Marketing II
The Chang School-Ryerson University
Continuing Education
Instructor: Armand Gervais
Email: agervais@ryerson.ca preferred
Web: www.ryerson.ca/~agervais
Office: Bus 308
Phone: 416-979-5000 Ext 4215
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Lecture 6 Agenda
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Don’t Forget Name Tags
Chapter 19
Break
Time to work in Groups
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
CHAPTER
ADVERTISING,
SALES PROMOTION,
AND
PUBLIC RELATIONS
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
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Explain the differences between product
advertising and institutional advertising and
the variations within each type.
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Understand the steps used to develop,
execute, and evaluate an advertising program.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
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Explain the advantages and dis-advantages of
alternative advertising media.
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Understand the strengths and weaknesses of
consumer-oriented and trade-oriented sales
promotions.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
AFTER READING THIS CHAPTER
YOU SHOULD BE ABLE TO:
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Recognize public relations as an important
form of communications.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Coca-Cola Soccer Photo
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
ADVERTISING, SALES
PROMOTION, AND PUBLIC
RELATIONS
WHAT’S THE FUTURE OF
ADVERTISING? THE
ANSWER IS PERSONAL!
Contextual marketing??
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
TYPES OF ADVERTISEMENTS
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Product Advertisements
Institutional Advertisements
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Jeep Ad
Pioneering,
competitive, or
reminder?
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Xerox Ad
Pioneering,
competitive, or
reminder?
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FTD Ad
Pioneering,
competitive, or
reminder?
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Got Milk? Ad
Competitive institutional
advertisement
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Mac-Gray
Print Ad
Pioneering
institutional
advertisement
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Tobacco is
Whacko Ad
Advocacy advertisement
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Concept Check
1. What is the difference between
pioneering and competitive ads?
A: Pioneering ads tell people what a
product is, whereas competitive ads
promote a specific brand’s features
and benefits.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. What is the purpose of an institutional
advertisement?
A: To build goodwill or an image for
an organization.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
DEVELOPING THE
ADVERTISING PROGRAM
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Identifying the Target Audience
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Xbox Mature adult
Specifying Advertising Objectives
Communicate other benefits besides gaming
 Ease of use Time shifting
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Setting the Advertising Budget
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
FIGURE 19-1 Super Bowl, super dollars. Pepsi and Monster.com
place ads on the Super Bowl
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
DEVELOPING THE
ADVERTISING PROGRAM
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Designing the Advertisement
Message Content
 Creating the Actual Message
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Penn Ad:
Official Ball of
1988 French
Open
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Pepsi TV Ad: “Britney Now & Then”
Reinforcement ad with spokesperson
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Pepsi TV Ad: “Testimonial”
Spokesperson with humorous appeal
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Pepsi TV Ad: “Jackson Streets”
Competitive Ad
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Diet Pepsi TV Ad: “Uh Huh”
Reinforcement ad with spokesperson
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Sierra Mist TV Ad: “Pachanga”
Pioneering ad with sex appeal
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Mountain Dew TV Ad: “Ram”
Reminder ad with humorous appeal
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Xerox Ad
Comparative Ad
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PETA TV Ad: “Singing Cows”
Advocacy ad with humorous appeal
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Shell TV Ad: “Deadly Distractions”
Advocacy ad with fear appeal
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Golden Plump Chicken TV Ad
Competitive ad featuring humorous appeal
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Hush Puppies TV Ad
Pioneering ad featuring humorous appeal
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. What are the characteristics of good
advertising objectives?
A: (1) A well-defined target audience,
(2) measurable, and (3) over a
specific time period.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. What is a potential shortcoming of
using a celebrity spokesperson?
A: The spokesperson’s image may
change to become inconsistent with
the company or brand.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
DEVELOPING THE
ADVERTISING PROGRAM
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Selecting the Right Media
 Choosing
a Medium and a Vehicle within
That Medium
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FIGURE 19-2 U.S. advertising expenditures,
by category (data in millions of dollars)
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
DEVELOPING THE
ADVERTISING PROGRAM
 Basic
Terms
 Reach
 Rating
 Frequency
 Gross
Rating Points
 Cost Per Thousand
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
FIGURE 19-3 The language of the media buyer
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TNN Ad
Print ad for
cable station
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
DEVELOPING THE
ADVERTISING PROGRAM
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Different Media Alternatives
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Television
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Infomercials
Radio
 Magazines
 Newspapers
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
DEVELOPING THE
ADVERTISING PROGRAM
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Different Media Alternatives (cont)
Internet
 Outdoor
 Other Media
 Selection Criteria
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Scheduling the Advertising
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
FIGURE 19-4 Advantages and disadvantages of
major advertising media
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TV storyboards lead to commercials, which
communicate with sight, sound, and motion
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Captivate TV
Network
Elevator Ad
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DEVELOPING THE
ADVERTISING PROGRAM
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Scheduling the Advertising
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. You see the same ad in Time and
Fortune magazines and on billboards and
TV. Is this an example of reach or
frequency?
A: Frequency
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. Why has the Internet become a
popular advertising medium?
A: Large new audience, offers
advantages over other forms
primarily through combining their
advantages, offers potential for
tracking effectiveness.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
3. What factors must be considered when
choosing among alternative media?
