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LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 18, YOU SHOULD BE ABLE TO:
LO 18-1
Explain the differences between product
advertising and institutional advertising
and the variations within each.
LO 18-2
Describe the steps used to develop,
execute, and evaluate an advertising
program.
LO 18-3
Explain the advantages and
disadvantages of alternative
advertising media.
18-2
LEARNING OBJECTIVES (LO)
AFTER READING CHAPTER 18, YOU SHOULD BE ABLE TO:
LO 18-4
Discuss the strengths and weaknesses
of consumer-oriented and trade-oriented
sales promotions.
LO 18-5
Recognize public relations as an
important form of communications.
18-3
WHAT IS THE KILLER APP OF
ADVERTISING? TELEVISION!
18-4
LO 18-1
TYPES OF ADVERTISEMENTS
PRODUCT ADVERTISEMENTS

Advertising

Product Advertisements
• Pioneering
(or Informational)
• Reminder
• Competitive
(or Persuasive)
• Reinforcement
• Comparative
18-5
LO 18-1
DiGiorno, Fidelity, and Dove
What is the type and purpose of each ad?
18-6
LO 18-1
Dial Soap
What is the type and purpose of this ad?
18-7
LO 18-1

TYPES OF ADVERTISEMENTS
INSTITUTIONAL ADVERTISEMENTS
Institutional Advertisements
• Advocacy
• Pioneering Institutional
• Competitive Institutional
• Reminder Institutional
18-8
LO 18-1
Chevron and Bridgestone
What is the type and purpose of each ad?
18-9
LO 18-1
Got Milk? and U.S. Army
What is the type and purpose of each ad?
18-10
LO 18-2
DEVELOPING THE
ADVERTISING PROGRAM

Identifying the
Target Audience

Specifying the
Advertising Objectives

Setting the
Advertising Budget
18-11
FIGURE 18-1 The Super Bowl delivers a huge
audience if you can afford the cost of placing
an ad
18-12
MARKETING INSITE
LO 18-2
See Your Favorite Super Bowl Ads
Again, and Again!
18-13
LO 18-2
DEVELOPING THE
ADVERTISING PROGRAM
DESIGNING THE ADVERTISEMENT

Message Content

Types of Appeals
• Informational
Element
• Fear Appeals
• Persuasive
Element
• Sex Appeals
• Humorous Appeals
18-14
LO 18-2
World Wide Fund, Candie’s, and Geico
What is the appeal and purpose of each ad?
18-15
DEVELOPING THE
ADVERTISING PROGRAM
LO 18-2
DESIGNING THE ADVERTISEMENT

Creating the Actual Message
72andSunny
• Celebrity
Spokespeople
K-Swiss
• Ideas and
Artwork
• Cost
18-16
LO 18-2
DEVELOPING THE
ADVERTISING PROGRAM
SELECTING THE RIGHT MEDIA

Advertising Media

Media Planning Goals
• Maximize Exposure
• Minimize Costs
18-17
FIGURE 18-2 Television, direct mail, and
newspapers account for more than 60% of all
advertising expenditures ($ in millions)
18-18
LO 18-2
DEVELOPING THE
ADVERTISING PROGRAM
SELECTING THE RIGHT MEDIA

Basic Terms
• Reach
• Rating
• Frequency
• Gross Rating Points (GRPs)
= Reach × Frequency
• Cost per Thousand (CPM)
18-19
LO 18-2
USING MARKETING DASHBOARDS
What is the Best Way to Reach 1,000 Customers?
Cost per Thousand (CPM) Impressions
18-20
FIGURE 18-3 Advertisers must consider the
advantages and disadvantages of the many
media alternatives
18-21
LO 18-3
DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES

Television
• Zero TV
• Out-of-Home TV
18-22
LO 18-3
DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES

Television
• Wasted Coverage
• Cable and Satellite TV
• Infomercials
18-23
DEVELOPING THE
ADVERTISING PROGRAM
LO 18-3
DIFFERENT MEDIA ALTERNATIVES

Radio
• Satellite Radio
• Drive Times
18-24
LO 18-3
DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES

