Two-way
Message Content Control
Yes
Sponsor Identification
Yes
Reaching Large Audience
Message Flexibility
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Slow
Tailored to prospect
27
LO5
The AIDA Concept
Action
Desire
Interest
Attention
Conative (doing)
Affective (feeling)
Cognitive (thinking)
Copyright ©2009 by Cengage Learning Inc. All rights reserved
28
LO6
Integrated Marketing
Communications
Integrated
The careful coordination of all
Marketing
promotional messages to
Communications assure the consistency of
messages at every contact
point where a company meets
the consumer.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
29
IMC Popularity Growth
• Proliferation of thousands of
media choices
• Fragmentation of the mass market
• Slash of advertising spending in
favor of promotional techniques that
generate immediate response
LO6
Copyright ©2009 by Cengage Learning Inc. All rights reserved
30
LO7
Type of Buying Decision
Advertising
Routine
Sales Promotion
Neither Routine
nor Complex
Advertising
Public Relations
Personal Selling
Complex
Print Advertising
Copyright ©2009 by Cengage Learning Inc. All rights reserved
31
LO7
Available Funds
•
Trade-offs with funds available
•
Number of people in target market
•
Quality of communication needed
•
Relative costs of promotional elements
Copyright ©2009 by Cengage Learning Inc. All rights reserved
32
Advertising and Public Relations
CHAPTER
17
Marketing
10
Lamb, Hair, McDaniel
Designed by
Eric Brengle
B-books, Ltd.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Prepared by
Amit Shah
Frostburg State University
1
LOI
The Effects of Advertising
Top Ten Leaders by U.S.
Advertising Spending
Copyright ©2009 by Cengage Learning Inc. All rights reserved
2
LOI
Advertising and Market Share
New brands with a small market share spend
proportionally more for advertising and sales
promotion than those with a large market share
1. Beyond a certain level of spending,
diminishing returns set in.
2. New brands require higher spending to
reach a minimum level of exposure
needed to affect purchase habits.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
3
The Effects of Advertising
on Consumers
▪ The average U.S. citizen is exposed to
hundreds of ads each day.
▪ Advertising may change a consumer’s
negative attitude toward a product, or
reinforce a positive attitude.
▪ Advertising can affect consumer
ranking of a brand’s attributes.
LOI
Copyright ©2009 by Cengage Learning Inc. All rights reserved
4
LO2
Major Types of Advertising
Corporate identity
Institutional
Advertising
Advocacy
advertising
Pioneering
Product
Advertising
Competitive
Comparative
Copyright ©2009 by Cengage Learning Inc. All rights reserved
5
LO2
Product Advertising
Pioneering
▪ Stimulates primary demand for
new product or category
▪ Used in the PLC introductory stage
Competitive
▪ Influences demand for brand in the
growth phase of the PLC
▪ Often uses emotional appeal
Comparative
▪ Compares two or more competing
brands’ product attributes
▪ Used if growth is sluggish, or if
competition is strong
http://www.pizzahut.com
http://www.papajohns.com
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Online
6
LO3
Creative Decisions in Advertising
Determine the
advertising objectives
Make creative decisions
Make media decisions
Evaluate the campaign
Copyright ©2009 by Cengage Learning Inc. All rights reserved
7
Setting Objectives:
The DAGMAR Approach
(Defining Advertising Goals for
Measured Advertising Results)
Define target audience
Define desired percentage change
Define the time frame for change
LO3
Copyright ©2009 by Cengage Learning Inc. All rights reserved
8
LO3
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
Copyright ©2009 by Cengage Learning Inc. All rights reserved
9
LO3
Identify Product Benefits
Attribute
“SoBe Life Water has reformulated
five delicious, low-calorie flavors,
each infused with essential vitamins
and healthy herbal ingredients.”
- So?
Benefit
“SoBe Life Water is not only an
enhanced water; it is a lifestyle unto
itself. It provides consumers the
healthiest, most fun and refreshing
products, delivering the incredibly
positive benefits of hydration.”