A: Target audience media habits,
product attributes, and cost.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
EXECUTING THE
ADVERTISING PROGRAM
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Pretesting the Advertising
Portfolio Tests
 Jury Tests
 Theater Tests
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FIGURE 19-5 Alternative structures of advertising agencies
used to carry out the advertising program
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EXECUTING THE
ADVERTISING PROGRAM
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Carrying Out the Advertising Program
Full-service agency
 Limited-service agencies
 In-house agencies
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
EVALUATING THE
ADVERTISING PROGRAM
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Posttesting the Advertising
Aided Recall (Recognition-Readership)
 Unaided Recall
 Attitude Tests
 Inquiry Tests
 Sales Tests
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Making Needed Changes
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Skechers Ad
Starch scores
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. Explain the difference between pretesting
and posttesting advertising copy.
A: Pretesting is done to test alternative copy
or to determine whether the ad
communicates the intended message.
Pretests are done before the ad is placed
in the media. Posttesting determines
whether the ad accomplished its
intended purpose.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. What is the difference between aided
and unaided recall posttests?
A: With aided recall, respondents see
one or more actual ads on which
they comment. With unaided recall,
respondents are shown no ads and
must rely on memory alone.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
SALES PROMOTION
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The Importance of Sales Promotion
Consumer-Oriented Sales Promotion
Coupons
 Deals
 Premiums
 Contests
 Sweepstakes
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
SALES PROMOTION
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Consumer-Oriented Sales Promotion (cont)
Samples
 Continuity Programs
 Point-of-Purchase Displays
 Rebates
 Product Placement
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
FIGURE 19-6 Sales promotion alternatives
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Tom Cruise
Photo
Can you identify
the product?
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
SALES PROMOTION
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Trade-Oriented Sales Promotions
Allowances and Discounts
 Cooperative Advertising
 Training of Distributor’s Salesforces
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© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
1. Which sales promotional tool is most
common for new products?
A: Samples
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Concept Check
2. What’s the difference between a
coupon and a deal?
A: A coupon provides a reduced price
for an item based on redemption. A
deal is a short-term price reduction.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
3. Which trade promotion is used on an
ongoing basis?
A: Trade allowance
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PUBLIC RELATIONS
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Publicity Tools
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INCREASING THE VALUE
OF PROMOTION
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Building Long-Term Relationships
with Promotions
Self-Regulation
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Concept Check
1. What is a news release?
A: An announcement regarding
changes in a company or its product
line.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Concept Check
2. What is the difference between government
regulation and self-regulation?
A: Government regulation involves laws or
other controls set by an agency or local,
state, or federal government, whereas
self-regulation involves ethical guidelines
for business practices set by advertising
agencies, trade associations, and
marketing organizations.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Internet Exercise
1 Recommend three websites for your college
or university to advertise on. You can use
www.adhome.com to help. What is the
monthly rate for a full banner ad at each of the
websites?
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Internet Exercise
2 Describe the profile of the audience for each
of the websites.
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Internet Exercise
3 Calculate the CPM for each website.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Fallon Worldwide: In the
Creativity Business
Lee Dungarees Ad – Buddy Lee
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
VIDEO CASE 19-1
Fallon Worldwide: In the Creativity Business
1
Fallon Worldwide stresses its creativity, as shown
by comments from the Fallon people in the case. (a)
In what ways do the Lee Dungarees and BMW
campaigns reflect their creativity? (b) Compare the
sources of the ideas in the two campaigns.
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
VIDEO CASE 19-1
Fallon Worldwide: In the Creativity Business
2
In the Lee Dungarees and BMW campaigns, how
were (a) the target markets and (b) each brand’s
positioning changed from the situation prior to the
campaign?
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
VIDEO CASE 19-1
Fallon Worldwide: In the Creativity Business
3
The case does not discuss the media used in the
Buddy Lee campaign. What media and
communication vehicles should it use initially (a) to
reach the target market of 17- to 22-year-olds? (b) to
continue to reach them after the first couple of years of
the campaign?
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
VIDEO CASE 19-1
Fallon Worldwide: In the Creativity Business
4
The case also does not discuss the development of
media in BMW’s “The Hire” campaign. (a) How
could BMW and Fallon launch the films most
successfully on the Internet? (b) What other media
might they use after that launch?
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
VIDEO CASE 19-1
Fallon Worldwide: In the Creativity Business
5
How might Fallon and its clients measure the
success of (a) the Lee Dungarees and (b) the BMW
campaigns?
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
Feedback for X-box
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Overall marks were very good, they ranged from F to A
Special care should be taken with grammar, spelling and format
Errors in executive summary are unacceptable
Do not repeat facts from the case in executive summary or tell me what you did in the
report. Tell me what you learned!
I should be able to determine the logic for your recommended marketing mix and the
details of that mix from the Executive Summary
State issues, conclusions and implications after analysis in appendices
Bring this insight into the main report and suggest a course of action.
Analysis is not just filling in the facts
Must make a statement about the implications or identify an issue that relates to the
analysis or impacts marketing mix
Example: Impact of convergence: One segment that is underserved is older adults
30-50 who may be interested in some of the added features of X360. Since the X360
has a large hard drive it is able to record Television and allow users to watch later. If
this was easy to do like TiVo this segment would be interested in purchasing the X360
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin
To Do’s for Next Class
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Begin to study for Final Exam
Work on Final group project
© 2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin