advertising and sales promotion dsbs 2013-15

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    ADVERTISING & SALESPROMOTION

    PGDM II year DSBS 2013-15

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    Only the brave or ignorant can say

    exactly what advertising does in themarket place

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    Is your Advertising getting results? It sure

    is! Last week we advertised for a night-watchman and the next night we were

    robbed

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    Session-I

    Introduction to

    Advertising

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    Marketing Defined

    Marketing is a societal process, by which individuals and

    groups obtain what they need and want through creating,

    offering, and freely exchanging products and services of value

    with others.

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    Marketing Mix

    Product

    Price

    Promotion

    Place

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    Promotional Mix

    Sales promotion

    Advertising

    Sales force

    Public relations, Publicity Direct mail, Telemarketing and Internet

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    Promotion

    The coordination of all seller-initiated efforts to set up

    channels of information and persuasion in order to sell goods

    and services or promote an idea.

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    Elements of Promotional Mix

    PromotionalMix

    Advertising

    Direct

    Marketing

    Sales

    Promotion

    Publicity /PR

    Personal

    Selling

    Interactive /Internet

    Marketing

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    Concept and Definition of Advertisement

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    Advertising

    Advertising is any paid form of non personal presentation and

    promotion of ideas, goods, or services by an identified

    sponsor.

    52 possible ad objectives (Russell Colley)

    Major objectives are: Inform, Persuade or Remind

    Art of telling and selling

    Can be given at three periodsBefore need arises

    By the time of the need

    After the need arises

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    Paid Aspect

    The space or time for an advertising message generally must

    be bought. In case of Public Service Announcements (PSA)

    whose advertising space or time is donated by the media.

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    Non Personal Aspect

    Non personal component means that advertising involves

    mass media. (e.g. TV, radio, magazines, newspapers) that can

    transmit a message to large groups of individuals, often at the

    same time.

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    Introduction to Advertisement

    The activity of attracting public attention to a product orbusiness, as by paid announcements in the print,broadcast, or electronic media.

    Paid form of a non personal message communicatedthrough the various media by industry, business firms,nonprofit organizations, or individuals. Advertising ispersuasive and informational and is designed to influencethe purchasing behavior and/or thought patterns of theaudience. Advertising is a marketing tool and may beused in combination with other marketing tools, such assales promotions, personal selling tactics, or publicity.

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    What is Advertising?

    Three criteria must be met for a communication to beclassified as advertising:

    The communication must be paid for.

    The communication must be delivered through mass media.

    The communication must be

    attempting to persuade.

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    5 Ms of Advertising

    Mission

    Money

    Message

    Media Measurement

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    Advertising characteristics

    Paid form

    About ideas, goods or services

    Maximum control over the message

    Inform and persuade Has its selected market

    Less credible

    Subjective

    Product brand related message

    Non personal communication

    By an identified sponsor

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    Forms of Advertisements

    Advocacy

    Comparative

    Cooperative

    Direct-mail

    Informational

    Institutional

    Outdoor

    Persuasive

    Product

    Reminder

    Point-of-purchase

    Specialty advertising.

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    Classification of Advertising

    For whom (target audience- Industrial, Consumer)

    Geographic coverage (local, regional, national, international)

    Media used (print, electronic, direct mail, outdoor)

    Aim(financial, demand, social messages, direct action)

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    Audience Geography

    Global

    International

    NationalRegional

    Local

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    Audiences for Advertising

    Household Consumers

    Business Organizations

    The Trade Channel

    Professionals Government

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    Functions of advertising

    Informs the buyers

    Offers an incentive

    Reminds the benefits

    Stimulates to try the product once Builds brand

    Reduces selling costs

    Persuades people

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    Session II

    Social, Ethical & Legal

    Aspects

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    Social Implications of Advertising

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    Social aspects of advertising

    Consumerism

    Consumer culture

    Consumer awareness

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    Consumerism

    Ability and capability of consumers to purchase various goods

    & services

    After industrial revolution (preference to consumers)

    Advancement in areas of education and research, technology

    in all fields have been continuously upgraded

    It resulted in increased production, increased employment

    opportunities, generation of income, distribution and friendly

    consumption.

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    Consumer culture

    Improves the culture of the consumers

    The growth of consumer culture diverted the purchasing

    power of middle class people towards the purchase of

    products like TV, refrigerator, air cooler, cellular phone, etc

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    Consumer awareness

    There are more than 20 legislative enactments in India to

    protect the rights of the consumers

    The ad should help to protect the rights of the consumers

    Education and media played a significant role to create

    awareness among consumers

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    Economic Implications of Advertising

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    Role of advertising in Economy

    All that ad has to do is to sell a product or service

    Ads do the sales job better

    Performs economic function by being an art of persuasion

    Ads create wide markets

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    Effects of Advertising

    Effects of advertising on costs

    Effects of advertising on total marketing costs

    Effects of advertising on total manufacturing costs

    Effects of advertising on price

    Prevents price competition for a longer period

    Effects of advertising on quality

    Stimulates product improvement

    Effects of advertising on investment and the level of national

    income

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    Ethical & Legal Implications of Advertising

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    Code of Advertising Ethics in India

    Advertising shall be designed as to confirm to the laws of the

    country and should not offend against morality, decency and

    religious susceptibilities of the people.

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    General rules of conduct in advertising

    Derides any race, caste, color, creed and nationality; Is against any of the directive principles, or any other provision

    of the Constitution of India;

    Tends to incite people to crime, cause disorder or violence, or

    breach of law or glorifies violence or obscenity in any way; Presents criminality as desirable;

    Adversely affects friendly relations with foreign States;

    Exploits the national emblem, or any part of the constitution

    or the person or personality of a national leader or StateDignitary;

    Relates to or promotes cigarettes and tobacco products, liquor,

    wines and other intoxicants;

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    General rules of conduct in advertising

    No advertisements message shall in any way be

    presented as News.

    Advertisements for services concerned with the

    following shall not be accepted:- Money lenders;

    Chit funds;

    Saving schemes and lotteries other than those conducted by

    Central and State Government organisations, nationalised orrecognized banks and public sector undertakings;

    Matrimonial agencies;

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    General rules of conduct in advertising

    Unlicensed employment services;

    Fortune tellers or sooth-Sayers etc. and those

    with claims of hypnotism;

    Foreign goods and foreign banks.

    Betting tips and guide books etc. relating to

    horse-racing or the other games of chance.

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    General rules of conduct in advertising

    No advertisement shall contain references which are likely to

    lead the public to infer that the product advertised or any

    advertised or any of its ingredients has some special or

    miraculous or super-natural property or quality, which is

    difficult of being proved, e.g. cure for baldness, skin whitener,etc.

    Advertisements shall not contain disparaging of derogatory

    references to another product or service.

    Testimonials must be genuine and used in a manner not tomislead the listeners. Advertisers or Advertising Agencies must

    be prepared to produce evidence in support of their claims.

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    General rules of conduct in advertising

    No advertisement of any kind of jewellery (except artificialjewellery) or precious stones shall be accepted.

    Information to consumers on matters of weight, quality orprices of products where given shall be accurate.

    Advertisements indicating price comparisons or reductionsmust comply with relevant laws.

    Advertisements for products specifically offered to womenshall not be advertised as products that are effective ininducing miscarriage.

    Advertisements relating to claims about curing of sexualweakness, premature ageing, loss of virility, sexual excessesetc. shall not be accepted.

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    General rules of conduct in advertising

    There should be no exaggerated claims regarding the composition, character,

    action and suitability of the purpose for which it is recommended.

    When words such as college, clinic, institute and laboratory are used in

    advertisements, such references can be made only when the said

    establishment does actually exist.

    The portrayal of the female form shall be aesthetic and within the well

    established norms of good taste and decency.

    Women must not be portrayed in derogatory light and in a manner that

    emphasizes passive, submissive qualities and encourages them to play a

    subordinate and secondary role in family and in society.

    Scientific or statistical excerpts from technical literature etc. may be used

    only with a proper sense of responsibility to the ordinary viewer.

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    Rules and acts framed to maintain

    standards in advertising Drugs and Cosmetics Act, 1940.

    Drugs Control Act, 1950.

    Drugs and Magic Remedies (Objectionable Advertisement) Act, 1954.

    Copyright Act, 1957.

    Trade and Merchandise Marks Act, 1958.

    Prevention of Food Adulteration Act, 1954.

    Pharmacy Act, 1948.

    Prize Competition Act, 1955.

    Emblems and Names (Prevention of Improper Use) Act, 1950.

    Consumer Protection Act, 1986.

    Indecent Representation of women (Prohibition) Act, 1986.

    AIR / Doordarshan Code.

    Code of Ethics for advertisement in India issued by the Advertising Council of India

    Code of standards in relation to the advertising of medicines and treatments

    Standards of practice for Advertising Agencies

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    Ethics in advertising

    Advertising should be in conformity with the laws of land

    Advertisements should not be done against the cultural, religious and

    aesthetic values of the people

    It should not propagate hatred and defame the peace of the nation

    It should not aim to exploit the illiteracy and superstition of the people togain benefits

    Advertisements should disseminate factual information

    Advertisement should not hide or divert facts (They can inform the

    ingredients of the product and the need for using the product)

    Misleading statements (visual or verbal) should be avoided Price, quality, procedure to procure, guarantee and warranty etc. should be

    communicated with utmost care and prudence (cautiousness)

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    Ethics in advertising

    Comparisons which unfairly disparage (criticize) a competitive

    product for service should be avoided

    No advertisement should encourage or instigate the people to

    practice illegal practices

    Patent marks of other reputed concerns should not be used to

    cheat the consumers

    Obscene words / scenes in advertisements should be avoided

    Without real intention, it should not be announced that

    money will be returned if the purchaser is not satisfied with

    the products

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    Ethics in advertising

    Apart from state advertisements, national symbols

    and the photographs of national leaders should not

    be used without getting prior permission from the

    competent authorities concerned No advertising should canvass for pawn broking,

    deposits for unregistered financial firms and

    employment bureaus, bogus marriage brokerage,

    astrology and magical skills.

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    Legal issues of advertising

    Article 19 (1) all citizens shall have the right to freedom of

    speech & expression.

    Article 19(1) a - restricts & prohibits the ads for drugs

    Article 19(2)right to information and expression can be

    resticted on the following grounds

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    Legal issues of advertising

    Security of the state

    Friendly relations with foreign states

    Public order

    Decency of morality

    Contempt of court

    Defamation

    Incitement (encouragement) of an offence

    Sovereignty and integrity of India

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    Legal issues of advertising

    Obvious untruths and exaggeration

    Advertisements should not depict children leaning

    dangerously outside windows, over bridges or climbing

    dangerous hills.

    Advertisement should not show children using or playing with

    matches or any inflammable or explosive substance

    Viz. playing with knives, guns & electrical appliances

    Advertisements shall not propagate products the use of which

    is banned under law

    Comparisons should be factual and accurate.

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    Session IIIAdvertising Agency

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    Advertising Agency

    Advertising agency is defined as an organisation whose

    business consists in acquisition as a principal of the right to use

    space or time in advertising media and the administration on

    behalf of the advertisers, of advertising appropriations made

    by them.

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    Tasks of an advertising agency

    Copy writing

    Art pictures & photographs

    Media planning & buying of space

    Radio & televisionproducing commercial spotsThe work of market research

    Production film or tape for use

    Public relations

    Forwarding the advertising materials to the mediaowners and the clients in time

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    Agency should require

    Sales ability

    Creative ability

    Management ability

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    Types of Advertising Agencies

    Full Service Agencies

    Creative Boutique

    Interactive Agency

    In-House Agency

    Media-Buying Agency

    Direct Marketing Agency

    E-Commerce Agencies

    Sales Promotion Agencies

    Event-Planning Agencies

    Design Firms

    Public Relations Firms

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    Full-service advertising agency

    A full service agency typically includes an array of advertising

    professionals to meet all the promotional needs of clients.

    Full service agencies are not necessarily large organisations

    employing hundreds or even thousands of people.

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    Advantages of using a full service ad agency

    In-depth knowledge and skills

    Obtaining negotiating muscle with the media

    Coordinating advertising and marketing efforts

    Use services only when they are needed

    Availability of high-caliber creative talent

    Potential cost efficiencies

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    Disadvantages of using a full service ad

    agency

    Some control is lost

    Larger clients are favored over small clients

    Occasionally inefficient in media buying

    Specialists approach client problems in a stereotyped fashion

    Lack of cost accountability

    Financial instability of smaller boutiques

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    Steps in selecting an advertising agency

    The size of the agency.

    The relevant experience of the agency.

    Conflicts of interest.

    Creative reputation and capabilities.Production capabilities.

    Media purchasing capabilities.

    Other services available.

    Client retention rates.

    Personal chemistry

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    Steps in selecting an advertising agency

    Identify and prioritize corporate goals.

    Develop agency selection process and criteria.

    Initially screen firms based on credentials, size, capabilities,

    relevant experience and conflict of interests.

    Request client references.

    Do background check with other firms and media agents.

    Request written and oral presentation.

    Meet creatives, media buyers, account executives and otherpersonnel that will work with account.

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    Capabilities of an ad agency

    Marketing & media planning

    Research & analysis

    Advertising campaignslocal, regional & national

    Creative concept / copywriting

    Logo / corporate identity development

    Graphic design & production

    Direct marketing programs

    Media placement Public relations / special event planning

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    Ad agency Remuneration

    Three methods used to compensate ad agencies

    Commission

    Negotiated fee

    Percentage charges

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    Compensation of Ad Agencies

    Initially agencies just sold space for the media and made

    money

    Marketed space for the press and the magazines

    Paid on the basis of amount of space they sold by the media

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    Media Commissions

    Media commission is an amount paid by the media to an

    agency which has bought space or time for its clients

    Generally 15% on the space sold by an agency

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    Reasons for losing clients

    The clients dissatisfaction with the agencys performance

    with regard to advertising quality or service

    Poor communication between the client and the agency

    personnel hinders a good working relationship

    Personality clashes between client and agency personnel

    Unrealistic client demands, which reduce the accounts

    profitability for the agency

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    Reasons for losing clients

    New managers in clients organisation may want to use an

    agency with which they already have established ties.

