MKT 4351 CH 11
Chapter 11: Advertising and Promotion
Terms
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copy deck
- Internet
- still working on it, company's know info about you, tailor to ppl looking at different websites.
- Affordable Method
- is a technique for budgeting advertising in which all the money a retailer can afford to spend on advertising in a given time period becomes the advertising budget.
- What methods can be used to set an advertising budget?
- Affordable, Percentage-of-sales, and Task and objective methods.
- Advertising efficiency
- is concerned with whether the advertising result was achieved with the minimum financial expenditure.
- Horizontal cooperative advertising
- occurs when two or more retailers band together to share the cost of advertising usually in the form of a joint promotion of an event or sale that would benefit both parties. (milk, SA as a vacation destination)
- What are the steps in planning an advertising campaign?
- Selecting Advertising Objectives- product, inform, get them into store; Budgeting for the Campaign- has to be something measurable; Designing the Message- local-do themselves; Media Alternatives- newspaper(cheaper), magazines(more exp. But get passed around), TV(30-60sec slots); Media Selection- coverage, reach, frequency, cost per thousand; Scheduling of Advertising- when, how often, where; Evaluating the Results- produce results, effectiveness, efficiency
- Percentage-of-sales method
- is a technique for budgeting in which the retailer targets a specific percentage of forecasted sales as the advertising budget. (self-fulfilling prophecy)
- Cost per thousand method(CPM)
- is a technique used to evaluate advertisements in different media based on cost. (estimate) The cost of the advertisement divided by the number of people viewing it, which is then multiplied by 1,000.
- What is the purpose of advertising?
- To inform, Persuade, and Remind consumers about our products.
- Advertising
- is paid, nonpersonal communication through various media (get to decide what is said, who says it, how it's said; internet adv.-click on things/sites visited gets you different ads than someone else sees.)
- Promotion
- is a means that retailers use to bring traffic into their stores
- What are the possible purposes of doing sales promotions?
- Stimulate trial, Increase consumer demand, and Improve product availability.
- Promotional advertising
- is a type of advertising in which the retailer attempts to increase short-term performance by using product availability or price as a selling point. (having a sale)
- Who can be targeted with sales promotions?
- Consumers, Wholesalers, and Other channel members
- Retail Promotion Mix (SAPP)
- Advertising, Sales promotion, Publicity, and Personal Selling
- Publicity
- is non-paid-for communications of information about the company or product, generally in some media form. We don't pay to place publicity We do, however, pay to develop it. Ppl pick up and talk about it b/c its news! Things on good morning America/9:00 news, cover of Newsweek, etc. We pay XYZ firm to get us on the cover of Newsweek.
- What are the four types of advertising discussed in class?
- Institutional, Promotional, Vertical cooperative and Horizontal cooperative.
- Sales promotion
- involves the use of media and nonmedia marketing pressure applied for a predetermined, limited period of time
- What outcomes can retailers examine to see if their advertising has "worked"?
- Impact, Advertising effectiveness, and advertising efficiency.
- What can retailers use communication to do (i.e., what are the possible objectives)?
- Crnication to do (i.e., what are the possible objectives)eating a Positive Store Image, Public Service Promotion, Increased Patronage from Existing Customers, Attraction of New Customers (from existing trade area and expand trade area), and Interdependence
- Coverage
- is the theoretical maximum number of consumers in the retailer's target market that can be reached by a medium. (determines price, estimate)
- Impact
- refers to how strong an impression an advertisement makes and how well it ultimately leads to a purchase.
- Direct Mail
- can target specific group, expensive, not always opened, ppl think they are junk/ "spam" mail, database, catalog
- Reach
- is the actual total number of target customers who come into contact with an advertising message.
- Is publicity really free?
- No, we are paying for other companies to develop it for us. We pay them to get us on the cover of Newsweek, on the 9:00 news or on Good Morning America.
- Task and objective method
- is a technique for budgeting in which the retailer establishes its advertising objectives and then determines the advertising tasks that need to be performed to achieve those objectives.
- What media alternatives are available to retailers?
- Newspaper Advertising, Television advertising, Radio advertising, Magazine advertising, Direct Mail, Internet, and Miscellaneous media.
- Radio Advertising
- in the middle, messages appeal to specific demographic groups, a lot of flexibility, audience is impressed when their fav. Radio announcer endorses product, not creative, deleted/not saved after use.
- Miscellaneous Media
- ads at bank drive thru, billboards, gas pumps, yellow pages, etc. Good to reinforce but should not be the only medium used.
- What methods can be used to set an advertising budget?
- Affordable, Percentage-of-sales, and Task and objective methods.
- Advertising effectiveness
- is the extent to which the advertising has produced the result desired.
- Secondary trading area
- is the geographic area where the retailer can still be competitive despite a competitor having some locational advantage.
- Primary trading area
- is the geographic area where the retailer can serve customers, in terms of convenience and accessibility, better than the competition.
- Personal selling
- involves a face-to-face interaction with the consumer. The goal is to Sell merchandise or services. (FLEXIBLE)
- Newspaper Advertising
- inexp, flexible, single read, most frequent. Most popular b/c: most newspapers are local, low technical skill required to create the ads, short interval b/t the time copy is written and the ad appears. Disadvantages: b/c the consumer was exposed to the newspaper doesn't mean they read or saw the ad, life of a newspaper is short, typical person spends very little time with each issue, poor reproduction quality (little visual appear), and newspapers have a broad appeal and may/may not reach their target market.
- Magazine Advertising
- reread, many ppl use, last longer, nicer visuals
- Who can we communicate with?
- Our customers, Vendors, suppliers, other firms, and our competitors.
- Television Advertising
- visual and audio, exp(esp if play during popular shows/super bowl), more dynamic medium, more effective, powerful tool for generating higher sales (a lot of ppl watch TV a lot), 24-hour shopping channels, paid programming.
- Cumulative reach
- is the reach that is achieved over a period of time.
- Frequency
- is the average number of times each person who is reached is exposed to an advertisement during a given time period. (how often)
- What media alternatives are available to retailers?
- Newspaper Advertising, Television advertising, Radio advertising, Magazine advertising, Direct Mail, Internet, and Miscellaneous media.
- Institutional advertising
- is a type of advertising in which the retailer attempts to gain long-term benefits by promoting and selling the store.
- Vertical cooperative advertising
- occurs when the retailer and other channel members (usually manufacturers) share the advertising budget. Usually the manufacturer subsidizes some of the retailer's advertising that features the manufacturer's brands. (manuf. pays 40% of costs up to 4% of annual purchases)