Advertising Final

• Used to generate goodwill for an organization

• Helps an organization and its publics relate to each other

• Creates free publicity

• Do something good, then tell about it (media)

• Improve public schools (52%)

• Dropout prevention (34%)

• Scholarships (28%)

• Cleanup environment (27%)

• Community health education (25%)

• Public relations people seek to persuade media gatekeepers to carry stories about their companies

• This aspect of PR is called publicity and free publicity

• Public relations people are at the mercy of the media gatekeeper (to run free information)

• Advertising runs exactly as the client who paid for it has approved

• Planning and preparing for the unexpected

• Financial (cash problems – bankruptcy)

• Strategic (changes that impact the product – laws)

• Public Relations (negative publicity – internet)

• If company is at fault, this is the best strategy to use – Five elements

• Expression of guilt, regret (BIG MEA CULPA)

• Recognize bad behavior, accept penalties

• Reject inappropriate behavior

• Approve right behavior and promise not to conduct bad behavior again

• Offer compensation to correct wrong

• React immediately

• Get involved in local communities

• Use the print and electronic media

• To maximize positive impact:
• • Identify areas where the firm can make a positive difference.

• Make sure local media are aware.

• Inform and involve employees.

• Invest in advertising and public relations to highlight the firm’s efforts.

• Aimed at content of a marketing piece.

• Focus groups (8-10 people in room with moderator)

• Concept testing instruments

• Comprehension tests (do they understand it)

• Reaction tests (what will they do as a result of it)

• Show respondent a folder of different ads and ask questions for recall after the person has looked at them

• Used for print ads

• A method used in testing the viewer responses of a large, randomly selected audience after being exposed to an ad

• Used for electronic (TV) ads

• Day-after recall (DAR)

• Unaided recall (no mention of brand)

• Aided recall (prompted with mention of brand)

• Advertisers approach consumers directly with products or services without use of intermediary or via other media

• For products with very well targeted markets, traditional media may not always be the best, and definitely not the most economical

• The right list

• The right message

• Approximately 30% of names on a list will be obsolete in a year

• House list – (keeping list of own customers, the crown jewel of lists)

• Response list – (may have responded to an ad or mailing – have expressed an interest)

• Compiled list – (bought from a list broker or publication)

• Viewed as low-pressure sales tactics.

• Catalogs saved for a longer period of time.

• Catalogs often passed along to others or viewed by others.

• Key is the use of enhanced database and targeting of catalogs.

Goal is to move the person to action

• Price reduction to a consumer (cuts revenue to company)

• 80% are distributed by manufacturer

• Can lead to abuses like counterfeiting or mistakes by store employees

• 64% are willing to switch brands with coupons

• Commonly distributed via FSI (Free Standing Inserts)

• Most effective when they have a high face value

• Instant redemption coupon – (most common - consumer redeems it when making the purchase)

• Bounce-back coupon – (included in package to encourage repeat purchases)

• Scanned-delivered – (used at cash register when checking out)

• Cross-ruffing – (place coupon for one product on another product used with it)

• Response offer – (consumer makes request for coupon)

• Cash award given to consumers after they purchase a product

• Returns an amount of  money, or could be a coupon to encourage more purchases


~ Careful not to make it a standard or customers will always wait for the rebate before buying

Allowing the consumer to try the product or service

• Create excitement by promising something for nothing

• Contests based on skill or ability

• Sweepstakes based on luck

• Tangible reward for a particular act

• Work by adding value to the product

• Store premiums

• In-pack premiums

• On-pack premiums

• Container premiums

• Self-liquidating (consumer pays some of cost)

• Presents the brand’s name on something that is given away as a reminder

• Work better when related to product, like this shoe bag for exercise company

• Point-of-purchase (POP) ads
• • Display ads located in stores, usually at the end of an aisle

• Works best for impulse items

• Can have effective influence on consumer decisions

• Designed to reward those that sell the most product (within time frame)

• Could be between stores, salespeople, brokers, wholesalers, agents (channels of distribution)

• Used to achieve sales targets.

• Funds known as “spiff money.”

• Rewards can be prizes or cash.

• Can be designed for various channel members.

• Some organizations do not allow trade contests because of possible conflict of interests.

• Money paid to retailers to stock a new product

• Retailers will give product prime shelf space

• Particularly the case with supermarkets

• It’s possible for supermarket to make more money on slotting fee than on sales of product

• New products involve risk, so this system offers some compensation for failures

• System favors large companies with deep pockets

• Pull strategy – using a consumer promotion to encourage buyers to visit stores and buy, even ask for product, so a coupon or other incentive is used

• Push strategy – aimed at the wholesale or retail stores – run a promotion to the seller, such as in store sales people, so they will “push” product to consumers

• Manufacturer reimburses retailer for a percentage of advertising costs for promoting the manufacturer’s product

• Mfg. Must approve ad

• Usually tied to sales

When companies in the same industry gather to present and sell merchandise and demonstrate products

• Sponsorships are lending marketing support to associate the company name or product  to support an event

• Event marketing is building a program around a sponsored event

Promotions used at events by companies that are not official sponsors

Two companies work together to offer a product

Giving another company right to use brand or trademarked products.

• What a group of people think

• Opinion leaders

• One primary goal of PR is to influence public opinion

• House ads

• Public service announcements

• Corporate advertising

• Focus is on the product

• • Find something “newsworthy” to expect any coverage (don’t send out too many or they will be ignored)
• - something new
• - something unusual
• - solved a problem
• - no guarantees it will appear
• - have contact person

• Retail marketing is about selling and shopping

• Occurs on local, national, and international levels

• Accounts for nearly half of all advertising dollars

• Primary goal is to build store traffic

• Promotional Retail ad
• • Emphasizes price

• Institutional Retail ad
• • Advertises the store as the brand

• North American Industry Classification System

• Replaced the SIC (Standard Classification System) several years ago

• Offers businesses info to segment target markets by industry

• Uses 6 digit code vs. old SIC of 4 digit

• Usually not made individually

• • Higher the cost, more likely a group decision
• - Users (actually use the product)
• - Buyers (may be purchasers, but can be others here too)
• - Influencers (don’t  buy, but could write specs for what is bought)
• - Deciders (decision makers)
• - Gatekeepers (point of contact – must work through them since they shield the seller from others in company)

• Also need to identify right media

• Reaching the right person may be critical, since a designer may be key person

The use of marketing programs and marketing communication tools for the good of society

Global Warming

• Adopting a good cause and sponsoring community and fund-raising efforts

• Links a company’s mission and core values to a cause