    Often when agencies merge, there is a conflict of interest as

    two close competitors may be on the merged agencys

    account list.

    Changes in the clientsmarketing strategy may lead to change

    of agency.

    When the companyssales decline, the advertising agency is

    viewed as unsuitable and the agency changed

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    Reasons for losing clients

    The client may insist upon adopting a compensation method

    to which the agency disagrees

    When some companies or agencies outgrow in size, either may

    think the other unsuitable and sever the ties

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    Session IVAdvertisement Media

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    What media to use?

    Media Planning and Types

    What channel will be most effective to reach target market(s)

    Depends heavily on promotional objectives

    What is it the company wants to convey? Action of the product

    itself? Credibility of company or service? Brand name?

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    Major Types of Advertising Media

    Newspapers

    Magazines

    Radio

    Television

    Outdoor Media

    Internet

    Alternative Media

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    Considerations for selecting Media

    The media mix decisions Cost per contact

    Reach

    Frequency

    Target audience characteristics

    Mediums flexibility

    Noise level

    Life span of medium

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    Session V

    Communication Process:Source, Message & Channel

    factors

    The Communications Process

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    Attractive sources are appropriate for image-relatedd t

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    products

    +

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    The Semiotic (symbols & signs) Perspective

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    Object

    Brand such as

    Marlboro

    Sign or symbol

    representing intendedmeaning (Cowboy)

    Interpretant/

    intended meaning

    (masculine,ruggedindividualistic)

    Object

    Brand such as

    Marlboro

    Sign or symbol

    representing intendedmeaning (Cowboy)

    ( y g ) p

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Three Components to every marketing message

    What is the symbolic meaning of the Snuggle bear?

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    y g gg

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin +

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    Forms of Personal Communication

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    Grammar

    Vocabulary

    Inflection

    FacialExpression

    Gesture

    Body Language

    Vocabulary

    Grammar

    Inflection

    (modulation)

    Gesture

    FacialExpression

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Verbal

    Nonverbal

    Communications Channels

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    Personal ChannelsPersonal Channels

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    NonpersonalChannels

    Personal Selling

    Word of Mouth

    Print

    Media

    Broadcast

    Media

    Experiential Overlap

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    ReceiverExperience

    SenderExperience

    Different Worlds

    ReceiverExperienceSender

    Experience

    Moderate Commonality

    ReceiverExperience

    SenderExperience

    High Commonality

    ReceiverExperience

    Levels of Audience Aggregation

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    Mass Markets

    Market Segments

    Niche Markets

    Small Groups

    Individuals

    Niche Markets

    Market Segments

    Mass Markets

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Small Groups

    Models of the Response Process

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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    Models of Obtaining Feedback

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Exposure, Presentation

    Attention

    Comprehension

    Message Acceptance/Yielding

    Retention

    Purchase Behavior

    Circulation Reach

    Listener, Reader,Viewer Recognition

    Recall, Checklists

    Brand Attitudes,Purchase Intent

    Recall Over Time

    Inventory, POPConsumer Panel

    RetentionRecall Over Time

    Message Acceptance/Yielding

    Brand Attitudes,Purchase Intent

    ComprehensionRecall, Checklists

    AttentionListener, Reader,Viewer Recognition

    Exposure, PresentationCirculation Reach

    Effectiveness Test Persuasion Process

    Alternative Response Hierarchies

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    High Low

    H

    igh

    Low

    Topical Involvement

    Perceiv

    edproduct

    differentiation

    Learning Model Low Involvement

    Model

    Dissonance/

    Attribution Model

    Cognitive

    AffectiveConative

    Conative

    Affective

    Cognitive

    Cognitive

    Conative

    Affective

    Clever Ads Encourage LowInvolvement Learning

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    Involvement Learning

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin + Computers are high-involvement,highly differentiated products

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    highly differentiated products

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin + Cognitive Response

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    A method for examining consumers cognitiveprocessing of advertising messages by looking at

    their cognitive responses to hearing, viewing, or

    reading communications.

    Examines types of thoughts that are evoked by anadvertising message.

    Consumers write down or verbally report theirreactions to a message.

    A Model of Cognitive Response

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Cognitive Response Categories

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    Counter Arguments Support Arguments

    Source Derogation Source Bolstering

    Thoughts About

    the Ad Itself

    Thoughts About

    the Ad Itself

    Source BolsteringSource Derogation

    Support ArgumentsCounter Arguments

    Affect Attitude

    Toward the Ad

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Product/Message Thoughts

    Source - Oriented Thoughts

    AdExecution Thoughts

    Elaboration Likelihood Model

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Focuses on the way consumers respond to persuasive

    messages based on the amount and nature of elaborationor processing of information

    Peripheral route topersuasionabilityand motivation to

    process a message is

    low and receiverfocuses more on

    peripheral cues ratherthan message content

    Central route topersuasionabilityand motivation to

    process a message is

    high and closeattention is paid tomessage content

    Routes to attitude change

    Celebrity Endorsers Can Be Peripheral Cues

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin + How Advertising Works

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    Advertising Input

    Message content, mediascheduling, repetition

    Filters

    Motivation, ability,

    (involvement)

    Consumer

    Cognition, Affect, Experience

    Consumer Behavior

    Choice, consumption,

    loyalty, habit, etc.

    Advertising Input

    Message content, mediascheduling, repetition

    Filters

    Motivation, ability,

    (involvement)

    Consumer

    Cognition, Affect, Experience

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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    Session VI Case Study

    Dove: Campaigning for Real Beauty

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    Session VII

    Establishing Objectives and Budgeting

    Promotional Programs

    Value of Objectives

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    Focus &

    Coordination

    Plans &

    Decisions

    Measurement

    & Control

    Plans &

    Decisions

    Focus &

    Coordination

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Objectives

    Characteristics of Objectives

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    Attainable

    Measurable

    Specific

    Realistic

    Specific

    Measurable

    Attainable

    Realistic

    Not Mutually

    Exclusive

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Objectives

    Advertising Can Shape Corporate Images

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    +

    Marketing Versus Communications Objectives

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    Vs.

    Marketing Objectives

    Generally stated in thefirms marketing plan

    Achieved through theoverall marketing plan

    Quantifiable, such assales, market share, ROI

    To be accomplished in agiven period of time

    Must be realistic andattainable to be effective

    Marketing Objectives

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Communications

    Objectives

    Derived from the overallmarketing plan

    More narrow thanmarketing objectives

    Based on particularcommunications tasks

    Designed to deliverappropriate messages

    Focused on a specifictarget audience

    Many Different Factors Affect Sales

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    The

    EconomyDistribution Technology Price Policy

    Promotion CompetitionProduct

    Quality

    Price PolicyTechnologyDistribution

    Product

    QualityCompetitionPromotion

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    $ALE$

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    Direct Response Ads Seek Sales

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    +

    Many Ads Seek Communications Objectives

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    +

    Advertising and Movement Toward Action

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Teaser campaigns

    AffectiveRealm of emotions.

    Ads change attitudes and

    feelings

    CognitiveRealm of thoughts.

    Ads provide information

    and facts.

    ConativeRealm of motives.Ads stimulate or direct

    desires.

    Image copyStatus, glamour appeals

    AnnouncementsDescriptive copyClassified adsSlogans, jingles, skywriting

    Competitive ads

    Argumentative copy

    Point of purchase

    Retail store ads, DealsLast-chance offersPrice appeals, Testimonials

    Purchase

    Conviction

    Preference

    Liking

    Knowledge

    Awareness

    Image Ads Can Have a StrongEffect on Preference

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    +

    The DAGMAR Approach

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    DefineAdvertising

    Goals forMeasuring

    Advertising

    Results

    DAGMAR Difficulties

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    Attitude - Behavior

    Relationship

    Response Hierarchy

    Problems

    Response Hierarchy

    Problems

    Attitude - Behavior

    Relationship

    Sales Objectives

    NeededInhibits CreativityCostly and Impractical

    Sales Objectives

    NeededCostly and Impractical

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Legitimate Problems

    Questionable Objections

    Advertising-Based View of Communications

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    Advertising Through Media

    Acting on Consumers

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Balancing Objectives and Budgets

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Dollars Goals

    What were

    willing and able

    to spend

    What we need to

    achieve our

    objectives

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    BASIC Principle of Marginal Analysis

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Increase Spending

    Decrease Spending

    HoldSpending

    If the increased cost is less than theincremental (marginal) return

    If the increased cost is equal to theincremental (marginal) return.

    If the increased cost is more than theincremental (marginal) return

    Assumptions for Marginal Analysis

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Sales are the

    principal objectiveof advertising andpromotion

    Sales are the result of

    advertising and

    promotion, and

    nothing else

    Advertising Sales/Response Functions

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Incr

    ementalSales

    Advertising Expenditures

    A. Concave-

    DownwardResponse Curve

    Incr

    ementalSales

    Advertising Expenditures

    Range A Range B Range C

    B. S-Shaped

    ResponseFunction

    Hig

    hSpending

    LittleEffect

    Init

    ialSpending

    Litt

    leEffect

    MiddleLevel

    Hig

    hEffect

    Top-Down Budgeting

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    The Promotion Budget Is Set to Stay Within the Spending

    Limit

    Top Management Sets the Spending LimitTop Management Sets the Spending Limit

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Top-Down Budgeting Methods

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    Affordable

    Method

    Affordable

    Method

    Competitive

    Parity

    Percentage

    of Sales

    Return on

    Investment

    Arbitrary

    Allocation

    Percentage

    of Sales

    Competitive

    Parity

    Arbitrary

    Allocation

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Top

    Management

    Bottom-Up Budgeting

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    Total Budget Is Approved by

    Top Management

    Cost of Activities are Budgeted

    Activities to Achieve ObjectivesAre Planned

    Promotional Objectives Are Set

    Cost of Activities are Budgeted

    Activities to Achieve ObjectivesAre Planned

    Promotional Objectives Are Set

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Objective and Task Method

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    Estimate Costs Associated with Tasks

    (determine costs of advertising, promotions, etc)

    Determine Specific Tasks(advertise on market area television and radio and

    local newspapers)

    Establish Objectives(create awareness of new product among 20 percentof target market)

    Determine Specific Tasks(advertise on market area television and radio and

    local newspapers)

    Establish Objectives(create awareness of new product among 20 percentof target market)

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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    Ad Spending and Share of Voice

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Decreasefind a

    Defensible NicheIncrease to Defend

    Attack With Large SOV

    Premium

    Maintain Modest

    Spending PremiumCompetitors

    ShareofV

    oice

    High

    Low

    HighLow

    Your Share of Market

    Session VIII

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    Creative Strategy : Planning & Development

    Advertising Creativity

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    Determining whatthe advertising

    message will say or communicate

    Determining whatthe advertising

    message will say or communicate

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Creative

    Strategy

    Creative

    Tactics

    Determining howthe messagestrategy will be executed

    The Ideal Power Idea Should . . .

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    Let Prospects Vividly Experience the Goods

    Allow You to Brand the Advertising

    Revolve Around the Clinching Benefit

    Be Likely to Attract the Prospects Attention

    Be Describable in a Simple Word or Phrase

    Allow You to Brand the Advertising

    Revolve Around the Clinching Benefit

    Be Likely to Attract the Prospects Attention

    Be Describable in a Simple Word or Phrase

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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    Young's Creative Process

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    Getting Raw Material, Data, Immersing One'sSelf in the Problem to Get the Background.

    Immersion

    Ruminating on the Data Acquired, Turning ItThis Way and That in the Mind.

    Digestion

    Ceasing Analysis and Putting the Problem Outof Conscious Mind fora Time.

    Incubation

    A Sudden Inspiration or Intuitive RevelationAbout a Potential Solution.

    Illumination

    Studying the Idea, Evaluating It, and DevelopingIt for Practical Usefulness.

    Verification

    Getting Raw Material, Data, Immersing One'sSelf in the Problem to Get the Background.

    Immersion

    Ruminating on the Data Acquired, Turning ItThis Way and That in the Mind.

    Digestion

    Ceasing Analysis and Putting the Problem Outof Conscious Mind fora Time.

    Incubation

    A Sudden Inspiration or Intuitive RevelationAbout a Potential Solution.

    Illumination

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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    Getting Creative Input

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    Read anything related

    to the product or

    market!

    Listen to what people

    are talking about!

    Use the product to

    become familiar with

    it!

    Ask everyone involved

    for information!Work in and learnabout the clients

    business!

    Ask everyone involved

    for information!

    Listen to what people

    are talking about!

    Use the product to

    become familiar with

    it!Read anything related

    to the product or

    market!

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Verification and Revision of Ideas

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    Evaluate Ideas Generated

    Reject Inappropriate Ideas

    Refine Remaining Ideas

    Give Them Final Expression

    Directed Focus Groups

    Message Communication Studies

    Portfolio Tests

    Viewer Reaction Profiles

    Portfolio Tests

    Message Communication Studies

    Directed Focus Groups

    Give Them Final Expression

    Refine Remaining Ideas

    Reject Inappropriate Ideas

    Evaluate Ideas Generated

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Objective

    Techniques

    The 10 greatest ad slogans of all time

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    1. De Beers Diamonds are forever2. Nike Just do it!