Copyright ©2009 by Cengage Learning Inc. All rights reserved
10
LO3
Advertising Appeals
Profit
Product saves, makes, or protects money
Health
Appeals to body-conscious or health seekers
Love or romance
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
Environmental
Consciousness
Used for expensive or conspicuous items
Centers around environmental protection
Copyright ©2009 by Cengage Learning Inc. All rights reserved
11
LO4
Major Advertising Media
Newspapers
Magazines
Radio
Television
Outdoor Media
Yellow Pages
Internet
Copyright ©2009 by Cengage Learning Inc. All rights reserved
12
LO4
Newspapers
Advantages
▪
▪
▪
▪
▪
▪
▪
Geographic selectivity
Short-term advertiser
commitments
News value and
immediacy
Year-round readership
High individual market
coverage
Co-op and local tie-in
availability
Short lead time
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Disadvantages
▪
▪
▪
▪
Limited demographic
selectivity
Limited color
Low pass-along rate
May be expensive
13
LO4
Magazines
Advantages
▪
Good reproduction
▪
Demographic selectivity
▪
Regional/local selectivity
▪
Long advertising life
▪
High pass-along rate
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Disadvantages
▪
Long-term advertiser
commitments
▪
Slow audience build-up
▪
Limited demonstration
capabilities
▪
Lack of urgency
▪
Long lead time
14
LO4
Radio
Advantages
Disadvantages
▪
Low cost
▪
No visual treatment
▪
Immediacy of message
▪
Short advertising life
▪
Short notice scheduling
▪
▪
No seasonal audience
change
High frequency to
generate comprehension
and retention
▪
Background distractions
▪
Commercial clutter
▪
Highly portable
▪
Short-term advertiser
commitments
▪
Entertainment carryover
Copyright ©2009 by Cengage Learning Inc. All rights reserved
15
LO4
Television
Advantages
▪
▪
▪
▪
▪
▪
Wide, diverse audience
Low cost per thousand
Creative opportunities for
demonstration
Immediacy of messages
Entertainment carryover
Demographic selectivity
with cable
Disadvantages
▪
▪
▪
▪
▪
▪
▪
Copyright ©2009 by Cengage Learning Inc. All rights reserved
Short life of message
Consumer skepticism
High campaign cost
Little demographic
selectivity with stations
Long-term advertiser
commitments
Long lead times for
production
Commercial clutter
16
LO4
Outdoor Media
Advantages
Disadvantages
▪
Repetition
▪
Short message
▪
Moderate cost
▪
▪
Lack of demographic
selectivity
Flexibility
▪
▪
High “noise” level
Geographic selectivity
Copyright ©2009 by Cengage Learning Inc. All rights reserved
17
LO4
Internet
Advantages
▪
Fast growing
▪
Ability to reach narrow
target audience
▪
Short lead time
▪
Moderate cost
Disadvantages
▪
Difficult to measure ad
effectiveness and ROI
▪
Ad exposure relies on
“click through” from
banner ads
▪
Not all consumers have
access to Internet
http://www.fox.com
http://www.abc.com
Online
Copyright ©2009 by Cengage Learning Inc. All rights reserved
18
LO4
Videogame Advertising
• In 2006, Microsoft acquired Massive inc., a startup that places ads in video games.
• Ads are inserted into the
game environment.
• Video games could become
a large new medium for
advertising.
SOURCE: Robert A. Guth and Nick Wingfield,
“Microsoft’s ‘Massive’ Move into Game Ads,”
Wall Street Journal, April 26,2006, B1.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
19
LO4
Cell Phones
• Newest advertising media
• Useful for reaching youth market
• 3 billion cell phone users in the world
• In 2006 cell phone ad sales reached over
$400 million in U.S. – nearly $900 million
worldwide
Copyright ©2009 by Cengage Learning Inc. All rights reserved
20
LO4
Quantitative Factors in
Media Selection
• Media Mix – Combination of media to be
used for a promotional campaign
• Cost per contact – The cost of reaching one
member of the target market
• Reach – number of target consumers
exposed to a commercial at least once
during a specific period, usually four weeks
• Frequency – number of times an individual is
exposed to a given message during a
specific period
Copyright ©2009 by Cengage Learning Inc. All rights reserved
21
LO4
Qualitative Factors in
Media Selection
• Attention to the commercial
and the program
• Involvement
• Program liking
• Lack of distractions
• Other audience behaviors
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22
LO4
Media Scheduling
Continuous
Media Schedule
Advertising is run steadily
throughout the period.
Flighted
Media Schedule
Advertising is run heavily every
other month or every two weeks.
Pulsing
Media Schedule
Advertising combines continuous
scheduling with flighting.
Seasonal
Media Schedule
Advertising is run only when the
product is likely to be used.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
23
LO5
Public Relations
Public Relations
The element in the promotional
mix that:
▪ evaluates public attitudes
▪ identifies issues of public concern
▪ executes programs to gain public
acceptance
Copyright ©2009 by Cengage Learning Inc. All rights reserved
24
LO5
Functions of Public Relations
Press relations
Product publicity
Corporate communication
Public affairs
Lobbying
Employee and investor relations
Crisis management
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25
LO5
Managing Unfavorable Publicity
Crisis
Management
A coordinated effort to
handle the effects of
unfavorable publicity or of
an unfavorable event.
Copyright ©2009 by Cengage Learning Inc. All rights reserved
26
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