Magazines
• Regional Issues
18-25
LO 18-3
DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES

Newspapers
• Falling Circulation & Ad Revenue
• Online and Mobile Editions
• New Types of News Organizations
18-26
LO 18-3
DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES

Yellow Pages
18-27
LO 18-3
DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES

Internet
• Rich Media
• Paid Search
• Banner/Display Ads
• Assessment
18-28
FIGURE 18-4 Google, Microsoft, and Yahoo!
have the largest shares of Internet searches
and offer opportunities for online advertising
18-29
LO 18-3
MAKING RESPONSIBLE DECISIONS
Who is Responsible for Click Fraud?

Pay-to-Read

Click Bots

Webtipping
18-30
LO 18-3
DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES

Outdoor
• Billboards
• Transit
Advertising
18-31
LO 18-3
DEVELOPING THE
ADVERTISING PROGRAM
DIFFERENT MEDIA ALTERNATIVES

Other Media
• Placed-Based Media

Selection Criteria
• Media Habits
• Cost
• Product Attributes
18-32
LO 18-3
DEVELOPING THE
ADVERTISING PROGRAM
SCHEDULING THE ADVERTISING

Factors to Consider
• Buyer Turnover
• Purchase Frequency
• Forgetting Rate
18-33
LO 18-3
DEVELOPING THE
ADVERTISING PROGRAM
SCHEDULING THE ADVERTISING

Approaches
• Continuous (Steady) Schedule
• Flighting (Intermittent) Schedule
• Pulse (Burst) Schedule
18-34
LO 18-3
EXECUTING THE
ADVERTISING PROGRAM
PRETESTING THE ADVERTISING

Pretests
• Portfolio Tests
• Jury Tests
• Theater Tests
18-35
LO 18-3
EXECUTING THE
ADVERTISING PROGRAM
CARRYING OUT THE ADVERTISING PROGRAM

Full-Service Agency

Limited-Service Agencies

In-House Agencies
18-36
FIGURE 18-5 Alternative structures of
advertising agencies used to carry out the
advertising program
18-37
LO 18-3
ASSESSING THE
ADVERTISING PROGRAM
CARRYING OUT THE ADVERTISING PROGRAM

Posttests

Aided Recall

Unaided Recall
• Noted

Attitude Tests
• Seen-Associated

Inquiry Tests
• Read Most

Sales Tests
18-38
FIGURE 18-6 Sales promotions can be used to
achieve many objectives
18-39
LO 18-4
SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION

Consumer-Oriented Sales Promotion

Coupons
18-40
LO 18-4

SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
Deals
18-41
LO 18-4

SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
Premiums
• Self-Liquidating: Free Toy in Happy Meal
• Deal-Prone & Value Seeing Consumers
18-42
LO 18-4

SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
Contests
18-43
LO 18-4

SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
Sweepstakes
• Value-Based Prizes
• Experience-Based Prizes
18-44
LO 18-4

SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
Samples
18-45
LO 18-4

SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
Loyalty Programs
18-46
LO 18-4

SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
Point-of-Purchase Displays
18-47
LO 18-4

SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
Rebates
18-48
LO 18-4

SALES PROMOTION
CONSUMER-ORIENTED SALES PROMOTION
Product Placement
18-49
LO 18-4
SALES PROMOTION
TRADE-ORIENTED SALES PROMOTION

Trade-Oriented Sales Promotion

Allowances and Discounts
• Merchandise Allowance
• Case Allowance
 Free Goods
• Finance Allowance
 Floor Stock Protection
 Freight Allowance
18-50
LO 18-4
SALES PROMOTION
TRADE-ORIENTED SALES PROMOTION

Cooperative Advertising

Training of Distributors’ Salesforces
18-51
LO 18-5

PUBLIC RELATIONS
Publicity Tools
• News Release
• Public Service
Announcement (PSA)
• News Conference
18-52
LO 18-5
INCREASING THE VALUE OF PROMOTION

Building Long-Term Relationships

Self-Regulation
18-53
VIDEO CASE 18
GOOGLE, INC.: THE RIGHT ADS
AT THE RIGHT TIME
18-54