    3. Coca Cola The pause that refreshes

    4. Miller Lite Tastes great, less filling

    5. Avis We try harder

    6. Maxwell House Good to the last drop

    7. Wheaties Breakfast of champions

    8. Clairol Does she . . . or doesnt she?

    9. Morton Salt When it rains it pours

    10. Wendys Wheres the beef?

    Company or Brand Campaign Theme

    BMWs Slogan Has Helped Build Its Brand Image

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    +

    An Advertising Campaign

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    Integrated

    Interrelated Coordinated

    In Different Media Over a Time Period

    Integrated

    Interrelated Coordinated

    In Different Media

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Marketing

    Communication Activities

    Centered on a Theme orIdea

    Advertising Campaign Themes

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    The Ultimate Driving

    Machine

    BMW

    At a place called

    Miller time

    Miller

    Lite

    Like a Rock

    Chevy

    TrucksBMW

    Miller

    Lite

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    The central message that will be communicatedin all of the various IMC activities

    Successful Long-Running Campaigns

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Nike Just do it

    Allstate Insurance Youre in good hands with Allstate

    Hallmark cards When you care enough to send

    the very best

    Budweiser This Buds for you

    Intel Intel inside

    State Farm Insurance Like a good neighbor,

    State Farm is there

    Chevy Trucks Like a rock

    Dial soap Arent you glad you use Dial?

    Company or Brand Campaign Theme

    This ad is part of a new advertising campaign theme forMiller Lite beer

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    +

    Building a Copy Platform Outline

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    6. Supporting Information and Requirements

    5. Creative Strategy Statement

    4. Selling Idea or Key Benefits to Communicate

    3. Specify Target Audience

    2. Advertising and Communications Objectives

    1. Basic Problem Advertising Must Address

    5. Creative Strategy Statement

    4. Selling Idea or Key Benefits to Communicate

    3. Specify Target Audience

    2. Advertising and Communications Objectives

    1. Basic Problem Advertising Must Address

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Major Selling Ideas

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    Positioning the BrandUse a Unique

    Selling Position

    Create the Brand ImagePositioning Find the Inherent Drama

    Create a Brand ImageUse a Unique

    Selling Position

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Seeking the Major Idea

    Approaches to the Major Selling Idea: USP

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    Buy this

    produce and

    you'll benefit

    this way orenjoy this

    reward

    Must be unique

    to this brand or

    claim; something

    rivals can't ordon't offer

    UniqueBenefit UniqueBenefit

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Unique Selling Proposition

    The promise

    must be strong

    enough or

    attractiveenough to move

    people

    Potent

    Perspectives of Great Ad Men on the Major SellingIdea

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    Brand image or personality is

    particularly important when

    brands are similar

    Every ad must contribute

    to the complex symbol

    that is the brand image.

    Brand image or personality is

    particularly important when

    brands are similar

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    David Ogilvy

    Find the inherent drama or

    characteristic of the product that

    makes consumers buy it

    (Inherent drama) is often

    hard to find but it is always

    there, and once found it isthe most interesting and

    believable of all

    advertising appeals.

    Leo Burnett

    Creating a Brand Image

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    Often used for products such as soft drinks, perfume,

    liquor, clothing, airlines

    The creativity sales strategy is based on a strong,

    memorable brand identity through image advertising

    Used when competing brands are so similar it is

    difficult to find or create a unique attribute

    The creativity sales strategy is based on a strong,

    memorable brand identity through image advertising

    Used when competing brands are so similar it is

    difficult to find or create a unique attribute

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Approaches to the Major Selling Idea:Inherent Drama

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Inherent DramaMessages generally presented in a warm,

    emotional way Hallmark, Maytag, Kellog

    Focus on consumer benefits with an emphasis

    on the dramatic element in expressing them

    Messages generally presented in a warm,

    emotional way Hallmark, Maytag, Kellog

    Approaches to the Major Selling Idea:Positioning

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    Establish a particular place in the customers

    mind for the product or service

    Establish a particular place in the customers

    mind for the product or service

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Positioning

    Based on product attributes/ benefits,

    price/quality, use or application, type of user,

    problem solved

    This Ad Positions 3M as Highly Innovative

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    +

    Session IX

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    Session IX

    Creative Strategy:Implementation and Evaluation

    Appeals and Execution Style

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    To influence consumer feelings towarda product,service or cause

    To influence consumer feelings towarda product,service or cause

    The approach used to attract the

    attention of consumers

    The way an appeal is turned into an

    advertising message

    The way the message is presented tothe consumer

    The approach used to attract the

    attention of consumers

    The way an appeal is turned into an

    advertising message

    Advertising

    Appeals

    Execution

    Style

    Types of Rational Appeals

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    Popularity: Stresses the brands popularity

    News: News announcement about the product

    Price: Makes price offer the dominant point

    Competitive: Makes comparisons to other brands

    Feature: Focus on dominant traits of the product

    News: News announcement about the product

    Price: Makes price offer the dominant point

    Competitive: Makes comparisons to other brands

    Feature: Focus on dominant traits of the product

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    A Rational, Popularity Appeal

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    +

    Appealing to Personal States or Feelings

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    Achievement Accomplishment

    Actualization AffectionAmbition Arousal

    Stimulation Comfort

    Excitement Fear

    Grief Happiness

    Joy Love

    Nostalgia Pleasure

    Pride SafetySecurity Self-esteem

    Sentiment Sorrow

    Achievement Accomplishment

    Actualization AffectionAmbition Arousal

    Stimulation Comfort

    Excitement Fear

    Grief Happiness

    Joy Love

    Nostalgia Pleasure

    Pride SafetySecurity Self-esteem

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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    Transformational Ads

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    Richer

    MoreExciting

    Warmer

    Feelings

    Meanings

    Images

    Beliefs

    MoreExciting

    WarmerRicher

    Beliefs

    Images

    Meanings

    Feelings

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    MoreEnjoyable

    It must make the

    product useexperience . . .

    The ads

    create . . .

    Norwegian Uses Transformational Advertising

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    +

    Norwegian Uses Transformational Advertising

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    +

    Levels of Relationship with Brands

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    Emotions

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Personality

    Product Benefits

    Personality

    Product Benefits

    MasterCard Creates an Emotional Bond

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    +

    Ad Execution Techniques

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    Personality SymbolPersonality Symbol

    Straight-sell

    Scientific

    Demonstration

    Comparison

    Dramatization

    Humor

    Slice of life

    Testimonial

    Animation

    FantasyFantasyDramatization

    Comparison

    AnimationDemonstration

    TestimonialScientific

    Slice of lifeStraight-sell

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Apple Uses a Testimonial

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    +

    Crest Whitestrips Uses a Demonstration

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    +

    Headline:

    Headline:

    Print Ad Components

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    Layout:

    How Elements Are Blended Into a Finished Ad

    Visual Elements:

    Illustrations Such As Drawings or Photos

    Body Copy:The Main Text Portion of a Print Ad

    Subheads:

    Smaller Than the Headline, Larger Than the Copy

    Words in the Leading Position of the Ad

    Visual Elements:

    Illustrations Such As Drawings or Photos

    Body Copy:The Main Text Portion of a Print Ad

    Subheads:

    Smaller Than the Headline, Larger Than the Copy

    Words in the Leading Position of the Ad

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Altoids Uses a Headline Effectively

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    +

    Headlines Can Capture Attention

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    +

    Print Ad Layout

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    Format Arrangement of the Elements on the Printed Page

    SizeExpressed in Columns, Column Inches or Portionsof a Page

    ColorBlack & White or Two-, Three-, or Four-colorPrinting

    WhiteSpace

    Marginal and Intermediate Space That RemainsUnprinted

    Format Arrangement of the Elements on the Printed Page

    ColorBlack & White or Two-, Three-, or Four-colorPrinting

    SizeExpressed in Columns, Column Inches or Portionsof a Page

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Top 10 Jingles of the CenturyCompany Jingle

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    1. McDonalds You deserve a break today

    2. U.S. Army Be all that you can be

    3. Pepsi Cola Pepsi Cola Hits the Spot

    4. Campbells Soup Mm, Good Mm Good

    5. Chevrolet See the USA in your Chevrolet

    6. Oscar Mayer I wish I was an Oscar Mayer Wiener

    7. Wrigleys gum Double your pleasure, double your fun

    8. Winston Winston tastes good like a cigarette should

    9. Coca-Cola Its the real thing

    10. Brylcreem BrylcreemA little dabll do ya

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    Preproduction Tasks

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    Select a Director

    Cost Estimation andTiming

    Choose ProductionCompany

    Bidding

    PreproductionMeeting

    Production TimetableProduction Timetable

    Cost Estimation andTiming

    Bidding

    Choose ProductionCompany

    Select a Director

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Preproduction

    Production Tasks

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    Location Versus Set

    Shoots

    Night/weekend

    Shoots

    Talent

    Arrangements

    Night/weekend

    Shoots

    Location Versus Set

    Shoots

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Production

    Postproduction Tasks

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    Editing Processing

    Sound Effects

    Audio/Video

    Mixing

    OpticalsClient/agency

    Approval

    Duplicating

    Release/

    Shipping

    Duplicating

    Client/agency

    ApprovalOpticals

    Audio/Video

    Mixing

    Sound Effects

    ProcessingEditing

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Postproduction

    Consistent With Brands Marketing Objectives?

    Consistent With Brands Marketing Objectives?

    Evaluation Guidelines for Creative Output

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    g j

    Consistent With Brands Advertising Objectives?

    Consistent With Creative Strategy, Objectives?

    Does It Communicate What Its Suppose to?

    Approach Appropriate to Target Audience?

    Communicate Clear, Convincing Message?

    Does Execution Overwhelm the Message?

    Appropriate to the Media Environment?

    g j

    Consistent With Brands Advertising Objectives?

    Consistent With Creative Strategy, Objectives?

    Does It Communicate What Its Suppose to?

    Approach Appropriate to Target Audience?

    Communicate Clear, Convincing Message?

    Does Execution Overwhelm the Message?

    Appropriate to the Media Environment?

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Is the Advertisement Truthful and Tasteful?

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    A series of decisions in ol ing the deli er of messages

    A series of decisions in ol ing the deli er of messages

    Media Terminology

    Media

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    A series of decisions involving the delivery of messages

    to audiences

    Goals to be attained by the media strategy and

    program

    Decisions on how the media objectives can be attained

    The various categories of delivery systems, including

    broadcast and print media

    Either radio or television network or local station

    broadcasts

    A series of decisions involving the delivery of messages

    to audiences

    Goals to be attained by the media strategy and

    program

    Decisions on how the media objectives can be attained

    The various categories of delivery systems, including

    broadcast and print media

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Media

    Planning

    Media

    Objectives

    MediaStrategy

    Media

    Broadcast

    Media

    Publications such as newspapers magazines direct

    Publications such as newspapers magazines direct

    Media Terminology

    Print

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    Publications such as newspapers, magazines, direct

    mail, outdoor, etc.

    The specific carrier within a medium category

    Number of different audience members exposed atleast once in a given time period

    The potential audience that might receive the message

    through the vehicle

    The number of times the receiver is exposed to the

    media vehicle in a specific time period

    The potential audience that might receive the message

    through the vehicle

    Number of different audience members exposed atleast once in a given time period

    The specific carrier within a medium category

    Publications such as newspapers, magazines, direct

    mail, outdoor, etc.

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Print

    Media

    Media Vehicle

    Reach

    Coverage

    Frequency

    Developing the Media Plan

    Marketing Creative

    MarketingSituation Creative

    Situation

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    Selecting Media Within Class

    Selecting Broad Media Classes

    Determining Media Strategy

    Media Use Decision

    Print

    Media Use Decision

    Broadcast

    Media Use Decision

    Other Media

    Selecting Media Within Class

    Determining Media Strategy

    Selecting Broad Media Classes

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Setting Media ObjectivesSetting Media Objectives

    Marketing

    Strategy Plan

    Creative

    Strategy Plan

    Marketing

    Strategy Plan

    Situation

    Analysis

    Creative

    Strategy Plan

    Situation

    Analysis

    Media Planning Difficulties

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    Measurement

    Problems Lack of Information

    Inconsistent

    Terms

    Time

    Pressure

    Inconsistent

    Terms

    Lack of Information

    Measurement

    Problems

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Problemsin Media

    Planning

    Analyze the Market

    Analyze the Market

    Developing the Media Plan

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    Evaluate Performance

    Implement Media Strategy

    Develop Media Strategy

    Establish Media Objectives

    Analyze the Market

    Implement Media Strategy

    Develop Media Strategy

    Establish Media Objectives

    Analyze the Market

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Brand and Category Analysis

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Percentage of brand to total U.S. salesin market

    Percentage of total U.S. populationin market

    BDI = X 100

    Brand Development Index

    Brand and Category Analysis

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Percentage of total product categorysales in market

    Percentage of total U.S. populationin market

    CDI = X 100

    Category Development Index

    Brand and Category Analysis

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    High market share

    Good market potential

    High market share

    Good market potential

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Lo

    wC

    DI

    H

    ighCDI

    High BDI

    Low market share Good

    market potential

    Low market share Good

    market potential

    Low BDI

    High market share

    Monitor for sales decline

    High market share

    Monitor for sales decline

    Low market share

    Poor market potential

    Brand and Category Analysis

    High BDI

    Low BDI

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    The market usually represents

    good sales potential for both

    the product and the brand.

    The market usually represents

    good sales potential for both

    the product and the brand.

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Low

    CDI

    HighCDI

    High BDI

    The product category shows high

    potential but the brand isnt

    doing well; the reason should be

    determined.

    The product category shows high

    potential but the brand isnt

    doing well; the reason should be

    determined.

    Low BDI

    The category isnt selling well

    but the brand is; may be a good

    market in which to advertise but

    should be monitored for salesdecline.

    The category isnt selling well

    but the brand is; may be a good

    market in which to advertise but

    should be monitored for salesdecline.

    Both the product category and

    the brand are doing poorly; not

    likely to be a good place to

    advertise.

    Target Audience Coverage

    Population excluding target market

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    Target

    Market

    Proportion

    Full

    Market

    Coverage

    Partial

    Market

    Coverage

    Coverage

    Exceeding

    Market

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Population excluding target market

    Target marketMedia coverage

    Media overexposure

    Three Scheduling Methods

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Continuity

    Pulsing

    Flighting

    Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

    Reach and Frequency

    A. Reach of One Program B. Reach of Two Programs

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Total market audience reached Total market audience reached

    C. Duplicated Reach of Both

    Total reached with both shows

    D. Unduplicated Reach of Both

    Total reach less duplicate

    Graph of Effective Reach

    Fi 10 22

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Figure 10-22

    +

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    Message Factors Determining Frequency

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    Message Complexity

    Message Uniqueness

    New Vs. Continuing Campaigns

    Image Versus Product Sell

    Message Variation

    Wearout

    Advertising Units

    Wearout

    Message Variation

    Image Versus Product Sell

    New Vs. Continuing Campaigns

    Message Uniqueness

    Message Complexity

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Message

    or Creative

    Factors

    Media Factors Determining Frequency

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    Clutter

    Number of Media

    Used

    Repeat Exposures

    Editorial

    Environment

    Scheduling

    AttentivenessAttentiveness

    Number of Media

    Used

    Editorial

    Environment

    Repeat Exposures

    Clutter

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Media Factors

    Determining Relative Cost of Media-Print

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Cost of ad space(absolute cost)

    Circulation

    CPM = X 1,000

    Cost per thousand (CPM)

    Determining Relative Cost of Media-Broadcast

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    CPRP =Cost of commercial time

    Program rating

    Cost per rating point (CPRP)

    Television Pros and ConsAdvantages Disadvantages

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    Short Message Life

    High Production Cost

    Low Selectivity

    High Absolute Cost

    Clutter

    Mass Coverage

    High Reach

    Impact of Sight, Soundand Motion

    High Prestige

    Low Cost Per Exposure

    Attention Getting

    Favorable Image

    High Production Cost

    High Absolute Cost

    Short Message Life

    Low Selectivity

    Favorable Image

    Attention Getting

    Low Cost Per Exposure

    High Prestige

    Impact of Sight, Soundand Motion

    High Reach

    Mass Coverage

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Radio Pros and ConsAdvantages Disadvantages

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    Clutter

    Fleeting Message

    Audio Only

    Low Attention Getting

    Local Coverage

    Low Cost

    High Frequency

    Flexible

    Low Production Cost

    Well-segmented Audience

    Low Attention Getting

    Clutter

    Audio Only

    Well-segmented Audience

    Low Production Cost

    Flexible

    High Frequency

    Low Cost

    Local Coverage

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Long Lead Time for

    Long Lead Time for

    Magazine Pros and ConsAdvantages

    Disadvantages

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    Visual Only

    Long Lead Time for

    Ad Placement

    Lack of Flexibility

    Segmentation Potential

    Quality Reproduction

    High Information Content

    Longevity

    Multiple Readers

    Visual Only

    Long Lead Time for

    Ad Placement

    Multiple Readers

    Longevity

    High Information Content

    Quality Reproduction

    Segmentation Potential

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Newspaper Pros and ConsAdvantages Disadvantages

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    Clutter

    Poor Reproduction Quality

    Short Life

    Low Attention Getting

    High Coverage

    Low Cost

    Short Lead Time for Placing Ads

    Ads Can Be Placed in InterestSections

    Timely (Current Ads)

    Reader Controls Exposure

    Can Be Used for Coupons

    Selective Reader Exposure

    Poor Reproduction Quality

    Low Attention Getting

    Clutter

    Short Life

    Can Be Used for Coupons

    Reader Controls Exposure

    Timely (Current Ads)

    Ads Can Be Placed in InterestSections

    Short Lead Time for Placing Ads

    Low Cost

    High Coverage

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Outdoor Pros and ConsAdvantages Disadvantages

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    Short Ads

    Local Restrictions

    Sort Exposure Time

    Poor Image

    Location Specific

    High Repetition

    Easily Noticed Poor Image

    Short Ads

    Sort Exposure Time

    Easily Noticed

    High Repetition

    Location Specific

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Direct Mail Pros and ConsAdvantages Disadvantages

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    Poor Image (Junk Mail)

    High Cost Per Contact

    Clutter

    High Selectivity

    Reader Controls Exposure

    High Information Content

    Repeat Exposure Opportunities

    Poor Image (Junk Mail)

    High Cost Per Contact

    Repeat Exposure Opportunities

    High Information Content

    Reader Controls Exposure

    High Selectivity

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Internet Pros and ConsAdvantages Disadvantages

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    Websnarl (Crowded Access)

    Few Valid MeasurementTechniques

    Limited Creative Capabilities

    Technology Limitations

    Limited Reach

    User Selects Product Information

    User Attention and Involvement

    Interactive Relationship

    Direct Selling Potential

    Flexible Message Platform

    Few Valid MeasurementTechniques

    Technology Limitations

    Websnarl (Crowded Access)

    Limited Creative Capabilities

    Flexible Message Platform

    Direct Selling Potential

    Interactive Relationship

    User Attention and Involvement

    User Selects Product Information

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Session XI

    Evaluation of Print media / Support

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    Media

    Classifications of Magazines

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    ByGeography

    Local

    Regional

    National

    ByContent

    Consumer

    Magazines

    Farm

    Magazines

    Business

    Magazines

    BySize

    Large

    Flat

    Standard

    Small or

    Pocket

    ByGeography

    ByAudience

    2003 McGraw-Hill Companies Inc McGraw-Hill/Irwin

    An Example of a Farm Publication

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    2003 McGraw-Hill Companies Inc McGraw-Hill/Irwin

    +

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    Magazine Circulation ConceptsCirculation: Number of individualswho receive a publicationthrough either

    subscriptionor store purchase.

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    PrimaryCirculation

    Pass-Along

    Readership

    Guaranteed

    Circulation

    Circulation

    Verification

    Total Audience (the total

    number of primaryand

    pass-along readers)

    Controlled

    Circulation

    Controlled

    Circulation

    Circulation Verification:

    Credibility of circulation

    figures. Auditing is done

    through verification

    services.

    Guaranteed Circulation: A

    rebate is given to advertisers is

    guaranteed number is not met.

    (Estimations are made below

    the average)

    Primary Circulation:

    (Original subscribers or

    purchasers)

    2003 McGraw-Hill Companies Inc McGraw-Hill/Irwin

    p p

    Pass-Along Readership: Giving

    the magazine by the primary

    subscriber or purchaser to an

    other person OR read

    somewhere.

    Purchasing Magazine Advertising Space

    Cost elements include many variables such as:

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    2003 McGraw-Hill Companies Inc McGraw-Hill/Irwin

    -Magazine Rates (Primarily a function of circulation)

    -Size if the ad

    -Position in the publication

    -The particular edition chosen: (e.g., geographical or Demographic)

    -Any special mechanical or production requirement

    -Number and frequency of insertions

    -Magazine networks: Offer advertisers the opportunity to buy space in a group ofpublications as a package deal

    Declining Ad Revenues

    Declining Ad Revenues (affected by, e.g., spending and competition)

    The Future of Magazines

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    Database Marketing

    Advances in Technology

    Cross-Mag. & Media Deals

    Circulation Management

    Stronger Editorial Platforms

    Electronic Delivery Methods

    Database Marketing: Database MKG for better segme

    Advances in Technology: Selective binding & Ink

    Cross-Mag. & Media Deals (Packages offered to advertisers)

    Circulation Management: Maintaining a circulation level as a major

    Stronger Editorial Platforms (for different appeals)

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Trends,

    Trends,

    Trends

    Magazines Go Online

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    +

    Daily

    DailyPublication

    Frequency

    Publication

    Frequency

    Newspaper Classifications

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    Ethnic, Religious, Etc.Ethnic, Religious, Etc.

    Weekly

    Standard

    Tabloid

    Business, Financial, Etc.

    Special-Audience

    National

    Supplements

    National

    Special-Audience

    Standard

    Frequency

    Type

    Size

    Tabloid

    Size

    Supplements

    Type

    WeeklyFrequency

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Audience Type

    The Dominant Advertising Vehicle

    The Dominant Advertising Vehicle

    Characteristics of Newspapers

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    Local Ads Provide Most of Revenue

    Main Community Medium

    Dailys Read by About 60% of adults

    Over 1,500 Daily Papers in Print

    Account for 22% of Ad Dollars

    Main Community Medium

    Dailys Read by About 60% of adults

    Over 1,500 Daily Papers in Print

    Account for 22% of Ad Dollars

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Mass audience

    Mass audience

    Unique Newspaper Features

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    Cross-section of population

    Wide range of content, subjects

    Timely coverage, daily issues

    Permanent, durable record

    Local geographic coverage

    Selective readership by area

    Readership concentrated in timeReadership concentrated in time

    Timely coverage, daily issues

    Selective readership by area

    Wide range of content, subjects

    Local geographic coverage

    Cross-section of population

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    General (Often National)

    Local (Mostly Retail)

    General (Often National)

    Local (Mostly Retail)

    Newspaper Advertising

    Display Ads

    Display Ads

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    Rates Based on Size, DurationRates Based on Size, Duration

    General (Often National)

    Paid Reading Notices (Editorial Look)

    Small Items Arranged by Topic

    Classified Display - Combination

    Notices by People, Organizations

    Legal Notices - Public Reports

    Financial Reports

    Notices by People, Organizations

    Legal Notices - Public Reports

    Small Items Arranged by Topic

    General (Often National)

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Prepared Separately by Advertisers

    Display Ads

    Classified Ads

    Public Notices

    Financial Reports

    Public Notices

    Classified Display - Combination

    Classified Ads

    Paid Reading Notices (Editorial Look)

    Display Ads

    Printed Inserts

    Production Quality

    Production Quality

    Newspaper Advantages and Drawbacks

    Extensive Penetration

    Advantages

    Disadvantages

    Extensive Penetration

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    They Have aShort Life Span

    yMay Be Low

    They Have aShort Life Span

    yMay Be Low

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Not Psychographically Selective

    Not Demographically Selective

    There's Heavy Ad Competition

    Extensive Penetration

    Flexibility

    Geographic Selectivity

    Involvement, Acceptance

    Services Offered

    Potentially Poor Placement

    May Be Overlapping Circulation

    Not Psychographically Selective

    Not Demographically Selective

    There's Heavy Ad Competition

    Extensive Penetration

    Flexibility

    Geographic Selectivity

    Involvement, Acceptance

    Services Offered

    Potentially Poor Placement

    Read by Almost All Consumers

    Read by Almost All Consumers

    Newspaper Characteristics

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    Readers Look at Over 3/4of All PagesReaders Look at Over 3/4of All Pages

    Many Shapes, Sizes,Paper, & Printing

    Few Limitations on Ad Size

    Read Daily in an Ordered Way

    Spot and Full Color AvailableSpot and Full Color Available

    Few Limitations on Ad Size

    Read Daily in an Ordered Way

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Wide Audience

    Offer

    Flexibility

    The Future of Newspapers:

    The future of newspapers depend on:

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    -Competition from other media

    -Circulation

    -Cross-media buying

    -Attracting and Retaining Readers

    -Editorials

    -Technology

    Session XII

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    Advertising and Social Media

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    Session XIII

    Amplifying Perceptions: How JetblueUses Twitter To Drive Engagement

    And Satisfaction

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    Session XIV

    Direct Marketing, Internet & Interactive

    Media

    Direct Marketing Defined

    The total of activities by which the seller directs efforts to a

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    Catalog Selling

    Direct Selling Direct Action Advertising

    Direct MailTelemarketing

    TV SellingCatalog Selling

    TV Selling

    Direct Mail

    Direct Action AdvertisingDirect Selling

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    f y ff

    target audience using one or more media for the purpose ofsoliciting a response by phone, mail , or personal visit f rom a

    prospective customer.

    Consumer Credit Cards

    Consumer Credit Cards

    Growth of Direct Marketing

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    Miscellaneous factors(e.g., Changing values, More sophisticatedmarketing techniquesand Improved image of the industries)

    Technical Advances

    Direct Marketing Syndicates

    Changing Structure of Society

    Technical Advances

    Direct Marketing Syndicates(Companies are opening new opportunitiesfor marketers through (e.g., list development, Catalogs and Sweepstakes)

    Changing Structure of Society

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

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    Improve Selection of MarketS t

    Improve Selection of MarketS t

    Objectives of Database Marketing

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    Segments

    Stimulate Repeat Purchases

    Cross-selling Other Products

    Customer RelationshipManagement

    Cross-selling Other Products

    Stimulate Repeat Purchases

    Segments

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Objectives

    List Services

    List Services

    Developing a Database

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    Direct MarketingAssociation

    Standard Rate &Data Service (SRDS)

    U.S. Postal Service

    Simmons MarketResearch Bureau:(Researchon at home buying via Mail

    or Telephone)

    U.S. Census BureauNational CensusBureau

    Direct MarketingAssociation

    Postal Service

    Standard Rate &Data Service(Lists ofConsumersand Businesses.

    Published in two volumes)

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Sources

    Direct-Marketing Strategies and Media

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    One Step Two StepOne Step

    The medium is used

    directly to obtain an

    order

    Often use 800 number

    phone orders and credit

    card payment

    May use one medium

    to obtain inquiry and

    qualify prospect

    Typically follow up

    with a second medium

    to complete the sale

    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Direct Response Advertising Types

    All forms of advertising designed to obtain

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    2003 McGraw-Hill Companies, Inc., McGraw-Hill/Irwin

    Direct Mail Pieces and Inserts

    Soliciting Inquiry Recipients.

    e.g., Direct Mail Pieces andInserts Soliciting Inquiry

    Recipients.

    immediate, direct response by telephone,mail, orpersonal visit from individual audience members.

    TV and CATV Commercials andInfomercials Selling Products by

    Phone or Mail Order.

    e.g., TV and CATV Commercialsand Infomercials Selling Products

    by Phone or Mail Order.

    Card Decks, Coupon Booklets andMini-catalogs Seeking Orders for

    One or More Products.

    e.g., Coupon Booklets and

    Vouchers; and Mini-catalogs

    Seekin